Construction will need 216,800 new workers by 2025 to meet demand

Construction has bounced back quicker than expected from the Covid-19 pandemic and the industry will reach 2019 levels of output in 2022.

By 2025, the industry will need to recruit an additional 217,000 new workers just to meet demand. That’s the forecast of the Construction Skills Network (CSN) 2021-25, published by CITB.

According to the CSN, most English regions will experience an increase in construction workers by 2025, with East Midlands (1.7%) and West Midlands (1.4%) forecast to lead demand. Scotland (1.4%) and Wales (0.7%) are also predicted to fare well. The only region forecast to see a slight decline in workforce is the North East (-0.1%).

Major projects such as HS2 are driving growth in some regions and infrastructure (5.2%) and private housing (6.7%) should see the healthiest pace of expansion by 2025. We also expect a growing contribution to come from repair, maintenance and improvement work, as retrofitting existing buildings to meet net zero emissions targets becomes more important.

In terms of annual average recruitment requirement (ARR), the most in demand trades are forecast to be in wood trades & interior fit-out (5,500 per year), other construction professionals and technical staff (5,150), construction managers (3,600) and electrical installation trades and (3,400). There will also be a demand for non-construction, office-based professional, technical and IT support staff (7,850).

However, it’s not all good news - the commercial sector faces significant near-term risks while the public sectors could be impacted by tighter government finances. Despite this, the CSN forecasts UK output to grow annually at an average rate of 4.4% across 2021-2025.

CITB Policy Director Steve Radley said: “It’s great to see construction coming back so strongly and creating lots of job opportunities. We need to adopt new approaches to meet these growing skills needs and deliver these quickly. We are working closely with government and FE to build better bridges between FE and work and make apprenticeships more flexible. We are also making significant investments in supporting work experience that make it easier for employers to bring in new blood.

“We must also make sure that we invest in the skills that will drive change and meet new and growing needs such as Net Zero emissions and Building Safety. We will be announcing plans soon to tackle specific skills and occupations such as leadership and management, digital skills and skills related to energy efficiency.”

The Construction Skills Network (CSN) provides market intelligence and insight for the UK construction industry. The data it produces highlights trends and how the industry will change year-on-year, allowing governments and businesses to understand the current climate and plan ahead for the future.

Key stats from Construction Skills Network:

• The UK average recruitment requirement (ARR) is 4.4%
• The UK construction workforce is due to grow by 1% per year
• There will be an extra 216,800 construction jobs to fill in the UK by 2025
• Private housing work is forecast to grow by £12.1 billion