Building a workforce for the future

The aim is to create good jobs in the sector in order to deliver on the government's housing and infrastructure commitments – which include the building of 1.5 million homes over this parliament and the delivery of the government's 10-year infrastructure strategy.

The government acknowledged in its Plan for Change that this is an "ambitious milestone for change" which will require "a rate of housebuilding and infrastructure construction not seen in over 50 years".

But how achievable are the government's plans given workforce shortages in the construction industry? 

The number of people employed in construction has declined by 10.8% since the pandemic, and an ageing workforce does little to help reverse this decline.

The latest Office for National Statistics figures show that there are more than 30,000 job vacancies in the sector.

And there are reports from employers that more than half of these vacancies can't be filled due to a lack of required skills – clearly indicating a serious issue that needs addressing. 

Add to this the Construction Workforce Outlook published by the Construction Industry Training Board (CITB) – which states that the UK construction industry needs to recruit the equivalent of 239,300 extra workers over the next five years – and it becomes clear that serious intervention is needed to deal with the skills shortage in the industry.

What's the government doing?

The government is providing £100m of new investment to fund 10 new ‘technical excellence colleges’ and £165m of new funding to help colleges deliver more construction courses. 

It is also expanding Skills Bootcamps in the construction sector, with £100m of funding to ensure that new entrants, returners or those looking to upskill within the industry will be able to do so. 

In addition, all Local Skills Improvement Plan (LSIP) areas will benefit from £20m to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, so that they can use this experience to train the next generation of workers.

The construction sector is one of the sectors benefiting from the government's new foundation apprenticeships, launched in August.

Employers taking on a foundation apprentice will be provided with £2,000 for each apprentice they take on and retain, and the training costs will be fully funded through the new Growth and Skills Levy. 

As part of its efforts to achieve its plans, the government has pledged a £625m investment to tackle skills shortages in the construction industry, which is expected to create up to 60,000 more jobs for engineers, electricians and joiners by the end of the parliament. 

More than 40,000 industry placements will be funded through a further £100m from the government, alongside a contribution of £32m from CITB. 

CITB will also double the size of its New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging and retaining apprentices.

Looking to the future

The various measures being put in place by the government will attract more people into construction jobs, but there will be an onus on employers to promote the industry as one in which people want to work and grow their careers. 

Employers will also have to be prepared to adapt and look to the future. The world of work is evolving and new skills will be required in the years to come.

Technology and artificial intelligence (AI) can be used by the construction industry to plug skills gaps, and these solutions should be explored and embraced.

For example, AI can be used to automate repetitive tasks, enabling workers to be more productive. It can be deployed across a range of areas to enhance design, project planning, safety and build quality.

Integrating AI and improving efficiency, safety and overall project outcomes is one way of helping to tackle workplace shortages.

Many businesses are beginning to use AI-driven project management software to help reduce errors and improve efficiency. Another area under development is 3D printing, as well as the use of robotics for on-site tasks.

Training will be key so that workers can use innovations such as AI effectively on construction projects. 

It's clear that the way work is carried out is evolving to make it more streamlined and efficient.

Employers operating in the construction sector should be ready to adopt AI and automation as a way of preparing for the future, while also ensuring that their workers are equipped with the skills to harness these technological advances.

Rebecca McGuirk is head of employment and pensions; Nicola Ihnatowicz is employment and pensions partner; and Anna Scott is employment and pensions professional support lawyer at Trowers & Hamlins.