City and Guild urge government to address construction skills gaps to reach new homes target of 1.5 million – Mortgage Strategy
The City and Guild calls on the government to take “immediate and strategic action” to address the critical skills shortage in the construction sector, after a previous survey showed that three-quarters of construction companies were working to recruit the skilled workers they needed.
The survey found that 84% of respondents believed the industry was facing a critical skill crisis, and 54% said whether the industry could achieve the government’s housing or net zero goal.
It shows that to meet the government’s 1.5 million-suite target, the housing construction sector will need to recruit 161,000 workers. This represents a 30% increase in the current labor force.
However, it stresses that the industry is losing an estimated 50,000 skilled workers each year due to aging employees and a lack of new entrants.
Data show that rising costs (46%) is the main obstacle to recruitment within the industry, followed by local labor market challenges (41%).
The need for employees ready to take up employment (36%) is another obstacle, while 26% say young people lack interest, and 28% say stricter immigration laws are also creating problems.
The City & Guild Report noted that 85% of employees believe that training is crucial to career development, while 59% believe that more training opportunities will attract new talent.
However, 61% say it is difficult to get funded training, which indicates a large gap in the provision.
Although the industry is growing with new technology and environmental standards, only 51% of workers are trained in sustainable construction, although nearly half of employers report shortages in this area.
City & Guilds propose a three-pronged approach to narrowing the gap.
This includes improving perceptions of the industry and building skills embedded in the education system, and providing accessible training for those entering the industry from other industries.
Furthermore, it recommends promoting lifelong learning and ensuring training equipment and funds meet modern needs, including green skills.
“To reach the government’s ambitious housing and net zero goals, we need a basic reset in attracting, training and skilled talent across the construction sector,” said Kirstie Donnelly, CEO of City & Guilds.
“This means stronger collaboration between industry, education and government through targeted investments and flexible training routes.”
