Why Is the UK Struggling to Gain Quality Labour in Construction?
The UK construction industry is facing a significant labour shortage, with challenges stemming from a combination of economic, social, and political factors. This crisis has not only slowed down construction projects but has also increased costs for end-users. In this article, we’ll explore the reasons behind the UK’s struggle to find skilled labour, what caused the shortage, and what the future might hold. Finally, we’ll share why we choose to build in the Baltics and how this approach benefits our clients.
The Labour Shortage: What’s Causing the Crisis?
1. Brexit and the Decline of EU Workers
Before Brexit, EU nationals made up a significant portion of the UK construction workforce, particularly in skilled trades such as plastering, drylining, and carpentry. In cities like London, 40% of the construction workforce was estimated to be from the EU. As we all know, post-Brexit immigration rules introduced stricter visa requirements, making it harder for EU workers to enter or remain in the UK, reducing the number of EU construction workers in the UK fell by 25-30%, leaving a significant gap that local labour has struggled to fill.
2. An Aging Workforce
The UK’s construction workforce is aging, with nearly 22% of workers over the age of 50 and approaching retirement. Meanwhile, only 10% of workers are under 25, leaving a growing skills gap as experienced workers leave the industry and not enough young people step forward to replace them.
On top of this, it’s the dilution of skilled labour due to the aging workforce. With 22% of workers over 50, experienced professionals who traditionally mentor younger generations are retiring, leaving the 30-50 age group—who may have less experience—to train the next cohort. This transition can lead to variations in training quality, as fewer apprenticeships and structured programs hinder effective skill transfer. Additionally, increasing reliance on technology may narrow the skill set of new entrants. While specific data on skill dilution is limited, employers frequently report difficulties in finding adequately skilled workers, highlighting the need for strategic investments in training and mentorship to prepare the future workforce effectively.
3. Cultural Perceptions and Decline in Vocational Training
Construction and other manual labour jobs are often viewed as less desirable career paths in the UK. A societal focus on academic education over vocational training has led to fewer young people pursuing trades. While vocational training programs exist, they are often underfunded and misaligned with the industry’s needs, further exacerbating the problem.
4. Working Conditions and Wage Stagnation
The construction sector often involves physically demanding work, exposure to harsh weather, and safety risks. Combined with relatively stagnant wages in comparison to other industries, these factors have made construction less attractive to new entrants.
5. Global Supply Chain and Material Costs
The labour shortage is compounded by rising material costs and supply chain disruptions. With fewer workers available to process and deliver materials, the cost of construction has risen across the board, putting additional pressure on businesses and end-users.
What Can We Predict for the UK Construction Industry?
The UK must address these challenges to stabilise the sector, but any solutions are likely to come with higher costs for end-users. Here's what we can expect:
1. Increased Investment in Training
To address the skills gap, the UK government and industry bodies need to increase the funding for apprenticeships and vocational training programs. In addition, we need to learn how to capture the skillsets and knowledge from the older generation who are soon to retire. However, these efforts will take time to bear fruit, as training skilled workers is a long-term process.
2. Rising Wages and Improved Working Conditions
To attract more workers to the sector, working conditions need to improve and additional benefits need to be considered. There seems to be a lot of support talk for office workers (4 day work week, time off for mental health etc) yet there isn’t a lot of support for those in the construction industry to support a person during tough times (such as mental health decline, a loss in the family or personal health conditions). Working on methods to support this workforce will help make construction a more appealing career choice but will also increase costs for businesses and, ultimately, for end-users.
3. Greater Use of Technology and Modular Construction
The construction industry is turning to modular construction methods to reduce reliance on labour-intensive processes. This reduces some of the issues that are disliked in the current construction industry by the labour force such as exposure to harsh weather on a daily basis with most of the manufacturing being done withing a factory setting as well as better control with safety risks. While this can help mitigate labour shortages, it may require upfront investments that could also increase costs.
4. Reliance on International Labour
If the UK cannot quickly grow its domestic workforce, it may need to revisit immigration policies to make it easier for skilled workers from the EU and beyond to enter the country. However, this is a politically sensitive issue that may face resistance.
THC Homes, The Oak 3 Bed Modular Home (Under Construction)
Why Do We Build in the Baltics?
While the UK grapples with these challenges, we’ve taken a proactive approach to ensure we deliver the best quality, price, and service to our clients. If you look at The Oak home above that is constructed in a factory setting, QC checked prior to leaving the factory floor and is deliveerd and sited in a couple of weeks, you’ll see that our modular methods are not only a cost effective solution to building full spec homes but also are time friendly and reduce the burden of months on site for our team.
Want to know why we build in a factory in the Baltics? Here’s why:
1. Cost-Efficiency Without Compromising Quality
It wouldn’t suprise you that a lot of the UK materials in fact come from the EU. Not too long ago, we worked as one, so when we made the cut, Brexit didn’t change much other than putting up the prices of our materials. Fortunately for us, as we cater to both the UK and EU market, by sourcing materials locally, we avoid the high import fees and tariffs associated with bringing the same materials into the UK. This allows us to keep costs lower for our clients while maintaining exceptional quality.
2. Reduced Carbon Footprint
Sustainability is at the heart of what we do. By sourcing materials close to our Baltic factories, we minimise the need for multiple trucks delivering materials to the UK. Instead, our modular buildings are constructed in the Baltics and delivered to the UK on a single truck, reducing CO₂ emissions significantly. This streamlined process supports our commitment to sustainability and aligns with modern environmental standards.
3. Exceeding UK Building Standards
Our construction teams in the Baltics follow British design principles and comply with Passive House standards, which are globally recognised as the highest standard for energy efficiency. This gold standards surpasses the UK’s current building regulations, ensuring that our clients receive buildings of unparalleled quality and sustainability.
4. Skilled European Labour
The Baltics have a long tradition of craftsmanship and pride in construction. This doesn’t mean that the UK doesn’t. However, data is showing that there are societal attitudes toward manual labour which have created challenges in attracting skilled workers. As the skilled labour dilutes in the UK, the construction profession in the EU continues to remain a highly respected, well regarded profession, Our team in the Baltics are a dedicated group of specialists trained in Passive House design and build methods, a qualification that is spoken proudly with pride in their work that ensures every project is completed to the highest standard.
5. The Best for Our Clients
We have clients who are planning leisure sites in the UK, Spain, Portual, France and The Netherlands! With a Baltic base, we’re uniquely positioned to serve both our EU and UK clients. By combining cost-efficiency, superior quality, and sustainable practices, we offer a solution that addresses the challenges of the UK construction industry while delivering exceptional value.
Final Thoughts
The UK’s struggle to find skilled labour in construction is a symptom of deeper structural issues, from Brexit to cultural perceptions of manual work. While solutions are on the horizon, they will take time to implement and are likely to increase costs for end-users.
At the same time, our decision to build in the Baltics allows us to sidestep many of these challenges and deliver a superior product. From reduced material costs and CO₂ emissions to the pride and expertise of our European workforce, we’re proud to offer a solution that works for our clients in both the UK and the EU.
If you’d like to learn more about how our Baltic-based approach can benefit your next project, feel free to get in touch. We’d love to discuss your vision.
