The UK construction industry is facing one of the biggest workforce challenges in its history, with new figures suggesting that around one million workers will need to be recruited over the next decade to meet growing demand and replace those leaving the sector.
According to the first Annual Skills Report 2026 published by Skills England, construction employers will need an additional 493,000 workers across the industry’s 30 most critical occupations by 2035. This represents a 26 per cent increase in workforce demand at a time when the sector is already experiencing significant recruitment pressures.
The report also highlights a second challenge. Around 595,000 construction workers are expected to leave the industry over the next ten years through retirement, career changes and other departures. When future labour demand and workforce exits are combined, the industry faces the task of attracting approximately one million new entrants to maintain growth and deliver major national projects.
The findings come as the Government continues to pursue ambitious infrastructure plans, including the delivery of 1.5 million new homes by the end of the decade. Achieving these targets will depend heavily on the availability of skilled workers across a wide range of construction disciplines.
Skills England identified 30 priority occupations that will be critical to supporting future economic growth. These include traditional construction trades as well as professional and technical roles linked to housing development and infrastructure delivery. Chartered surveyors, site managers, civil engineering professionals, electricians, plumbers and specialist construction technicians are among the occupations expected to see strong demand.
The report warns that construction employers are increasingly competing with other sectors for skilled workers. More than half of the priority construction occupations face direct competition from industries such as engineering, manufacturing and advanced technology.
Skills England noted that 40 per cent of construction priority occupations are already experiencing critical or elevated levels of demand across the wider economy, making recruitment and retention increasingly difficult.
While there are encouraging signs regarding training provision, concerns remain over whether sufficient numbers of workers will gain the practical experience required to become fully job-ready as the industry faces the sharpest slowdown in five years.
Construction course enrolments increased by 25 per cent between 2021/22 and 2023/24, supported by a growing number of skills bootcamps and vocational training opportunities. However, Skills England cautioned that increasing training numbers alone will not solve workforce shortages despite the truth about earning potential.
The report states that employers must also focus on ensuring learners can progress into real jobs and gain the hands-on experience necessary to develop professional competence.
Skills Minister Baroness Jacqui Smith said the report demonstrates the importance of ensuring workers have the skills needed both now and in the future. She pointed to ongoing apprenticeship reforms and employer engagement as key measures to help people build sustainable careers while supporting economic growth.
For UK workers, the findings present significant opportunities. Demand for skilled trades and construction professionals is expected to remain strong throughout the next decade, potentially creating long-term career prospects, apprenticeships and retraining opportunities for individuals seeking secure employment.
The Workers Union believes that investment in skills, practical training and workforce development will be essential if the UK is to meet its housing and infrastructure ambitions. Construction workers continue to play a vital role in building the homes, transport networks and public facilities that support communities across the country.
As the sector faces unprecedented recruitment demands, employers, training providers and policymakers will need to work together to ensure the next young generation of construction workers is ready to meet the challenge.
