Construction Sector Sounds Alarm Over Skills Shortage
A growing crisis in skilled labour could derail the UK government's flagship promise to build 1.5 million homes by 2029, according to a new report from City & Guilds. With 76% of construction businesses struggling to recruit, the “critical skills shortage” is now front and centre in the national housing conversation.
The Foundations for the Future report paints a stark picture: more than half (54%) of industry leaders doubt the sector’s ability to hit the government’s targets — let alone meet sustainability ambitions like net zero housing.
239,300 Workers Needed — But Where Will They Come From?
According to figures from the Construction Industry Training Board (CITB), the sector must recruit almost a quarter of a million additional workers over the next four years. Yet, employers cite a perfect storm of obstacles: high business costs, a disinterested younger generation, limited access to training, and restrictive immigration policies.
Nearly a third (28%) of firms blame stricter immigration rules — such as increased skills charges and longer settlement times — for worsening the recruitment crunch.
Training Gaps and Rigid Rules Hamper Progress
The report shows a strong appetite for skills development among workers, with 85% saying training is vital for career growth. However, 61% report struggling to access funded training — a major bottleneck in getting new talent job-ready.
Kirstie Donnelly MBE, CEO of City & Guilds, believes the UK must act fast. “We can’t build 1.5 million homes without the people to deliver them. It’s time to rethink how we attract and train talent — through flexible routes, smarter investment, and real collaboration between industry, education and Government.”
She also called for urgent reforms to the Apprenticeship Levy, which many say is too rigid to meet real-world industry needs.
Young Talent Missing, Switchers Untapped
Almost half of construction firms say the industry’s weak appeal to young people is a core issue. Meanwhile, career returners and switchers are an underutilised resource. Nick Maclean, acting president of the Royal Institution of Chartered Surveyors, said, “The Government’s ambitious targets become less achievable each year we fail to inspire and support the next generation of builders.”
He called for better funding models that support career changers, alongside enhanced vocational training and apprenticeships that reflect the modern, green construction landscape.
A Three-Point Plan for a Skilled Future
City & Guilds’ report outlines a three-pronged solution:
- Attract new talent through early education and industry outreach.
- Support career changers with accessible, relevant training.
- Upskill existing workers by embedding lifelong learning and green technologies.
With the UK’s economic recovery and climate goals intertwined with construction success, the pressure is mounting to invest in people — not just bricks and mortar.
“If we don’t act now, we won’t just fall short on housing. We’ll miss a once-in-a-generation opportunity to build a workforce that’s ready for the future,” said Donnelly.
The clock is ticking, and without immediate action, the foundation of the UK’s housing promise may crack before the first brick is even laid.
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