{"id":152712,"date":"2025-07-03T11:36:24","date_gmt":"2025-07-03T10:36:24","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=152712"},"modified":"2025-07-03T11:36:24","modified_gmt":"2025-07-03T10:36:24","slug":"76-construction-businesses-struggling-hire-skilled-workers-putting-1-5m-new-homes-target-doubt","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/76-construction-businesses-struggling-hire-skilled-workers-putting-1-5m-new-homes-target-doubt\/152712\/","title":{"rendered":"76% of construction businesses struggling to hire skilled workers, putting 1.5m new homes target in doubt"},"content":{"rendered":"

New research from City & Guilds has found that more than half of business leaders (54%) lack confidence that the construction sector can meet government housing targets due to skilled workforce shortages and rising costs<\/h2>\n

A new report by City & Guilds surveying employers, training providers, and employees, has found that 76% of construction firms are struggling to recruit the skilled people they need, with 84% agreeing that the industry is suffering from critical skills shortages.<\/p>\n

More than half (54%) of employers do not think that the sector has the workforce it needs to meet this target, with the same percentage also putting into doubt the sector\u2019s ability to deliver net zero housing goals.<\/p>\n

This comes as the latest outlook<\/a> from the Construction Industry Training Board (CITB) suggests the industry needs to recruit 239,300 by 2029 to be able to meet the projected demand for the 1.5 million homes target.<\/p>\n

The report identifies multiple barriers to recruitment and retention of skilled construction workers<\/h3>\n

While the rising cost of doing business is identified by nearly half (46%) of businesses as one of the biggest overall challenges the industry is facing, over a quarter (27%) point to a lack of interest among younger people.<\/p>\n

When it comes to hiring, local labour market shortages are flagged as the top recruitment issue by 41% of construction firms, followed by their demand for job-ready hires (36%), and a lack of broad industry appeal (31%). Stricter immigration laws, such as a higher Immigration Skills Charge and longer settlement periods, are also set to disproportionately impact construction – as 28% of businesses cite this as a barrier to recruiting the people they need.<\/p>\n

Kirstie Donnelly MBE, chief executive officer of City & Guilds: \u201cWe can\u2019t build 1.5 million homes without the people to deliver it. We urgently need to reset how we attract, train, and upskill talent across the construction sector, with flexible routes, smarter investment, and collaboration between industry, education and Government.<\/p>\n

\u201cWith the Government signalling a clear intention to reduce reliance on overseas workers, investing in and nurturing skills isn\u2019t optional \u2013 it\u2019s critical.\u201d<\/p>\n

Increasing provision and access to funded training is key to tackling the skills shortage<\/h3>\n

Funded training is widely recognised as essential to creating a home-grown skilled workforce: 85% of employees say training is important for career progression in the construction industry, and 59% say more training provision would help the construction industry to attract more workers.<\/p>\n

While the Government has promised investment, City & Guilds\u2019 research highlights clear gaps in funding access – with 61% of employees saying it\u2019s difficult to secure funded training in the construction sector. Making funded training such as the apprenticeship levy more flexible and available will be key to delivering on the Government\u2019s investment in skills.<\/p>\n

Kirstie Donnelly continued: \u201cRecent Government funding announcements for construction skills are extremely welcome, but this won\u2019t move the needle without reform to the Apprenticeship Levy. As it stands, the Levy\u2019s rigidity blocks firms from getting new talent job-ready and makes it hard for construction apprentices to move between projects while continuing their training. A small change to introduce greater flexibility could unlock thousands of opportunities and help build a new generation of skilled construction workers.\u201d<\/p>\n

Nick Maclean OBE RD FRICS, acting RCIS president said: \u201cThe Government\u2019s ambitious targets become less and less achievable each year that there is continued underinvestment in encouraging people<\/a> into pursuing, and staying in, careers in the built environment.<\/p>\n

\u201cCareer returners and switchers hold untapped potential if funding models are set up to suit later stages of life, with RICS also advocating for investment in vocational options and apprenticeships alongside conventional education pathways.\u201d<\/p>\n

City & Guilds\u2019 upcoming report, Foundations for the Future, recommends a three-pronged approach to tackle the construction skills gap:<\/p>\n