Slow apprenticeship levels may threaten Labour’s growth agenda

These figures are expected to rise and will pose a considerable challenge for the government’s ambitious targets, such as the building of 1.5 million new homes over the current parliament.

This problem is exacerbated by the industry’s ageing workforce. Between October 2023 and September 2024, employees in the construction industry above the age of 50 made up 34.4% of the total workforce, compared to 26.8% for the same period in 2005.

While taking steps to attract younger workers is a logical solution, progress has been sluggish. Despite efforts to promote construction careers, the number of government-supported trainees and employees aged 16 to 19 has declined since 2005, as the top chart on p9 shows. Compared to Q2 of 2005, these numbers have dropped to 22.3% and 49.9%, respectively. Since 2014, they have remained stagnant.

Communication gap

One factor contributing to the poor performance may be a perceived lack of awareness regarding the diverse career options within construction. However, a recent survey by the Chartered Institute of Building (see News, p6) indicates a positive shift, with 68% of young people aged between 16 and 24 holding a favourable view of construction careers, and 31% considering entering the sector.

The issue appears to lie in the communication of these opportunities. Almost half of the CIOB survey participants reported a lack of information about the industry in their career advice. This communication gap extends to employers.

A 2024 CITB survey revealed that 16% of employers were unsure ‘how to go about it’ when asked about barriers to offering apprenticeships – a 13 percentage point increase from the previous year (see bottom chart). Furthermore, 53% said there were no apprenticeships available in their line of work, a 45 percentage point increase from 2023, suggesting a failure to communicate successfully available schemes.

Construction’s evolving needs

These findings highlight two critical questions: are we effectively communicating the diverse and engaging career paths within construction, and are apprenticeship programmes adapting to the evolving needs of the industry?

To address these challenges, a dedicated construction skills taskforce under Skills England, as proposed by Turner & Townsend’s UK managing director, Patricia Moore, would be instrumental in identifying, attracting and developing talent pipelines.

Such a taskforce could bridge the communication gap, ensuring young people and employers are made aware of the diverse opportunities and available apprenticeship schemes in the industry. It could also facilitate the adaptation of apprenticeships to align with evolving industry needs, such as advancements in sustainable building and digital technologies.

Only by addressing these key issues can the construction sector begin to mitigate its labour shortage and secure its future workforce.

Barrett Harris is an economist at Turner & Townsend.