UK Construction Sector Faces Critical Shortage of 266,000 Workers by 2026, Reveals Report

Posted on 14 June 2022

According to a comprehensive report conducted by the Construction Skills Network (CSN), the UK's construction sector is facing an impending need for an additional 266,000 workers by the year 2026 in order to meet the ever-growing demands placed upon it. This translates to an estimated requirement of approximately 53,000 new recruits annually. Notably, positions such as carpenters, joiners, and construction managers, as well as various technical roles and office-based support staff, are experiencing the most significant surge in demand. If the projected growth within the industry materialises as anticipated, the total number of construction workers needed by 2026 is estimated to reach a staggering 2.78 million. Tim Balcon, the esteemed chief executive of the Construction Industry Training Board (CITB), acknowledges the daunting task that lies ahead in responding to this demand and underlines the crucial need to both attract and retain top-tier talent.

In recent statistical data released by the Office for National Statistics (ONS), it is revealed that the construction workforce experienced a notable upswing of 1.2% between the months of January and March of the current year. Specifically, the number of workers in the industry rose from 2.16 million in the preceding quarter to 2.18 million, showcasing a promising growth trajectory. The CITB's annual forecast, which delves into the future of the construction sector, foresees significant expansion over the next four years. This growth is expected to be fuelled primarily by increased demand in private housing, infrastructure projects, as well as repair and maintenance work. Consequently, a greater number of workers will be required to fulfil the mounting needs in these areas.

Upon examining regional breakdowns, it becomes apparent that Greater London will necessitate an additional 26,000 workers by 2026, solidifying its position as one of the areas with the highest projected construction outputs in the entire UK. Similarly, the South East region is estimated to require an additional 23,000 workers to meet the anticipated demands. However, it is the South West that faces the most pressing challenge, as a substantial total of 41,950 workers will need to be recruited in order to effectively cater to the burgeoning requirements. This equates to a staggering demand for over 8,000 new hires on an annual basis in the South West alone.

Tim Balcon places great emphasis on the vital role that the construction industry plays in supporting the UK economy, expressing his optimism regarding the projected growth trajectory. Nevertheless, he candidly acknowledges the challenges presented by external factors such as rising energy costs, scarcity of materials, and the resultant inflationary pressures that are currently affecting companies across the sector. Balcon asserts that the construction industry offers promising career opportunities, illustrating the potential for individuals to embark on apprenticeships and eventually ascend to the role of a chief executive, highlighting the extensive career progression available within the field.

To effectively address the ongoing workforce shortage, the report suggests the implementation of various strategic measures. These include actively reaching out to skilled workers who have previously left the industry in order to entice them back into the construction sector, actively recruiting fresh entrants from schools, further education institutions, apprenticeship programs, and higher education avenues, and placing an increased focus on enhancing worker retention within the industry. The CITB has committed to developing "more accessible routes" into the construction sector, as outlined in its recently published Business Plan. This will be achieved by emphasising apprenticeships, providing on-site experiential learning opportunities, and introducing occupational traineeships within further education frameworks.

In an effort to retain employees amidst the prevalent skill shortages, construction firms have resorted to offering record-breaking bonuses to their staff members. A report published by Construction News highlights this trend, indicating that such incentives were disbursed in March of 2022 as a means of maintaining a competitive edge in the industry and retaining valuable personnel.


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