The United Kingdom is grappling with an escalating challenge in the building and construction sector, as population growth significantly outpaces the size of the UK workforce, according to Trevor Phillips. Despite sweeping reforms to the planning system aimed at meeting housing and infrastructure targets, the government faces a pressing question: who will build them?
Chronic shortage threatens construction goals
Industry leaders are sounding the alarm over a chronic shortage of construction workers. The Construction Industry Training Board (CITB) estimates that at least 50,000 additional workers are needed annually to meet current demand. However, the numbers paint a concerning picture. Since 2019, the UK’s population has increased by 2.5 million, while the construction workforce has shrunk by 320,000 workers. This decline leaves the industry with just 29 workers per 1,000 people—the lowest ratio on record.
Relying on overseas talent amid domestic challenges
To bridge this gap, the construction industry has increasingly turned to overseas workers. Analysis from the Office for National Statistics‘ Annual Population Survey (APS) reveals a significant shift in workforce demographics. In 2007, one in 12 construction or civil engineering workers was foreign-born. By 2016, this figure had risen to one in seven.
However, tracking these trends has become more difficult since the APS stopped recording occupation by country of birth in 2022. In a bid to attract more international talent, the UK government added roles such as bricklayers and stonemasons to the Shortage Occupation List in July 2023. This list, now known as the Immigration Salary List (ISL), highlights that over a quarter of roles included are in construction.
Apprenticeships fall short of industry needs
While overseas recruitment provides some relief, the expectation is that domestic apprenticeships will address the shortfall. Yet, the figures are stark. Approximately 15,500 people start construction apprenticeships each year, but nearly half (47%) do not complete their courses. This dropout rate has climbed from 30% in 2014/15, indicating a troubling trend.
A survey conducted by the British Association of Construction Heads identified key reasons behind the high dropout rates: redundancies, dismissals, and low salaries. Consequently, fewer than 9,000 apprentices complete their training annually—just one-fifth of the CITB’s estimated annual demand.
Government initiatives to boost workforce numbers
In response to the growing crisis, the government has established 32 skills hubs designed to fast-track training for an additional 5,000 apprentices annually by 2028. These hubs focus on critical trades such as bricklaying and scaffolding, aiming to bolster the domestic workforce.
The Workers Union says…
“The construction sector continues to face significant hurdles in meeting the UK’s housing and infrastructure needs. With population growth showing no signs of slowing, the pressure is mounting on both the government and industry leaders to find sustainable solutions to this workforce issue.”
