Construction Worker Shortage: How Will it Affect The Construction Industry?

There’s a growing problem in the construction industry: construction worker shortage.

There aren’t enough skilled workers to entirely meet the demand of construction jobs available in the UK market. This shortage means that building projects, such as new homes or schools, are taking significantly longer to complete. These project delays can disrupt timelines, increase costs, and create uncertainty for both developers and communities.

This shortage isn’t only a challenge for the construction industry—it affects all of us. When construction costs rise, those increases often pass down to consumers. Rising costs, including higher labour costs, contribute to greater expenses for both construction businesses and consumers. For instance, if it costs more to build houses, the prices of homes may rise. Similarly, if it’s more expensive to construct a new store, the goods sold there may become more costly.

Labour shortages can also impact home prices, making it harder for people to afford to buy or rent. This contributes to the ongoing housing crisis, as supply struggles to keep up with demand and affordability worsens.

However, there are ways to fix this issue. In this article, we’ll explore effective strategies to attract more skilled workers into the construction sector. Our goal is to help make sure there are enough workers to keep building all the important projects we need, like homes, schools, and parks. If the shortage continues, it is expected that the construction industry will face further challenges, including slower growth and increased pressure on project delivery.

Key Takeaways

• The current UK construction worker shortage is causing delays in projects thereby raising costs, significantly impacting construction businesses.
• Key causes include an aging workforce, low interest among young people, and restrictive immigration policies, all of which are influenced by broader labour market conditions.
• Social media, VR, and partnerships are attracting young talent to showcase construction as a modern career.
• Ongoing training and collaboration with government agencies help workers stay current with new technologies.
• Policies like visa programs and training incentives can support workforce development and industry resilience, but immediate action is needed to address the shortage and prevent further disruption.

Introduction to the UK Construction Sector

The UK construction sector stands as a cornerstone of the nation’s economy, employing hundreds of thousands of construction workers and playing a crucial role in driving economic growth. From building homes and schools to delivering major infrastructure projects, the construction industry is essential for the UK’s long-term prosperity. However, the sector is currently grappling with a severe labour shortage, which is putting significant pressure on construction firms across the country.

According to the Construction Industry Training Board (CITB), the UK construction industry will need to recruit around 50,300 additional workers every year until 2028 just to keep up with demand. This shortfall is one of the most pressing challenges facing the industry today. The root causes are complex and interconnected: an ageing workforce is leading to a wave of retirements, while younger generations are not entering the construction workforce in sufficient numbers. The lingering effects of the COVID-19 pandemic have also disrupted training and recruitment pipelines, making it even harder for the sector to meet demand.

As the UK construction sector looks to the future, addressing this labour shortage is vital—not only for the industry itself, but for the wider UK economy and the communities that depend on new construction and infrastructure. Meeting this challenge will require a renewed focus on training, recruitment, and innovation to ensure the sector’s continued growth and resilience.

Understanding the Construction Worker Shortage

As mentioned earlier, the construction industry is facing a significant challenge: a shortage of workers. Imagine that each construction site requires 100 workers, but can only find 70. That’s a substantial labour gap.

According to NPR, the number of people actively applying for construction jobs between 2019 and 2020 online fell by about 40%.

So, why aren’t there enough workers? There are a few big reasons:

• Aging Workforce: Many skilled workers are getting older and retiring, especially baby boomers. The retirement of baby boomers is creating a significant skills gap and succession planning challenge for the industry.
• Lack of Interest Among Young People: The younger generation of today does not consider construction as a career path. To address the shortage of skilled labour, there is an urgent need for investment in domestic training programs.
• Immigration Policies: In some places, labour laws for immigrants are very strict. This can make it hard for the construction industry to find enough workers, especially for jobs that require special skills. The decline in EU construction workers, particularly from countries like Poland and Romania, due to Brexit and new net migration policies, has further reduced the available workforce.

When there aren’t enough workers, it affects everything in construction:

• Short-Term: Right away, projects take longer and cost more.
• Long-Term: Over time, if this issue is not addressed, it may become increasingly challenging to build new structures or maintain existing ones. This could lead to fewer new homes, schools, or parks being developed. Additionally, higher commercial construction costs may drive up the cost of living and limit affordability in certain areas. The workforce shortage also threatens the sector’s ability to meet housing and infrastructure targets, impacting overall economic growth.

In summary, the shortage of construction workers is a pressing issue. The construction industry, like many other industries, faces similar challenges related to workforce composition, training, and migration. But by understanding the problem, we can start seeking solutions to solve it.problem, we can start finding ways to solve it.

The Ageing Workforce: A Looming Challenge

One of the most significant factors behind the current labour shortage in the construction sector is the ageing workforce. Many experienced workers, particularly those from the Baby Boomer generation, are now reaching or have already passed retirement age. This demographic shift is creating a substantial gap in the construction workforce, as the number of younger workers entering the industry is not enough to replace those leaving.

According to the Construction Industry Training Board, less than 19% of the construction workforce is under 25 years old. This means that a large proportion of skilled and managerial roles are held by older, experienced workers who are nearing retirement. Without a steady influx of young workers to learn from these experienced professionals, the sector faces a widening skills gap and a loss of valuable knowledge and expertise.

The lack of succession planning and limited career development opportunities for young workers further exacerbate the problem. Construction companies must take proactive steps to invest in training and career development, ensuring that the next generation of workers is equipped with the skills needed to fill the roles left vacant by retiring employees. By prioritising the recruitment and development of young talent, the construction sector can help secure its long-term future and maintain productivity in the face of an ageing workforce.

Regional Disparities in Construction Labour

Labour shortages in the UK construction sector are not evenly distributed across the country. Regional disparities in the availability of construction workers and skilled tradespeople present unique challenges for construction firms operating in different areas. For instance, while London is a major hub for construction jobs, it has one of the lowest rates of new construction apprenticeships, making it difficult for local firms to find the skilled workers they need.

In contrast, regions such as the North West and Yorkshire have higher rates of construction apprenticeships, even though they have fewer construction firms compared to the capital. This uneven distribution of training and employment opportunities can lead to bottlenecks in project delivery and increased competition for skilled workers in high-demand areas.

To address these regional disparities, the UK government has introduced targeted initiatives like the Skills England program and the Growth and Skills Levy. These programs are designed to boost training and upskilling opportunities for construction workers in regions facing the greatest labour shortages. By supporting construction apprenticeships and investing in local training providers, these initiatives aim to ensure that the construction sector can meet demand across the UK, helping to drive growth and deliver vital projects where they are needed most.

Strategies to Attract Young Talent

One of the main ways to resolve the construction worker shortage issue is by finding ways to make the construction industry appealing to young talents. Building a diverse workforce is also essential to meet industry demands and foster innovation. The construction industry is coming up with appealing initiatives to get young people interested in building careers. Here’s how:

Social Media Campaigns

Companies are leveraging platforms like Instagram and TikTok to showcase what construction work is really like. Through videos and stories, they highlight the impressive projects that construction workers build and the advanced technology they use, presenting the field as dynamic and exciting.

Virtual Reality Experiences

Imagine putting on a VR headset and stepping into a construction site without leaving your classroom. Some companies are doing just that, letting young people experience building in virtual reality. This way, they can see the fun and challenge of construction work up close.

School Partnerships

Construction companies and organisations are collaborating with schools to introduce students to construction careers.This includes initiatives like introducing guest speakers, offering construction site tours, and providing hands-on workshops where students can try out skills such as bricklaying or carpentry.

College Programs

Some colleges are working with the construction industry to create special programs specialising in construction. 

Apprenticeships

Apprenticeship achievements in Construction, Planning and the Built Environment subjects, England. Source: DfE

Apprenticeships combine classroom learning with real work on construction sites. Apprentices get to learn a trade by working alongside experienced workers. Some may get paid while learning on the job.

Internships

Internships give students a taste of what it’s like to work in construction. While they might not be as hands-on as apprenticeships, internships are a fitting introduction for students to see the variety of jobs available in the industry.

By using these strategies, the construction industry is working hard to attract young talent and show them that a career in construction can be rewarding, exciting, and full of opportunities.

Enhancing Skills Through Training and Development

In construction, learning is an ongoing process. It’s crucial for workers to continually improve their skills and expertise.

• New Technologies: The construction industry is constantly evolving with new tools and machinery that make work more efficient and safer. Workers must stay updated on how to use these innovations to remain competitive.
• Improved Construction Methods: Occasionally, new, more efficient building techniques are developed. Workers must be trained in these methods to ensure projects progress smoothly.

Training programmes play a vital role in developing these skills. Often, construction companies collaborate with the government or other organisations to enhance these initiatives.

Success Stories

Let’s look at some leading companies that understand the importance of continuous learning for their workers.

Bechtel

Bechtel, a global leader in construction, known for projects such as airports and bridges, has its own initiative called Bechtel University. Although not a formal university, it serves as an internal training platform where workers learn essential skills, from team leadership and project management to the latest construction techniques.

Skanska

Skanska is another major construction company committed to sustainable building practices. They educate their workers on environmentally-friendly construction methods, focusing on energy efficiency and the protection of wildlife. Additionally, they incorporate advanced technology and prioritise workplace safety, ensuring that their workers can build high-quality structures while being mindful of the planet.

Turner Construction

Turner Construction operates globally and offers a dedicated training programme known as Turner University. Through this platform, workers develop their leadership skills, refine their construction techniques, and focus on workplace safety. The company’s commitment to continual learning ensures its workers are well-prepared for the challenges of modern construction.

These companies understand that investing in employee development leads to higher quality work, stronger organisations, and safer job sites. It also benefits workers by providing opportunities for growth and skill enhancement.

Embracing Technology and Innovation

The construction sector is undergoing a rapid transformation, with technology and innovation playing a key role in addressing the ongoing labour shortage. The adoption of automation, prefabrication, and digital tools such as augmented reality is helping construction companies reduce their reliance on manual labour while improving efficiency and safety on job sites.

For young people who are passionate about technology, these advancements make construction careers more appealing than ever before. Modern construction projects now involve everything from 3D modelling and drone surveys to smart machinery and digital project management platforms. By integrating these technologies, the construction industry is not only attracting a new generation of tech-savvy workers but also creating fresh career development opportunities for existing staff.

Investing in technology and innovation allows construction companies to stay competitive, deliver higher-quality projects, and address the skills gap caused by the ageing workforce. Embracing these changes is essential for the long-term success of the sector, ensuring that the UK construction industry remains resilient, adaptable, and ready to meet the challenges of the future.

Improving Working Conditions and Perceptions

Making Workplaces Better

Let’s discuss how to make construction jobs more attractive. First and foremost, safety is crucial. When workers feel safe, they are more likely to stay with the job.

It’s straightforward: better helmets, gloves, and training can significantly reduce risks. But it’s not just about preventing injuries; it’s also about providing peace of mind.

In addition, offering competitive wages is an essential strategy to tackle the shortage of construction workers.

However, it’s not just about financial compensation. Benefits such as health insurance, retirement plans, and paid time off can transform a job into a long-term career. When workers see the value in the overall package, they are more likely to stay and build a lasting career in construction.

Not Just Hammers and Nails

Construction work isn’t just about lifting heavy materials and getting dirty. There’s a great deal of exciting technology and innovation involved, from using drones to map out sites to employing virtual reality for planning and design. 

When people see that construction requires as much intellect as physical effort, they begin to view the industry in a new light.

Diversity in Hiring

The construction world is for everyone. By embracing diversity, we welcome a wealth of ideas and perspectives that enhance our work.

Whether it’s different cultural backgrounds or different life experiences, each individual brings something unique to the table. And when people feel included, they’re more likely to join and stay in the industry.

Policy and Regulatory Solutions

Visa Programs and Training Incentives

Addressing worker shortages in construction can benefit greatly from well-designed policies. For example, visa programs for skilled workers allow migrants from around the world to contribute fresh skills and perspectives to local projects.

Source: bsic.co.uk

However, it’s not only about bringing in workers to solve the construction worker shortage problem; it’s also about investing in their development. Training subsidies and tax incentives can make a substantial impact. When businesses receive support for teaching new skills or enhancing existing ones, both workers and companies benefit: workers gain expertise, and companies build a more skilled workforce.

Support for New Construction Methods

Innovation in construction can be a big help, but it needs the right environment to thrive.

Take modular construction, for example. Building parts in a factory and assembling them on-site can save a lot of time and labour. But for this to truly succeed, regulations need to be on board.

Supporting these new methods can make building faster, cheaper, and less reliant on a large workforce.

Saudi Arabia stands out as a prime example of forward-thinking construction initiatives. With ambitious projects like NEOM, the country is focused on building smart, sustainable cities for the future.

Through Vision 2030, Saudi Arabia is shifting beyond oil dependency, making substantial investments in construction and development. This commitment positions the country as a major player in the global construction industry. 

By examining examples like these, we can identify successful strategies and consider how to apply similar approaches closer to home.

Whether it’s through encouraging innovation, offering training incentives, or opening doors to global talent, there are many ways policy can build a stronger, more resilient construction industry.

Conclusion

It’s clear there isn’t a single solution, but rather a range of strategies we can implement together to address the challenge of construction worker shortage.

So, what’s next? Now is the time to put these ideas into action. By combining innovative technology with effective policies, we can build a strong workforce prepared to take on the construction projects of the future.

Let’s roll up our sleeves and get to work on building a better, more sustainable future for the construction industry.

BIO

Sam Everett is the Founder of Evolved Agents–a real estate mastermind that helps agents sell more homes using online ads and a virtual assistant. He provides free training through his YouTube channel, TikTok, and Facebook Page.