The growing skills gap in the construction sector is increasingly detrimental, with a recent Construction Skills Network report highlighting significant recruitment and training challenges. The industry is projected to need an additional 251,500 workers by 2028 to keep up with demand. However, construction employment dropped by 0.9 per cent in 2023 after a slight increase in 2022, and a further decline of 1.5 per cent is expected in 2024, though some growth is anticipated in 2025.
A House of Commons Committee Report also notes that this skills shortage is obstructing the completion of critical national infrastructure projects. The gap impacts the sector’s ability to manage quality, adhere to health and safety standards, and meet project deadlines. It also drives up costs, reduces productivity, and delays essential public sector projects such as healthcare and housing developments.
Understanding the origins of this skills shortage is crucial for addressing it. Several factors have contributed to the problem, including an ageing workforce, with more people leaving the industry than entering it. This has resulted in a workforce where only 19 per cent are under 25, and there is a notable lack of skilled specialists, especially in technology and digital fields crucial for the industry’s future. Moreover, while demand for construction projects has risen, the number of new workers entering the industry has not kept pace. For example, an estimated 24,400 newly qualified apprentices are needed annually to meet demand, particularly in subcontractor trades. The UK Trade Skills Index 2023 warns that the industry needs 937,000 new recruits over the next decade, often referred to as “the missing million.” Additionally, the skills gap has led to a candidate-driven market, making skilled labour more expensive and compounding financial challenges for contractors already facing high material costs and supply chain issues.
To prevent the gap from widening, construction employers need to take proactive measures rather than merely reacting to individual recruitment challenges. Retention strategies are essential, as employee retention in the construction industry is low. Companies should focus on keeping current employees by offering competitive benefits, wellbeing policies, and attractive remuneration packages to prevent them from leaving for competitors.
Engaging the younger generation is also critical. Offering flexible working conditions, better work-life balance, job sharing, and part-time hours can make the industry more appealing. Increased opportunities for apprenticeships, traineeships, and upskilling are necessary to attract and retain younger workers. Positive messaging and promotion of the industry on the right social platforms will also help in drawing young talent.
It’s vital to challenge the negative perceptions surrounding construction careers. Research by YouGov and Deconstruction indicates that 69 per cent of adults wouldn’t consider a career in construction, viewing jobs in the sector as “dirty, stressful, and unsafe.” Employers need to highlight the industry’s digital innovation, quality engineering, building design, and new technology to show the benefits of a skilled career in construction.
Speeding up recruitment processes is another key factor. Despite the candidate-driven market, many construction companies are slow to hire, which leads to losing top talent. Prioritising swift interview scheduling, job offers, and onboarding can help secure the best candidates.
Finally, adopting a strategic approach to recruitment can make a significant difference. Embracing digital tools to manage and streamline the recruitment process and working with specialist construction recruiters, rather than generic agencies, can improve the effectiveness of recruitment efforts. Platforms like the Strategic Resourcing platform, which draws on the expertise of a national network of construction-specialist recruitment companies, can help bridge the skills gap by focusing on quality over quantity, ensuring employers find the best talent with fewer applications.
Hercules Site Services plc (LON:HERC) is a collaborative, innovative company delivering services of the highest standards within the Civil Engineering sector of the construction industry. Hercules Construction Academy provides a comprehensive range of courses designed to equip individuals with the essential skills and knowledge required for a long and successful career in the construction industry.
