News
Friday 10th August 2026
Labour Demand is set to soar
More than a million new construction workers will be needed in the UK over the next ten years to meet Government commitments to “get Britian building” and replace the industry’s aging workforce.
The Department for Business and Trade predicts a large shortfall of construction labour by 2030, however, deepening a skills shortage already plaguing the industry.
With contractors struggling to recruit and retain skilled workers, the industry as a whole must find new ways to bolster its numbers. Otherwise, opportunities presented by the Planning and Infrastructure Act 2025, which aims to speed up delivery of major infrastructure and housebuilding projects, could be lost.
Why do we need more workers?
Government commitments, including the delivery of 1.5 million homes in England over this Parliament, will cause a “sharp rise” in employment demand in the construction sector, according to Skills England, an executive agency of DWP.
“This is the largest projected increase in workers across all priority sectors – driven by government targets,” states Skills England’s Sector Skills Need Assessment – Construction which was published in June.
It says employment in priority occupations within construction is projected to grow by 493,000 (26%) between 2025 and 2035. This is in addition to replacing the estimated 595,000 workers expected to leave these priority occupations over this period, bringing total demand to more than one million.
“These estimates are contingent on achieving the Government’s commitments in housing, retrofit and infrastructure. This is also highly dependent on the level of finance, planning, materials in industry and the time lag it takes for the workforce to reach the required level of competence,” it adds.
The issue so far
The skilled labour shortage is one of the most pressing challenges faced by contractors today. It is caused by multiple factors, including:
- An aging workforce reaching retirement age
- Difficulties recruiting younger people with declining interest in vocational careers
- Labour costs surging alongside other operational expenses, making it harder for firms to compete for the shrinking pool of skilled workers
- The so-called Great Resignation that followed the Covid-19 pandemic which saw workers reassess their job satisfaction, seeking roles with higher pay, better benefits and less physically demanding tasks.
Recruiting the next generation
Construction firms should invest in outreach programmes that engage secondary school and college students, offering apprenticeships, internships and summer job opportunities, advises Access Construction, which builds construction software for UK&I contractors and homebuilders.
By collaborating with local trade schools and technical institutions, companies can showcase the potential for career growth and stability within the industry.
Attending career fairs, offering hands-on experiences, and dispelling misconceptions about the industry’s opportunities are crucial. Educating younger workers about the financial benefits, job security, and advancements in construction technology can help reverse the stigma and encourage more people to pursue careers in this field.
Training and career development
In March last year, the Government pledged to invest £625 million to train up to 60,000 more skilled construction workers by 2029.
Tim Balcon, CEO at CITB, said: “Meeting the scale of the UK’s housing need requires a step-change in how we train people for construction careers. Accelerated Apprenticeships are a key part of that shift – helping more people gain the skills they need more quickly, and in the areas where they are most needed.
“But it’s not just about getting people through training faster. As an industry, we need to place greater focus on outcomes – ensuring that apprenticeships lead to sustained, high-quality employment. That’s how we build a workforce that is not only larger, but more resilient for the future.”
Access Construction recommends offering continuous learning and career development opportunities so that new hires and existing employees can gain the skills needed for today’s construction projects, including operating modern tools and adapting to new technologies.
Improving pay, benefits and work-life balance
To remain competitive in a tight labour market, construction firms must offer attractive compensation packages states Access Construction. Competitive wages, healthcare benefits, family leave and flexible work schedules are essential in appealing to the emerging workforce.
Offering non-traditional benefits, such as mental health resources, wellness programmes and financial literacy training, can enhance job satisfaction and retention.
Embracing technology and innovation
Technologies, such as automation, prefabrication and augmented reality can help reduce reliance on manual labour and attract a tech-savvy workforce, according to Access Construction.
The skilled labour shortage is a complex challenge that requires a range of proactive strategies, but by building a sustainable and diverse workforce the construction industry will secure its future.