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The construction industry needs a long-term labour strategy, not just quick fixes

By Dr David Crosthwaite, chief economist, Building Cost Information Service (BCIS)

The construction industry is facing an undeniable skills crisis. While the government’s recent pledge to expand apprenticeships and training opportunities for young people is a welcome step, its short-term impact remains questionable.

A headline figure of 10,000 additional apprentices may sound impressive, but in reality it barely scratches the surface. According to the Construction Industry Training Board (CITB), 210,000 workers leave the industry annually, and overall employment is already down 10% compared to pre-pandemic levels. The sector is losing experienced workers faster than it can replace them, and the current pace of recruitment is nowhere near sufficient to bridge the gap.

Lower demand has temporarily masked the effects of a shrinking workforce — but this will not last forever. According to the CITB, the government’s plan to build 1.5 million homes alone requires 152,000 additional workers. That figure fails to account for the quantity of skilled labour needed for major infrastructure projects, public building repairs, or the expansion of the green energy sector. The overall shortage runs well into the hundreds of thousands, with no clear plan to address the immediate shortfall.

Dr David Crosthwaite

Ideally, a steady pipeline of locally trained workers would meet this demand. However, that has not been the UK’s reality for some time. Beyond apprenticeships, the government must acknowledge what has long been a crucial component of the UK’s construction workforce: overseas labour.

Skilled foreign workers have historically played a vital role in meeting demand, whether it be the great Victorian civil engineering projects with Irish and Chinese workers to the post-war reconstruction with labour from the Caribbean. With chronic shortages persisting, the challenge for this government will be striking the balance to ensure that enough workers are available now, while also developing a sustainable domestic talent pipeline for the future.

Meanwhile, the decision to reduce the minimum apprenticeship duration from 12 months to eight raises concerns. While a shorter timeframe may improve completion rates, it risks compromising training quality. Skilled labour is fundamental to safety, efficiency and build quality — diluting training standards could have costly consequences. Additionally, the time lag between enrolling young people in apprenticeships and getting them onto job sites cannot be ignored. Once again, what are the plans to address the immediate shortages?

The industry itself must also step up. If construction is to attract and retain talent, it must become a more desirable career path. Moving away from an over-reliance on self-employment toward stable, well-paid roles with clear career progression would make the sector far more appealing. Without this shift, convincing young people to commit to long-term careers in construction will remain a challenge.

Labour’s manifesto pledge to “bring joined-up thinking, ensuring that migration to address skills shortages triggers a plan to upskill workers and improve working conditions in the UK” suggests an awareness of the issue. However, if this government is serious about solving the construction skills crisis, it must take a broader approach — one that includes high-quality apprenticeships, a realistic stance on overseas labour and a fundamental rethink of how to make construction an attractive and sustainable career choice. Anything less is just papering over the cracks.