WORCESTER, England, Dec 13 (Reuters) – The British government’s goal of building 1.5 million homes by 2029 could be threatened by a severe shortage of construction workers, industry leaders warned on Friday.
Prime Minister Keir Starmer’s Labour Party, which won July’s election with promises to boost growth and improve infrastructure, has pledged to address the housing crisis. However, construction executives and developers say the plan is unattainable unless worker and skills shortages are urgently addressed.
Colin Cole, CEO of Lioncourt Homes, expressed concern over the challenges, stating, “We haven’t really got enough workers to build the volume that we want to build now, let alone think that we’re going to get to 1.5 million homes over the next five years.”
The construction industry in Britain is facing several obstacles, including a significant aging workforce, with many skilled workers nearing retirement. The Construction Products Association predicts that 500,000 workers will retire within the next 10 to 15 years, a loss of 25% of the current workforce.
The shortage has been exacerbated by the impact of Brexit and COVID-19. Since the 2016 Brexit vote, Britain has struggled to fill vacancies in various sectors, including construction. The sector also lacks younger workers, with fewer entering training programs, and only a quarter of those completing construction courses find employment.
Efforts are underway to address the skills gap, including the establishment of 32 skills hubs aimed at training 5,000 new apprentices annually by 2028. However, the number of apprenticeships still falls short of the industry’s needs, with only 33,600 apprentices on long-term training programs, compared to the 50,000 needed each year to maintain activity levels.
Another possible solution is increasing diversity within the workforce. Currently, just 6% of workers in the construction industry come from Black, Asian, or ethnic minority backgrounds, and only 15% are women. Expanding diversity could help fill the gaps.
Immigration could also play a role in addressing the shortage. Prior to Brexit, EU workers had unrestricted access to the UK labor market, but the current system for sponsoring foreign workers is complex, costly, and time-consuming, which has deterred many employers from utilizing it.
Housing Minister Matthew Pennycook emphasized the importance of training the domestic workforce, stating, “We’re not looking at easing restrictions, but we will be reliant in part on some foreign workers… we’ve got to do more to train and skill up our own people to work in this industry.”