The UK construction sector is struggling with a shortage of everyday workforce skills, resulting in errors, delays, obstacles and excessive hiring costs, according to a new report.

The research, published in a new report ‘Counting the Cost: The UK’s Employability Skills Crisis’ by skills development organisation City & Guilds, surveyed 908 employers and 1,014 18–24-year-olds and revealed that 83% of employers have been negatively impacted by the shortage of ‘employability’ skills like self & time management, face-to-face communication and valuing customers.

The report investigated the financial impact to UK employers of this shortage, focusing on the Construction, Health & Social Care and Digital, Media & Technology sectors, calculating recruitment volumes, typical hiring costs and agency fees in 2023. 

Based on data showing that 37% percent of Construction employers linked a lack of employability skills with high staff turnover, the report estimates that annual hiring costs for the Health & Social Care sector exceed £2 billion. 

And the net costs of employability skills shortages in the sector could run even higher – as employers must meet salary bills for staff who leave having not met expectations, and use internal resources to onboard and train staff who do not remain with the business.

Quoted in City & Guilds’ 2025 report on the Construction industry’s skills challenges, Chris Dowling, Future Talent and Organisational Development Lead, Vistry Group, said:

“We provide an extensive induction, master classes and soft skill sessions – a solid foundation for anyone new to the field. There’s an emphasis on pastoral care with dedicated mentors, so that the graduates feel supported throughout their journey. Permanent contracts are offered, and our Future Talent Committee ensures ongoing feedback, along with regular check-ins with apprenticeship providers and HR business partners.

Andy Moss, Interim Chief Executive Officer of City & Guilds, said:    

“Employers are telling us loud and clear that employability skills matter just as much as technical know-how, if not more. Yet we’re now seeing a growing human skills shortage. Our findings confirm that apprenticeships and vocational training are highly effective routes to developing the employability skills businesses need, together with the practical experience that’s critical for success in today’s workplace.”    

Read City & Guilds’ new report: Counting the cost: The UK’s Employability Skills Crisis here