A shortage of skilled workers threatens the government’s commitment to build 1.5million new homes by 2029.
A new report from the skills development organisation City & Guilds surveyed employers and training providers as well as employees. The vast majority of respondents (84%) agreed that the construction industry suffers from critical skill shortages.
The shortfall is attributed to a number of factors, including stricter immigration laws, the apprenticeship levies system and the lack of interest of young people.
The latest projections by the Construction Industry Training Board suggest that the industry will need to hire 239,300 workers to meet the demand of 1.5 million homes.
Over half (54%) do not believe that the housing sector has enough workers to achieve this goal. The same percentage doubts the ability of the sector to deliver net-zero housing goals.
The report highlights a number of barriers to both recruitment and retention. Nearly half of companies (46%) cite the increasing cost of doing business as the most significant challenge facing the industry. However, over a quarter (27%) cite a lack interest from younger people.
Construction firms cite local labour shortages as their top hiring issue. This is followed by the need for qualified candidates (36%), then a lack in industry appeal (31%). Construction firms will also be disproportionately affected by stricter immigration laws such as higher Immigration Skills Charges and longer settlement period.
“85% of construction workers say that training is essential for career advancement”
Kirstie Donnelly is the chief executive officer at City & Guilds. She said that the industry could not build 1,5 million homes due to the skills shortage. She said, “We need to change the way we recruit, train and upskill construction talent, using flexible routes, smarter investments and collaboration between government, industry and education.”
The government has made it clear that they want to reduce the reliance on foreign workers. This means investing and nurturing skills are not optional. They’re critical.
The importance of funding for training in creating a skilled workforce is widely acknowledged. 85% say that training is essential for advancing their careers. 59% believe more training would attract more workers to the industry.
City & Guilds research shows that despite the government’s investment promises, there are clear gaps in access to funding. 61% of construction workers say it is difficult to get funded training. To deliver on the government’s investment in skills, it is important to make funded training like the apprenticeship levy flexible and accessible.
Kirstie Donnelly is the chief executive officer at City & Guilds.
Donnelly said: “Recent funding announcements by the government for construction skills are very welcome, but they won’t make a difference without reform of the apprenticeship levy. The rigidity of the levy prevents firms from developing new talent and hinders construction apprentices’ ability to switch between projects. “A small change that introduces greater flexibility can unlock thousands of new opportunities and build a generation of skilled construction workers.”
Nick Maclean said that the government’s ambitious goals are becoming less and less achievable every year because there is a continued underinvestment to encourage people to pursue and stay in careers in the built-environment.
Rics advocates for investments in apprenticeships and vocational education alongside traditional education paths.
City & Guilds will be releasing a report called Foundations for the Future that will take a three-pronged strategy to address the skills gap in construction: recruit new workers, support professionals who are joining the industry, and upskill the current workforce by providing lifelong learning opportunities and continuing development.
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