UK construction continues to face recruitment and employee retention challenges in 2025. Sitting back and waiting for changing workforce dynamics to unfold is no longer an option. Directors need to prepare if they are to remain competitive in an evolving industry.
The 2024 Construction Skills Network report, published by the Construction Industry Training Board (CITB), identified that 251,500 extra workers will be required to meet UK construction output by 2028. However, the construction sector remains heavily impacted by a skills shortage and ageing workforce.
The dynamic nature of the construction industry means construction company directors and talent acquisition professionals need to adapt to changing talent landscapes. Strategic workforce planning that helps employers to anticipate and meet workforce needs to avoid project delays and risk, is key to achieving this objective.
In this article, we will explore the current state of the construction workforce, the impact of government policies, and the influence of emerging talent acquisition trends. We will also offer directors strategies to overcome construction recruitment challenges.
The current state of the UK construction workforce
According to the Office for National Statistics (ONS), construction job vacancies rose to 39,000 in January to March 2025, an increase of 4,000 on the previous quarter, and 2,000 more than the same period in 2024. The March 2025 Monthly Construction Update from the Department for Business & Trade reported that 31% of construction businesses with 10 or more employees experienced recruitment difficulties, with half of those businesses reporting a lack of qualified applicants for the roles on offer.
The UK Commercial Construction Market (2024 – 2028) report, published by Construction Insider, identifies three main economic factors that currently impact workforce availability and stability:
- Sluggish GDP growth (expected to grow 1% in 2025 and 1.3% in 2026)
- High interest rates
- High inflation (expected to return to 2% in 2025).
Workers’ rights and changing employment legislation also influence the current state of the UK’s construction workforce. The Employment Rights Bill 2024 – 2025, which is currently making its way through parliament for a phased implementation, outlines plans to introduce workplace flexibility, family friendly rights, changes to Statutory Sick Pay, and increased access to union representation. While these changes will benefit employees and wheedle out unscrupulous companies, they raise additional challenges and operational costs for employers.
Government policies and their implications for construction employers
Government planning reforms are expected to accelerate the construction of new homes, roads and railways, alongside clean energy projects. In May 2025, the government published its Planning and Infrastructure Bill Impact Assessment. It claims that the ‘pro-growth changes to get Britain building’ could benefit the economy by up to £7.5 billion over the next 10 years.
To tackle construction skills shortages, the UK Government launched its Skills Programme, through which it will inject £600m to train 60,000 workers with the ultimate objective of meeting housing building targets.
The aim is to get young people into well paid, high skilled jobs by funding additional training placements and foundation apprenticeships, expanding Skills Bootcamps and establishing Technical Excellence Colleges. Making construction a more attractive career path to young people is expected to reduce the skills gap and address the sector’s ageing workforce issue.
The Building Safety Levy on new homes, which was due for implementation in autumn 2025 but is now delayed to 2026, is expected to raise £3.4bn which will fund building safety remediation after Grenfell.
Emerging Trends Influencing Talent Needs
The required skill sets of construction workers have shifted due to changing regulations and government initiatives.
- Technological advancements now influence what construction employers look for when recruiting. Digital construction methods have transformed all project stages from design to construction and operation. AI, digital twin technology, Building Information Modelling (BIM), robotics, drones and data analytics are some emerging trends that drive employers to attracting workers with digital skills, or generating expertise through apprenticeships, training or upskilling.
- Sustainable building practices are also driving change in recruitment strategies. Expertise in energy efficiency and environmental compliance is becoming more critical to the success of sustainable build projects, and the progress of the industry as a whole. The emergence of ‘green collar’ jobs is an industry response to this shift in focus. Commentary in a recent Construction Enquirer article claims a lack of green collar construction workers is causing wages to spiral, with some earning as much as £134,000 a year.
- While technical skills have always been considered central to successful construction projects, there is a growing emphasis on soft skills and adaptability. Soft skills enhance communication, teamwork, leadership and problem solving, all of which make workforces more adaptable, with fewer costly mistakes and project delays.
- Continuing professional development (CPD) is increasingly recognised for its impact on retaining and developing construction workforces. Updating skills, embracing new technologies, and expanding knowledge of regulations and best practice benefits the employer, workers and the wider industry.
- Diversity and inclusion should now be central to construction recruitment strategies. According to the Construction Industry Council, “Achieving diversity, equality and inclusion within the construction industry will help ensure that everyone can share the benefits of – and contribute to – a prosperous sector.”
However, the industry faces a diversity problem. Just 5.4% of construction workers are of a Black, Asian or ethnic minority background. Women account for just under half of the total UK workforce, but only 11% of the construction workforce and just 1% of workers on site.
While the exact number of LGBTQ+ workers in construction is unclear, the CIOB (Chartered Institute of Building) says 60% of LGBTQ+ employees have been subjected to homophobic or derogatory terms at work.
The CIOB also states that disabled employees only make up 6% of the workforce.
Strategies for directors to prepare for the second half of 2025 and beyond
To overcome the skills shortage, an ageing workforce, policy changes and increasing focus on technology and sustainability, a proactive and strategic approach to talent management is essential. The following strategies are recommended to bolster your recruitment strategy for the rest of 2025 and beyond:
- Collaborate with educational institutions to build talent pipelines
- Implement flexible hiring practices to attract a broader range of candidates
- Utilise data, and leverage seasonal demands such as educational holidays, to forecast workforce needs and plan accordingly
- Assess your current workforce strategies and make necessary adjustments to remain competitive.
Strategic Resourcing can help
The Strategic Resourcing platform designed to help construction employers hire smarter. Subscribe to the Strategic Resourcing newsletter for the latest insights into construction talent trends. From our website, you can also download a wealth of related resources, including our guide to the Employments Rights Bill 2024 – 2025.
