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The UK Construction Business and Training Landscape in 2025: Trends, Challenges and What’s Next?

Construction Skills key figures graphic; 239,300 new recruits needed by 2029; UK Gov £600 million investment; Rising age of the workforce; 34% of employers reporting skills gaps

The UK construction business industry stands at a crossroads in 2025. On one hand, the sector faces growing demand for homes, infrastructure, and green energy projects as the country works towards ambitious housing targets and net-zero commitments. On the other hand, it grapples with a persistent skills shortage that threatens to slow progress and increase costs.

The numbers paint a clear picture: the UK construction workforce is projected to reach around 2.75 million by 2029, but achieving this requires a dramatic acceleration in training and recruitment. The Construction Industry Training Board (CITB) estimates that the sector will need an additional 47,860 workers each year between 2025 and 2029 – the equivalent of 239,300 new recruits over the next five years.

How do we tackle this?

To meet this challenge, the government and industry bodies have begun rolling out reforms on an unprecedented scale. Initiatives such as Technical Excellence Colleges, expanded Skills Bootcamps, and increased apprenticeship funding are set to reshape how people train for and enter the sector. In parallel, CITB and other partners are investing in industry placements, SME support programmes, and new skills hubs to get learners “site-ready” and ensure training leads directly to jobs.

But while investment and innovation are underway, the sector still faces fundamental questions: Will these measures be enough to tackle the skills gap? Can the industry overcome structural barriers like rising costs, recruitment challenges, and an ageing workforce? And how can training evolve to meet the demands of digitalisation, sustainability, and modern construction methods?

This article explores the current training landscape, the trends shaping it in 2025, the challenges holding it back, and what’s next for employers, training providers, and policymakers aiming to build the workforce of the future.

The State of the UK Construction Business Workforce in 2025

Two construction workers stand with equipment

With around two million currently employed in the UK construction business workforce, it represents one of the largest components of the UK economy, underpinning everything from housing and transport to schools, hospitals, and energy networks. However, the demand for construction is only growing.

According to CITB forecasts, the workforce will need to grow to around 2.75 million by 2029 to meet national infrastructure and housing needs. Achieving this will require a sustained recruitment effort, with an estimated 47,860 additional workers needed annually between 2025 and 2029, a net requirement of 239,300 extra workers over five years.

It’s not only the number of workers that needs to increase steeply over the next few years, but also the skills of the UK construction business workforce. Digital skills, sustainability expertise, and modern construction methods are becoming increasingly important. With the sector being expected to deliver 1.5 million new homes in a 3.4% sector growth per year, alongside major investments in transport, energy, and water infrastructure, there needs to be a huge drive in the amount of skilled workers to avoid delays, rising costs, and missed targets.

Compounding this issue is the construction sector’s ageing workforce and the impact of early retirements – a trend accelerated by the pandemic. With 35% of workers over 50, but only 20% are under 30, the industry needs an injection of young workers to revive it. Reduced access to overseas labour post-Brexit has also squeezed the talent pipeline, while persistent perceptions about construction being “dirty, dangerous, and male-dominated” deter some young people and women from joining.

As Tim Balcon, CEO of CITB, has stressed:

“If we don’t train more people and ensure that they can join the construction industry, we will not have the skilled, capable, productive workforce needed to build the homes, hospitals, schools, power and water networks of the future.”

2025 marks a pivotal moment for construction courses and training: the reforms, funding, and initiatives launched now will determine whether the sector can meet its workforce needs over the next decade.

 

What Major Trends Are Reshaping UK Construction Businesses and Training?

The UK construction training landscape in 2025 is undergoing one of the most significant transformations in decades. Driven by government reforms, industry investment, and the changing nature of construction work itself; several key trends are shaping how the sector attracts, trains, and retains its future workforce.

  1. Government Investment and Reform

In recent years, the UK government has launched an ambitious package of reforms aimed at tackling the skills shortage head-on. At the heart of this effort is a £600 million investment into construction skills, announced in 2024 and rolling out through 2025 and beyond.

Key measures include:

  • Technical Excellence Colleges – new institutions designed to deliver high-quality, industry-focused training.
  • Expanded apprenticeships and foundation routes – helping learners access well-paid, skilled roles more quickly.
  • Skills Bootcamps – fast-track training programmes responding to immediate labour market needs.
  • 40,000 industry placements funded annually – with £100 million from government and £32 million from CITB, ensuring learners at NVQ, BTEC, T-level, and advanced apprenticeship levels gain real, “site-ready” experience.
  • An £80 million employer training fund – supporting companies to develop bespoke training aligned to their skills gaps.

The government’s ambition is clear: to not only train thousands of new bricklayers, electricians, carpenters, and engineers but also to create clear, attractive pathways into construction for young people and career changers.

Chancellor, Rachel Reeves said:

“We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail, and energy infrastructure.

But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”

The establishment of the Construction Skills Mission Board in 2025 marks another step forward, bringing together government, employers, and training bodies to align efforts and share responsibility for building the workforce of the future.

  1. Employer-Led Construction Training and SME Support

While government funding provides the foundation, employers themselves are increasingly driving innovation in training. One notable example is the expansion of CITB’s New Entrant Support Team (NEST) programme, which has doubled in size to help small and medium-sized enterprises (SMEs) recruit, engage, and retain apprentices.

SMEs make up the vast majority of the construction sector, yet they often lack the resources of larger firms to develop in-house training schemes. By providing guidance, funding support, and access to training networks, initiatives like NEST aim to ensure smaller employers can play a full role in developing talent pipelines.

This shift towards employer-led training reflects a growing recognition that training must be closely aligned to real job opportunities. Too often in the past, learners have completed qualifications without clear routes into employment. Bespoke, employer-designed programmes help bridge this gap.

  1. Sustainability and Green Skills

The drive towards net zero by 2050 is another powerful force influencing training needs. From retrofitting older buildings to installing low-carbon heating systems and using sustainable materials, construction workers increasingly require green skills to meet environmental targets.

Government funding and employer initiatives are beginning to reflect this priority, with new training courses, modules, and apprenticeships emerging in areas like energy efficiency, renewable technologies, and sustainable construction methods.

As demand for green infrastructure grows, workers trained in these areas will be in especially high demand — and training providers are under pressure to keep pace.

What Challenges Face Trainers and Employers in Construction Businesses UK?

Despite unprecedented levels of investment and reform, the UK construction industry continues to wrestle with deep-rooted challenges in training, recruitment, and workforce development. These issues are long-standing but have intensified in recent years, creating a perfect storm for employers and training providers alike.

Construction woman smiles holding clipboard

  1. The Construction Skills Gap

The skills gap remains one of the most pressing challenges facing the construction sector. According to CITB’s Skills and Training in the Construction Industry report, 34% of employers in 2021 reported skills gaps, up from just 14% in 2018. While slightly less acute than in sectors like professional services, this represents a significant leap in a short period.

Key gaps include:

  • Job-specific and trade skills – highlighted by 42% of employers with skills gaps.
  • Qualifications – cited by 23%, particularly in NVQ-level competencies.

Interestingly, while employers identify these gaps, self-employed construction workers tend to see themselves as “fully proficient,” with only 8% admitting to any skills gaps in 2021 (down from 19% in 2018). This suggests a mismatch between employer expectations and individual perceptions of readiness.

The causes link with other difficulties in the industry:

  • An ageing workforce combined with early retirements accelerated by COVID-19.
  • Fewer skilled workers entering from overseas post-Brexit.
  • A lack of women and younger people joining the sector.
  • Ongoing underinvestment in apprenticeships and training pathways.

Ultimately, without a robust pipeline of new entrants, the industry faces a growing shortfall in the skilled trades needed for housing, infrastructure, and green construction projects.

  1. Economic Pressures and Rising Costs

Economic factors are also squeezing training budgets. From April 2025, the employer National Insurance rate will rise from 13.8% to 15%, part of a wider drive to raise £25 billion annually for public services. For UK construction businesses — especially SMEs with tight margins — this represents a significant increase in payroll costs.

At the same time, the industry is grappling with:

  • High energy and material costs
  • Inflationary pressures
  • Interest rate volatility
  • Cautious clients delaying or scaling back projects

As training is often one of the first areas to face cuts when budgets tighten, the sector risks a paradox: training is more essential than ever, yet companies feel financially constrained to deliver it.

  1. Recruitment and Retention Struggles

Recruitment challenges compound the problem. Construction continues to battle a persistent image problem, often seen as physically demanding, male-dominated, and offering limited career progression.

This perception makes it difficult to attract:

  • Young people seeking purpose-driven, technology-enabled careers.
  • Women and underrepresented groups who remain a small minority in construction roles.

Even when learners complete training, there’s the issue of the “leaky pipeline” — too few transition into long-term employment within the sector. CITB’s expanded placement programmes aim to address this, but cultural and structural barriers remain.

  1. Policy and Industry Disconnects

Finally, there is an ongoing disconnect between training provision and real job opportunities. The Apprenticeship Levy, introduced to fund training, has been widely criticised as bureaucratic and ineffective, with calls for urgent reform.

Employers also note that while government initiatives provide funding and frameworks, long-term workforce planning remains inconsistent. Short-term training schemes may deliver quick wins, but without sustained collaboration between government, industry bodies, and employers, skills shortages risk persisting well beyond 2025.

 

Opportunities and What’s Next

Construction woman looks at blueprints

While the challenges facing construction courses and training are significant, 2025 also presents an opportunity to reimagine how the sector attracts, trains, and retains talent. With government funding, employer initiatives, and new technologies converging, the next few years could lay the foundation for a stronger, more inclusive, and future-ready workforce.

  1. Building More Inclusive UK Construction Businesses

One of the greatest opportunities lies in broadening the talent pool. Women currently make up a small fraction of the construction workforce, while young people often perceive the sector as outdated or lacking career prospects. Changing this narrative is essential.

Key approaches include:

  • Targeted recruitment campaigns highlighting modern construction careers, from digital design to sustainable engineering.
  • Role models and mentorship programmes to showcase diversity and success stories.
  • School and college outreach, ensuring construction is presented as a career of choice rather than last resort.

By making UK construction businesses more inclusive and appealing to underrepresented groups, the industry can tap into a wider range of skills and perspectives.

  1. New Pathways into UK Construction Business

Traditional training routes remain vital, but there is growing recognition of the need for flexible, accessible pathways into the industry. Initiatives already underway include:

  • Skills Bootcamps offering intensive, job-focused training for rapid entry into the workforce.
  • Foundation apprenticeships for those not ready for full-time work or study commitments.
  • On-the-job learning through CITB-funded placements, helping learners become “site-ready” before employment.
  • Support for SMEs to host apprentices through programmes like the expanded New Entrant Support Team (NEST).

By offering multiple entry points, the sector can attract a broader range of learners — from school leavers to career changers — while addressing the “leaky pipeline” problem that sees many learners fail to transition into full employment.

  1. Long-Term Collaboration and Workforce Planning

Finally, the creation of the Construction Skills Mission Board signals a shift toward greater collaboration between government, employers, training providers, and industry bodies like CITB.

For training reforms to succeed, this collaboration must focus on:

  • Aligning training provision with real job opportunities, ensuring qualifications lead directly to employment.
  • Investing in long-term workforce planning, rather than short-term fixes.
  • Sharing best practice across the sector, so SMEs benefit as much as large contractors from new initiatives.

As Tim Balcon of CITB notes, success depends on a “long-term commitment from construction employers, government, training providers, and other partners” to ensure investment in training leads to a skilled, productive workforce.

 

Conclusion

As 2025 unfolds, any UK construction business faces a defining moment. With nearly 240,000 additional workers needed over the next five years, the stakes could not be higher. The sector must not only fill its immediate labour shortages but also prepare for a future shaped by digital technologies, sustainability demands, and changing workforce expectations.

Government investment — from Technical Excellence Colleges to Skills Bootcamps and industry placements — provides a vital foundation. Meanwhile, industry initiatives like CITB’s New Entrant Support Team and employer-led training programmes are helping to align training provision with real job opportunities. Yet, as persistent skills gaps, rising costs, and recruitment barriers show, reforms and funding alone will not be enough.

The construction sector needs a cultural shift as much as a technical one. Building a more inclusive workforce, embracing flexible training pathways, and using digital tools to modernise learning are all essential steps toward creating a training system that genuinely prepares people for the jobs of the future.

Ultimately, the industry’s ability to deliver the homes, infrastructure, and green energy projects of tomorrow depends on the decisions made today. By seizing the opportunities presented in 2025 — and addressing its challenges with urgency and collaboration — construction can build not just the physical structures Britain needs, but the skilled, sustainable workforce needed to deliver them.

 

How can 3B Training help to fill the skills gap?

3B Training’s accredited courses, apprenticeships, and bespoke training solutions are designed to equip learners with the practical skills and confidence they need to succeed on site and beyond. By working closely with employers, we ensure our training is relevant, flexible, and aligned with the realities of today’s construction environment.

If you’re ready to future-proof your workforce and keep your business moving forward, explore our courses and discover how 3B Training can support your journey.

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