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Building sector faces demand for more than a million workers by 2035
Nicky Roger Associate editor
Construction faces the largest increase in workforce demand of any of the government's priority sectors, according to Skills England. Image: Sculpies, Dreamstime
Construction will require more than a million additional workers by 2035 if it is to meet government housing and infrastructure ambitions, according to Skills England’s first Annual Skills Report and accompanying Sector Skills Needs Assessment.
The report, published on 1 June, says construction faces the largest increase in workforce demand among the government’s priority sectors. Skills England estimates that employment in 30 priority construction occupations will need to grow by 493,000 workers between 2025 and 2035 – a 26% increase.
When replacement demand is taken into account, the challenge becomes even greater. The report estimates that around 595,000 workers currently employed in priority construction occupations will leave the workforce over the next decade, creating a total requirement for approximately 1.09 million workers by 2035.
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The findings come as the government seeks to deliver 1.5 million homes during the current parliament while also progressing major infrastructure and net-zero projects. Skills England said construction demand is being driven largely by these commitments.
Strongest projected growth
Construction was singled out as the sector with the strongest projected growth across all priority industries assessed by Skills England. The wider Annual Skills Report forecasts demand across priority sectors will rise by 24% over the next decade, requiring up to 1.8 million additional workers.
Among construction occupations, the greatest growth is expected in “construction and building trades not elsewhere classified”, with an additional 53,300 workers required by 2035.
The sector also faces competition for talent from other industries, with 19 of its 30 priority occupations overlapping with other priority sectors, particularly engineering and clean energy. Construction shares 17 priority occupations with the clean energy sector alone.
Skills England found that 20% of construction priority occupations are already in “critical demand”, while 40% are classed as either critical or elevated demand across the wider economy.
Technical and vocational routes
The report highlights the importance of technical and vocational routes in meeting future labour needs. Unlike many other growth sectors, most of the additional construction jobs are expected to require Level 2 and Level 3 qualifications. Skills England estimates that 59% of projected additional employment falls into this category, compared with 38% across all priority sectors.
Apprenticeships remain the dominant training route into the industry, supported by building and construction and engineering qualifications. Skills England noted that achievements in these pathways grew by 60% and 29% respectively between 2021/22 and 2023/24, although it warned that further growth will be needed to meet projected demand.
Top 10 priority occupations in the construction sector by additional employment to 2035. Image: Skills England
The assessment also identifies the skills most in demand across the sector. Alongside technical capabilities such as installing building systems, constructing external structures and inspecting completed work, construction workers increasingly need strong problem-solving, decision-making and numeracy skills.
The report notes that construction employed around 2.8 million people in the UK in 2025 and contributed more than £150bn in gross value added to the economy. The workforce remains heavily male-dominated, with men accounting for 85% of workers.
Publication of the report comes shortly after the government announced a £625m package aimed at training up to 60,000 additional skilled construction workers by 2029 to support housebuilding, retrofit and infrastructure programmes.
