Construction workforce forecast highlights ongoing skills gap

The annual industry forecast from the Construction Industry Training Board (CITB) has highlighted persistent skills shortages, with the industry facing an ongoing need to match growth with recruitment and retention.

CITB’s Construction Skills Network (CSN) 2024-28 report reveals that the UK’s construction output rose by 2% in 2023 – the third consecutive year of growth. It is anticipated that this will grow by an average 2.4% a year between now and 2028.

To meet this growth, an equivalent of more than 251,500 extra construction workers are needed over the next five years, with construction employment rising to 2.75 million by 2028.

The major growth areas are expected to be in private housing, infrastructure, repair and maintenance.

Despite the industry managing to recruit around 200,000 people every year, in 2023, an average of 38,000 vacancies were advertised per month. 

For almost a third (31%) of construction employers, finding suitably skilled staff remains their key challenge, particularly with more older workers retiring and not being replaced. 

Although the construction industry welcomed 200,000 new workers, it saw the loss of more (210,000 workers). 

In response to the challenges, CITB has invested £267 million to help the industry improve diversity, quality and productivity, as well as making construction a more attractive career choice for future generations. The investment will also be used to support the expansion of the New Entrant Support Team (NEST), Industry Impact Fund, and the Employer Network.

Tim Balcon, CITB chief executive, said: “The UK construction industry will continue to grow, but needs more people in the workforce with the right skills. There has always been a demand for workers, and CITB’s CSN report drives home how many are leaving the sector compared to those joining, and the opportunities for employers to address this challenge by recruiting and developing a skilled, competent, and diverse workforce that is able to meet current and future needs. 

“The ‘people pipeline’ is critical to sector growth, but other improvements are also important, including productivity and technological innovation. This is why our commitment to investing over £267 million to ensure the skills system is fit for purpose – now and in the future – is so significant.”

Balcon added: “The past few years have posed many challenges for the industry and as a sector we have shown significant resilience. 2024 and beyond hosts a more positive outlook and through a joined-up approach to recruit, train, develop and upskill talent, CITB will continue to play a crucial role in supporting an industry that is a key driver of the UK economy.”