The UK construction skills shortage: causes, challenges, and solutions for the industry

Table of contents:

• Introduction: The growing skills crisis in UK construction
• The construction skills gap: key facts and figures
• Bridging the UK skills gap: apprenticeships and training
• Diversity and inclusion: expanding the construction workforce
• The impact of Brexit and Covid-19 on the construction sector
• The future of UK construction: growth, digital skills and sustainability
• The Skills Shortage Webinar

Introduction: The growing skills crisis in UK construction

The UK construction industry is facing a severe skills shortage, with over 140,000 job vacancies stalling essential housing and infrastructure projects. Despite skilled trades - such as bricklaying, plumbing, and roofing - comprising 10% of England’s workforce, demand far exceeds supply.

By 2035, over one-third of construction workers will retire, worsening the crisis. This shortfall puts the UK government’s ambitious 1.3 million new homes target at serious risk. With over 159,000 children living in temporary housing, urgent action is needed to boost recruitment, training, and retention in the construction sector.

In partnership with the University of Cambridge, we’re launching our latest research project: Construction and Building Trades: The Skills Horizon. This report examines the current challenges facing the sector and solutions, such as those we’re implementing at PfP Thrive, that can help address our skills shortages and futureproof our industry.  

Read the full report

Data referenced in this report and on this page was accurate as of the time the research was conducted.

Bridging the UK skills gap: apprenticeships and training

Investment in apprenticeships and skills training is crucial for solving the workforce crisis.

Key apprenticeship and training initiatives

• Places for People’s own academy has trained 650+ apprentices, with more joining in Autumn 2025. With more to come through PfP Thrive

• Skills England and Growth and Skills Levy: Government-backed funding to expand apprenticeship programs.

Places for People is proud to be part of a wider effort across the sector to address the UK’s construction skills shortage, contributing to a shared, long-term solution through training, support and real-world opportunities.

Despite this, fewer than 50% of apprentices complete their training, revealing a major retention issue. Solving the skills shortage isn’t just about increasing starts, it’s about ensuring apprentices can successfully finish and thrive in their roles.

Expanding construction skills hubs and on-site experience programs will ensure sustainable industry growth and create long-term career opportunities.

Government action: policy reforms to support construction growth

The UK government is prioritising construction workforce development through several initiatives:

• Growth and Skills Levy – An updated Apprenticeship Levy to increase training investment.

• 30+ Homebuilding Skills Hubs – New training centres across the UK.

• Get Britain Working White Paper (Nov 2024) – A major commitment to creating thousands of new construction jobs.

Collaboration between businesses, policymakers, and training providers is essential to closing the skills gap – not just in construction, but across the wider housing sector. From trades and retrofit to leadership, housing management and customer service, developing skills at every level is key to building resilient, thriving communities.

Solutions to improve diversity in construction

• Diversity-focused apprenticeships aim to break down entry barriers.

• Targeted training and workplace inclusion programs will help create a more representative workforce.

A diverse workforce is an ethical priority but also absolutely essential for meeting future construction demands.