Lucie Wright is head of careers strategy at the Construction Industry Training Board
Apprentices are the lifeblood of the industry. This is particularly true for SMEs: six in 10 construction apprentices are employed by businesses with fewer than 50 employees. Those employers would be some of the hardest-hit by a failed pipeline of apprentices. Considering that companies with fewer than 10 staff make up more than 90 per cent of the industry, it makes a strong case for supporting apprenticeships.
“We need 150,000 extra workers to meet the housing target – on top of the additional 250,000 needed to meet forecast construction demand”
The reality is that apprenticeship starts have been falling for quite some time. Our research shows that between 2015 and 2023, the total fell by 34 per cent. The biggest decline was among young people, with the number of under-19s starting apprenticeships falling by 41 per cent.
Furthermore, 86 per cent of smaller construction businesses say it is unlikely they will recruit an apprentice in the next 12 months, and only 16 per cent currently employ an apprentice. This suggests that smaller firms are either unable or unwilling to take on apprentices – a trend that could have long-term implications for the industry’s workforce development.
Today, there are approximately 82,000 construction apprentices enrolled in learning across Great Britain. Around 33,000 of these people started their construction apprenticeships in 2023/24. Our estimates show that, to meet industry demand from mainly apprenticeships, the number of starts required each year needs to triple compared with current levels, unless retention and poor completion rates are addressed.
Fixing the apprenticeship pipeline
The government wants to get Britain building again and ministers rightly see the construction industry as key to their plans for growth. This is undoubtedly a positive, but it also brings into focus just how vital it is that we improve the apprentice pipeline.
We’re already working hard to accelerate starts. Working with the government and the National House Building Council, we have jointly invested £140m into Homebuilding Skills Hubs to deliver fast-track apprenticeships and high-quality training.
We estimate that we need more than 150,000 extra homebuilding workers to meet the government’s target of 1.5 million new homes by the end of the current parliament. This is on top of the additional 250,000 workers we need by 2028 to meet forecast construction demand, according to our latest Construction Skills Network report.
This demonstrates an urgent need to improve the pipeline of people entering the industry. However, only one in five (21 per cent) construction businesses employs an apprentice, and just 10 per cent employ more than one.
Our research suggests that while demand is increasing and it’s becoming more difficult to find suitably skilled staff, most employers remain cautious about recruiting apprentices. Nonetheless, assuming no major changes to apprenticeship policy, a period of steady output growth projected over the next four years is likely to result in a corresponding rise in new starters.
Employers that provide apprenticeships do so because they know it benefits their business. Firms that started providing apprenticeships in the past five years thought it was a good way to recruit and train new staff, as well as upskilling existing employees.
Apprenticeships are seen as a key tool to attract and recruit young people. They also offer the opportunity to develop more workforce diversity and inclusion.
Providing targeted support and incentives to these businesses could help increase the number of starts and ensure that more apprentices complete their training. Additionally, efforts to raise awareness about the benefits of apprenticeships and how to implement them could help overcome some of the barriers businesses face.
Meeting the industry’s workforce demands will require a concerted effort to address retention and completion rates, support small firms and raise awareness about the benefits of apprenticeships. By doing so, the industry can ensure a steady pipeline of skilled apprentices and secure its future growth.