The UK has been struggling with a construction skills shortage for some years now. In 2021, it was estimated that 75% of all UK contractors were having problems recruiting skilled workers.
The latest CITB figures suggest that the UK needs an extra 251,500 construction workers by 2028 to meet expected levels of work. This means the industry will need to recruit an extra 50,300 new workers per year.
Where are the biggest gaps in the construction workforce?
The 2024-2028 Construction Skills Network report reveals that the major sectors for demand are:
- Private Housing – In 2023, output on the construction of new private homes saw a decline of over 13%. The housing market slowly improved throughout 2024, but due to the skills shortage, the CSN report forecasts a comparatively sluggish growth in the coming years.
- Infrastructure – New infrastructure output “flatlined” in 2022, and output rose by around 4% in 2023. The annual growth rate for the sector between now and 2028 is projected at 1.5%, one of the lowest of all sectors. Due to skill shortages, as of November 2023 the government’s Environment Agency delivered less than 20% of its initial output target, despite using up 33% of the time allocated and 25% of the funding.
- Repair and Maintenance – 2023 was the fourth consecutive year in which R&M output outperformed new work. Between now and 2028, the CSN report forecasts an average growth in R&M work of 2.8% per year. Many private homeowners are choosing to improve their current properties instead of moving. Meanwhile, damp issues and cladding remediation projects are encouraging many public housing associations to invest more in R&M. Due to this projected demand, the construction skills shortage will likely be particularly noticeable in the R&M sector.
How to address the construction skills gap in your organisation
- Aim to attract younger workers. Polls suggest that only 5% of students are considering pursuing roles in construction. Consider ways you might attract younger workers. This might be through offering generous renumeration and employee benefits packages, or through highlighting the possibilities of long-term job security and career development.
- Invest in apprenticeships. The 2024 Open University Business Barometer highlights how many employers are turning to apprenticeships to bridge their skill gap. However, the report found that 63% of organisations do not have specific recruitment, retention, or training initiatives for apprentices or other target groups. The government has plenty of resources available on their site for any business that wants to offer attractive and sustainable apprenticeships.
- Invest in training and development. As well as expanding your workforce, look for opportunities to improve your existing workforce. With training and development, you can broaden your existing workers’ skillsets, which could help reduce the skills shortage you are currently facing. Plus, if you publicise the extensive training and development opportunities at your business, it could help you recruit the next generation of construction workers. Development opportunities tend to be a strong incentive for potential employees.
Get tailored support from James Hallam
The coming years are going to be tough for the UK construction industry. But at James Hallam, we are committed to helping you in any way we can.
We can support you with thorough risk assessments and through ensuring you have adequate insurance cover in place to protect your business, your workers, and your assets. Our support can provide essential peace of mind at the best possible price.