The Current Skills Problem
The UK construction industry has faced a longstanding skills deficit, and this is expected to worsen as it prepares for one of the largest build programs since the post-war era. Demand for construction work has risen, but there are not enough entrants to meet this demand. An estimated 24,400 newly qualified apprentices are needed each year, with subcontractor trades particularly struggling to attract young talent. According to the UK Trade Skills Index 2024, the industry needs 1,265,000 new recruits over the next decade.
An additional 251,500 workers will be required to meet UK construction output by 2028. However, more people are leaving the industry than joining it, according to the Construction Industry Training Board (CITB).
To support the ambitious goal of building 1.5 million homes, a plan to boost skills is essential. Without this, all other aspects of the strategy are at risk of failing.
Fixing the Skills Problem with a Plan to Boost Skills
The government must collaborate with key sectors in construction to develop a Skills Plan that supports its large-scale homebuilding program. This plan should address the root causes of the skills shortage, starting with areas of consensus, including the following:
1. Engage the Younger Generation
To attract more young talent to the construction sector, employers can offer flexible working options such as job sharing, part-time hours, and better work-life balance. Expanding high-quality apprenticeships, traineeships, and upskilling initiatives will help retain a younger workforce.
A supportive approach, including positive messaging and targeted promotion on social media platforms, can also help attract young people. The government, working with the CITB, trade bodies, and unions, could establish a coordinated social media strategy to counter negative perceptions. Research from YouGov shows that 69% of adults would not consider a construction career, associating the industry with being “dirty, stressful, and unsafe.” By highlighting the sector’s digital innovations, quality engineering, new technology, and the benefits of skilled careers, these perceptions could be challenged.
Increasing initiatives like Apprenticeship Week, job fairs, and school visit programs, led by professional institutions and associations, would further engage young people. Institutes such as the Institute of Civil Engineers and the Royal Institution of Chartered Surveyors already promote high-quality professional apprenticeships, which can serve as models for other sectors.
2. Upskilling Existing Workforce
Instead of relying on migrant workers, the construction industry should focus on upskilling the existing UK workforce, particularly at the trade level. Since it takes time to train and upskill workers, it is this area that requires the most transformational change to train British workers for roles in high demand.
The CITB plays a central role in skills training, particularly for trade roles. However, it has faced criticism from industry bodies and major contractors, leading to reforms in 2017. The government’s most recent review of the CITB’s effectiveness is awaited, and any recommendations from this review should be implemented to ensure it is fit for purpose in delivering this necessary transformation.
3. Worker Retention Strategies
Employee retention in the construction industry is low for various reasons. Employers must prioritise existing employees by offering competitive benefits, wellbeing policies, and attractive remuneration packages to prevent turnover. Becoming an “Employer of Choice” means creating a supportive work environment, offering benefits and culture that attract new talent while retaining experienced workers.
This strategy should be complemented by robust training programs for graduates, supported by educational institutions. Additionally, ongoing opportunities for upskilling and staff development should be part of the retention plan.
Typical Traits of an Employer of Choice are:
- Competitive salaries and benefits
- Positive, supportive culture
- Pleasant work environment
- Opportunities for training and development
- Feedback-driven culture
- Trust and transparency
- Professional growth and capacity building
What Educators, Trainers, and Employers Need from a Plan
To support skills development, the infrastructure, including Skills Centres, Technical Colleges, and universities offering construction-related courses, needs significant expansion and funding. The government has proposed progressive plans, including the creation of a new training body, Skills England, reforms to the training levy, and updates to apprenticeships.
Given the multi-year duration of degree courses and apprenticeships, implementing these reforms urgently is critical. The government’s plan should include consultations with construction industry bodies to identify priorities and quick wins to align the education sector with the industry’s needs.
The UK’s current construction labour shortages will worsen as approximately a quarter of the workforce plans to retire in the next decade. Therefore, a steady influx of trainees is essential, regardless of the large-scale homebuilding programme.
Employers, regardless of size, need confidence in long-term workloads in specific regions to justify investing in workforce expansion and training. A successful large-scale housing programme must include strategies for coordinated housing delivery across local authorities, ensuring a steady supply over time. Additionally, responsibility for delivery should be shared across the industry, not just the homebuilding sector, spanning SMEs, larger developers, builders, suppliers, and consultants. Skills training must address the entire industry, as residential developments will also require accompanying infrastructure.
So far the industry has reacted positively to last month’s government announcement of £600m overall for:
- 10 new technical colleges and assistance for existing colleges to offer more construction courses
- Support for skills boot camps, support for returner and upskilling
- Support for partnerships between colleges and construction companies to increase industry experienced teachers
- Support for the planned new Foundation Apprenticeships, further supported with funding from the planned Growth and Skills Levy .
- Support for industry placements in coordination with the CITB
- Support for Construction Skills Mission Board to promote employer collaboration
We will continue to look with interest to further announcements in this area.