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Tell us how to solve the construction skills crisis
The Centre for Social Justice has this week launched an inquiry to find out what’s behind the shortage in skilled construction workers, writes Josh Nicholson
Josh Nicholson is a senior researcher at the Centre for Social Justice
This week marks National Apprenticeship Week. Organisers are determined to make it a celebration, but deep problems exist in England’s skills system. Real change is urgently needed.
This is particularly true for the construction sector, where a skills shortage has existed for decades. Despite huge demand for new entrants, roughly 90,000 per year, less than 10,000 people have completed construction-related apprenticeships in each of the past two years, despite more than 20,000 starting. This is a dropout rate of nearly half: not a figure for celebration.
That’s why the Centre for Social Justice (CSJ) has this week launched an inquiry to find out what’s behind the shortage in skilled construction workers.
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None of the so-called “sticking plaster” remedies over the past few years have made much difference. For all the government’s promises to “build, baby, build”, there’s no way that can happen if we don’t have enough builders. And in the face of growing unemployment among young people, particularly those from disadvantaged backgrounds, construction skills open the door to well-paid work and a meaningful career.
The government has inherited a dysfunctional construction sector, which in the words of a landmark review in 2016, was compared to a sick, or even dying, patient. The latest review into the Construction Industry Training Board (CITB) highlighted an unprecedented risk regarding workforce size and skills misalignment. Whitehall is now grappling with the real possibility that the sector may be unable to deliver its housing and infrastructure agenda.
Change is needed and the government already has ambitious plans. The housing secretary has committed to building more homes than in over half a century. The chancellor has announced the most significant upgrade to Britain’s infrastructure in decades, with new reservoirs, railways and airport runways in the pipeline. Last week the prime minister promised to build mini nuclear reactors across the country. But these ambitions will come to nothing without the skills pipeline to make them happen.
For UK housing associations, the pressure is particularly acute. At the same time as the government is pushing for new build investments, housing associations are being required to upgrade their stock to comply with new building safety, housing quality and environmental regulations. London housing associations require 10,000 skilled workers per year just to meet current asset management commitments. This figure doesn’t include labour for new build projects.
The government will have to address the skills shortage to deliver its national housing and infrastructure plans. I believe that in doing so, it has a once-in-a-lifetime opportunity to improve the life chances of those living in the poorest and most disadvantaged communities.
The housing crisis is a severe driver of disadvantage and poverty in Britain today. CSJ analysis has shown that over half of adults worry about the cost, security and quality of their housing, rising to more than three-quarters of the most disadvantaged. Building more genuinely affordable housing is the most effective panacea for the housing crisis.
“At the same time as the government is pushing for new build investments, housing associations are being required to upgrade their stock to comply with new building safety, housing quality and environmental regulations”
Work remains the best pathway out of poverty. A career in construction offers a bright future. The median full-time gross earnings for construction supervisors last year were £42,000, for plumbers £38,000, and for general construction operatives just over £30,000. There is significant earnings potential for construction workers who upskill and gain qualifications.
The UK has an economic inactivity crisis. A staggering 9.3 million people are economically inactive, including 946,000 young people who are not in any form of education, employment or training. CSJ analysis has identified 700,000 people not fit for work who want to get back into employment with the right support. A career in construction could be an exciting prospect if the government saw the people in this group as potential to unlock, rather than a problem to maintain.
Tackling the skills shortage is no easy or quick fix. There are deep-seated problems that will require fundamental systemic change. We are looking to hear from organisations and individuals who want to change the system for good. Our public call for evidence has been launched today and will conclude in March this year. Responses will feed into a new report due to be published in early autumn 2025. Tell us how to fix the construction skills crisis.
Josh Nicholson, senior researcher, Centre for Social Justice
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