Checkatrade has reported that 1.3 million new skilled workers and 350,000 apprentices are needed over the next decade to meet government targets and demands on the construction, home improvement and repair industries.
The Skills Trade Index, produced in conjunction with Capital Economics, reported that with an improving economy, lower interest rates, and accelerated planning processes, the home improvement and repair sector is forecast to grow by 40% over the next ten years, contributing 2.4% to the UK’s GDP.
However, this promising growth is at risk due to a severe skills deficit, which is exacerbated by an ageing workforce as 35% of current workers are over 50 and many plan to retire within the next decade.
To address the replacement of retirees, the sector will need to recruit a total of 377,000 new workers, coupled with the additional 734,000 needed just to meet current demand in the home improvement, repair and construction sectors.
Moreover, the report noted that 29% of construction sector jobs will require new skills to support the UK’s transition to net zero. Under Labour’s new Growth and Skills Levy, employers can spend a portion of their contributions on partial training rather than a full apprenticeship. Checkatrade recommends that more awareness of the changing landscape to come under the Levy is required in order to incentivise employers to support this training.
However, despite demand for apprenticeships outstripping supply by a ratio of three to one – meaning the UK lags far behind other comparable economies in this space – the Trade Skills Index finds that less than one-third of apprentices who start their training go on to complete it, hindering efforts to close the skills gap.
Jambu Palaniappan, CEO at Checkatrade, stated: “The home improvement and repair sector is a crucial one – not just when it comes to delivering meaningful results against our government’s ‘Building Better’ plans, but also in order to shore up and future-proof existing housing stock. The potential benefits for both individual homeowners and the wider economy are immense. However, this vision of modern, energy-efficient homes that are fit for 21st-century Britain will remain out of reach unless we tackle the critical trade skills gap head-on.
“Our Trade Skills Index identifies problems not only in recruitment of apprentices, but in retention. I support Lord Richard Layard’s recent call for an overhaul of the UK’s post-18 education system to include a guaranteed apprenticeship for everyone with the requisite qualifications. I believe this would also go some way to helping to attract a more diverse range of talent to these programmes, which I think is key to the future of our industries.
“The UK can no longer afford to be a passive observer when it comes to skills development. It is imperative that we take decisive action now to ensure we have the skilled workforce needed to realise this transformative opportunity, and ensure that UK trades do not get left behind.”
Andrew Evans, deputy chief economist at Capital Economics, said: “Addressing the government priorities of increased housebuilding and reaching Net Zero will require a skilled construction workforce with the capacity to deliver the associated increase in activity. Our modelling shows the scale of the challenge. Among many striking findings, 377,000 new recruits are needed over the next decade for home improvement and repair work alone.”
