The UK needs a million construction workers – but why the gap?

The UK construction industry is facing one of the biggest workforce challenges in its history. As demand for new homes, infrastructure projects, retrofit programmes, and green energy developments continues to grow, the supply of skilled construction workers is struggling to keep pace.

Recent research from Skills England suggests that the sector will require more than one million additional workers by 2035 to meet future demand. This shortage is already being felt across the industry, with contractors reporting difficulties recruiting skilled tradespeople, project managers, engineers, and site supervisors.

But why the huge gap?

In simple terms, the demand is outweighing the resource: more projects but fewer skilled workers. Major investments in transport, energy, commercial developments, and residential construction are creating significant demand for skilled labour.

According to Skills England, construction faces the largest projected increase in workforce demand of any priority sector. Employment across key construction occupations is expected to grow substantially over the next decade, driven by housing targets, infrastructure investment, and the transition to a low-carbon economy.

And it’s not just about creating new jobs; the industry also has to replace the experienced workers who are expected to leave the workforce in the same period.

Age plays a factor

On both sides of the coin, age is playing its part in creating a skills gap. One of the biggest contributors to the skills shortage is the ageing demographic of the construction workforce.

A significant proportion of construction workers are now over the age of 50, and many are approaching retirement. Industry estimates suggest that hundreds of thousands of workers could leave the sector over the next decade, taking decades of experience and specialist knowledge with them.

Meanwhile, there’s declining interest amongst potential younger workers, with education pathways pointing towards university rather than vocational careers and a lack of understanding of the construction industry.

Construction has historically struggled with perception issues amongst young people; now, added to this is a lack of awareness about the modern construction industry. Today’s sector increasingly relies on technology, digital tools, sustainability expertise, and advanced manufacturing techniques, yet many young people still associate construction solely with manual labour, making recruitment more challenging at a time when it is so greatly needed.

What does this mean in real terms for the industry?

The consequences of the labour shortage are already becoming apparent:

• Project delays and extended delivery timelines
• Increased labour costs
• Greater competition for skilled workers
• Reduced productivity
• Pressure on housing and infrastructure targets
• Increased risk of skills shortages affecting economic growth

Without sufficient workforce capacity, delivering the UK’s ambitious housing and infrastructure programmes will become increasingly difficult. Industry forecasts suggest that tens of thousands of additional workers will be needed every year simply to keep pace with demand.

Can the gap be plugged?

There is no single solution but there are certainly steps in the right direction happening right now. The government has already announced significant funding aimed at boosting construction training and creating new routes into the sector. However, industry leaders agree that collaboration between government, employers, training providers, and education institutions will be essential to close the skills gap.

What else can be done?

• Expanding apprenticeship opportunities
• Improving careers advice and promotion in schools
• Increasing investment in technical education
• Supporting retraining and career changers
• Encouraging greater diversity within the workforce
• Improving retention through career development and workplace culture
• Embracing modern construction methods and technology

With more than one million additional workers potentially required by 2035, addressing the issue has become a strategic priority for both government and industry. Organisations that invest in training, apprenticeships, workforce development, and modern recruitment strategies will be best positioned to thrive in an increasingly competitive labour market.

The construction sector has a critical role to play in delivering the UK’s future homes, infrastructure, and economic growth. Ensuring there are enough skilled people to do the job will be one of the industry’s defining challenges over the next decade.