Hiring challenges are hindering efforts to bridge skills gaps

The engineering construction industry (ECI) plays a crucial role in helping the UK meet its net zero ambitions, spanning sectors such as oil and gas, nuclear, power generation, renewables, chemicals, food and drink, pharmaceuticals and water treatment.

The ECITB’s Workforce Census is vital, therefore, in helping the industry to understand labour market dynamics, anticipate workforce challenges and develop strategies to address skills gaps across Great Britain.

Released this week, the census offers a comprehensive overview of the ECI workforce, having gathered data on 74,609 workers, 162 employers and 1,621 locations. 

This data will feed into the ECITB’s Labour Forecasting Tool, which when launched in November 2023 revealed that thousands of extra skilled workers could be needed in the industry in the next five years amid a boom in project activity.

Among its findings, the report reveals that 71% of employers are experiencing challenges in hiring workers, up from 53% the last time the census was carried out in 2021. 

It highlights that electrical engineers, pipefitters, riggers and design technicians are among the hardest-to-fill vacancies.

Some of the primary reasons cited include a shortage of qualifications and skills among candidates, a mismatch between candidate expectations and what employers can offer, a limited applicant volume, mobility and location issues, and increased competition among employers and other sectors.

The report also highlights that there is an encouraging increase in the number of people under 30 now working in the industry.

However, at 16.8% of the workforce, this group is not yet sufficient to counterbalance the impact of the upcoming wave of possible retirements, with the share of workers over 60 increasing to 14.7%.

The census highlights craft roles as a particular area of concern, with the average worker tending to be older than the industry average. For example, 30% of platers, 24% of welders and 20% of pipefitters are over 60.

The hiring challenges are predominantly for skilled workers where engineering construction companies are competing to recruit from the same pool of experienced workers.  

But we also need to increase the pool of people joining the industry – training new recruits, encouraging people to embark on a career in the ECI, and increasing training provider capacity to grow new entrant numbers.  

That’s why almost half of the £87m committed to support the industry in the ECITB’s three-year strategy (2023-2025) has been allocated to supporting new entrants, including through apprenticeship and graduate grants, scholarship and Work Ready programmes.

The ECITB’s Regional Skills Hub funding is designed to boost training provider capacity and grow new entrant numbers in the ‘industrial cluster’ hot spots and other major engineering construction centres of activity that are at the heart of the UK’s decarbonisation agenda.

Only through bringing in new talent, training and upskilling existing workers can the industry benefit from the skilled workforce it needs both now and in the future. 

The ECITB will continue to support employers to invest in their talent pipeline – helping the industry to grow the number of apprenticeships and graduate opportunities, developing alternative entry pathways and funding quality training to upskill and reskill the workforce. 

By investing in both the new and existing workforce, the industry has a fighting chance of closing the skills gap – and this mission is one that the ECITB remains fully committed to.

Find more information about the ECITB Workforce Census here.