When Labour kicked off its parliament with a pledge to build 1.5 million new homes, the response from bosses across the construction industry was a mixed one.
Any ambitious homebuilding project is encouraging for the sector in terms of output and work opportunities. However, for an industry already struggling to fill gaps in a depleted workforce, concerns surrounding the feasibility of meeting such targets in its current state are only natural.
To hit the 1.5 million homes target, City & Guilds estimates that the homebuilding sector will need to recruit 161,000 additional workers, equating to a 30% increase on the current workforce.
Construction firms struggling to recruit suitable talent
According to City & Guilds’ Foundation for the Future paper, which surveyed training providers and employees around the UK, more than three-quarters of construction firms are struggling to recruit the skilled workers they need.
Worryingly, 84% of respondents said they now believed the construction industry to be facing a critical skills crisis, with 54% adding that they doubted that the sector could meet the government’s current housing or net-zero targets.
More than half of those surveyed indicated they weren’t confident that the workforce would possess the required knowledge to deliver net-zero targets in the next five years.
While the need for green skills has been widely acknowledged, only 51% of learners have so far received training despite 65% of respondents anticipating sustainable construction practices being vital over the next five years.
City & Guilds highlights the following as the major barriers to recruitment:
- Rising costs (46%)
- Local labour market challenges (41%)
- Demand for job-ready hires (36%)
- Lack of interest among young people (26%)
- Stricter immigration laws (28%)
How can the construction industry tackle skills shortages?
Few would argue that there is a clear need for the construction industry to improve how it both attracts new talent and upskills existing workers.
During March’s Spring Statement, Chancellor Rachel Reeves announced that the government would commit to £600m worth of investment to train up to 60,000 more skilled construction workers, which was a welcome initial step.
However, while Reeves’ commitment was positive for the long-term future of the industry, it does little to move the needle in the immediate months and years.
While traditional training routes such as apprenticeships and college courses will always have an essential part to play, there is clearly a growing need for more efficient methods of training — such as courses delivered by private providers — if the industry is to begin filling the significant gaps in its workforce, and if it is to meet Labour’s 1.5m target.
Interestingly, City & Guilds highlighted an equally important need to attract older generations to construction, urging for improved visibility for skills development for those who don’t necessarily fall into the ‘typical’ demographics for construction training.
Commenting on City & Guilds’ latest findings, Kirstie Donnelly MBE, CEO of City & Guilds, said: "To meet the Government’s ambitious housing and net zero targets, we need a fundamental reset in how we attract, train, and upskill talent across the construction sector. This means stronger collaboration between industry, education, and government, with targeted investment and flexible training routes.”