PwC's latest UK Economic Outlook examined the potential impact of lower future net migration from the EU on the UK economy after Brexit, based on Office for National Statistics figures.
The report found London has the the highest percentage of European Economic Area (EEA) -born workers at 14%, compared to a UK average of 7%.
In 2016, out of the UK's entire construction workforce, around 10% were born in EEA countries.
PwC said: "London's construction sector could be particularly hard hit by reduced EU migration: 30% of construction workers in London were EEA migrants in 2016, while a fifth of UK-born construction workers in the capital are due to retire in the next five years and there are currently around 60,000 vacancies in the industry in London."
-- Advertisement --
John Hawksworth, chief economist at PwC, said limiting migration from the EEA could "disproportionately impact some sectors and regions".
"By identifying the industries and areas that could be worst affected, the government can make informed decisions on post-Brexit migration policy and target their support accordingly," he said.
"Curbing recruitment of high skilled workers from the EEA could have particularly negative implications for longer term productivity and the UK's international competitiveness.
"It is true that there could be potential benefits of lower EU migration in terms of reduced pressure on transport systems, housing and key public services such as health and education, but these could be more than offset by the loss of skilled EU workers in these sectors if the post-Brexit policy regime is not calibrated correctly."
(LM/MH)
