A recent report by Turner & Townsend reveals that the UK is grappling with a severe shortage of skilled green collar construction workers, causing salaries in high-demand trades to soar above £134,000 annually. This shortage is prevalent across all regions of the UK, driving competition for labour and pushing costs to unprecedented levels.
The International Construction Market Survey (ICMS) 2024 highlights the escalating costs for specialist green contractors. Outside London, the average wage for these experts is £47 per hour, approximately double the rate for general labourers. This disparity underscores the significant demand for skilled workers in green construction roles.
The scarcity of skilled construction workers poses a threat to the UK’s net zero targets. High wage inflation is also jeopardising the country’s decarbonisation efforts. The survey indicated that every UK region is experiencing skills shortages, with 78% of UK markets reporting major impacts on their programmes.
In London, the construction market is particularly affected. The city ranks as the 10th most expensive construction market globally, with average construction costs reaching £3,502 per square metre, up from £3,024 per square metre in 2023. Insulation specialists and solar heat pump installers in London now earn about £70 per hour, a 22% increase over the past year. These green collar workers are paid two and a half times more than general construction labourers, who earn £28 per hour on average.
Despite the high labour costs and wage inflation, the report forecasts a decrease in the UK’s average construction inflation, predicting a drop to 3.0% in 2024 from 4.2% in 2023. This forecast is a relief for the sector, which has been heavily impacted by the Covid-19 pandemic and soaring energy prices in recent years.
Chris Sargent, managing director of UK real estate at Turner & Townsend, emphasised the need for a substantial increase in trained specialists. He noted the rise of green specialists across the UK and highlighted the importance of construction in achieving the nation’s net-zero goals. The UK’s building stock is relatively old and inefficient, and upgrading it is crucial for future sustainability.
Sargent stressed that achieving these goals requires a robust workforce, with hundreds of thousands of new trained specialists needed to support the green transition. While high wages may attract the necessary skills, green construction must not become prohibitively expensive compared to traditional work. To make net zero achievable and affordable, it is essential to invest in building and training a pipeline of skilled workers and to adopt innovative digital tools to enhance productivity and outcomes.
The Turner & Townsend report makes it clear that the construction industry must address these challenges to meet the UK’s ambitious environmental targets and ensure a sustainable future.
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