Youth unemployment is rising, not because young people lack ambition, but because construction businesses increasingly cannot afford to employ and train them, argues Craig Bell, CEO of Bell Group.
Youth unemployment is largely an issue of the government’s own making, a consequence of years of policy failures and lack of foresight. After successive minimum wage increases for apprentices and younger workers, all marketed under the banner of ‘raising living standards,’ it has simply priced many entry-level roles out of existence. Now ministers appear shocked that fewer young people are entering work.
While some positive action has been taken, such as the investment package of £600m to train up the trade professionals needed, this year, in an attempt to help turn things around, ministers have discussed subsidising families when teenagers enter apprenticeships – alongside another broader package of reforms.
Let’s face it, this is treating the symptom rather than the cause. The uncomfortable truth is this: you cannot tax and regulate entry-level employment into decline and then expect welfare payments to fix the problems afterwards.
Surely the more pragmatic approach is to reduce the barriers preventing businesses from employing young people in the first place.
Significant investment burden
A priority has to be the significant investment burden for SME construction businesses. Employers take on the cost of supervision, mentoring and the reduction in productivity during training, college release, administration and compliance, long before they see any commercial return.
When government continuously raises wage costs without addressing those wider burdens, businesses respond in the only way they can: by reducing recruitment. This all stems from the UK’s systemic political problem of looking for short-term media wins, which sacrifice long-term value and vision.
The result for apprenticeships is that they’re left stuck in layers of subsidies and a mire of bureaucracy. Against a backdrop of such extended economic uncertainty, SMEs are already under increasing pressure.
If ministers genuinely want to tackle youth unemployment, then the focus should be on making apprenticeships commercially viable again. So, what does that look like? Well, reduce employment costs for young workers, cut bureaucracy around the various training schemes, and give employers the confidence to invest in long-term skills development.
The value in apprenticeships
Because when the conditions are right, apprenticeships are transformative. At Bell, we are entirely driven by creating jobs with career paths and supporting social mobility. My father began his career as an apprentice, and since our organisation was founded, we have aligned ourselves to focus on societal issues such as unemployment, inspiring young people, social inclusion and community regeneration.
Apprenticeships can have such a positive impact on social mobility, and a little over 16% of our workforce are apprentices, with more than 302 apprentices on programmes nationwide. These schemes are bringing in new talent, while also providing a route for upskilling existing employees.
Not to be seen as a short-term fix, when apprenticeships succeed, they have a fundamental part to play in a long-term, scalable solution that contributes to the UK skills gap. They are a proven, strategic and meaningful investment that does more than just fill vacancies: they build capability, strengthen culture and create a workforce equipped for the challenges ahead.
However, positive outcomes need sustained investment and commitment to building pathways into the industry that are credible, supported and genuinely valued. Britain built generations of skilled tradespeople through apprenticeships because they worked for both employers and young people.
More welfare payments just aren’t the right solution to get us back there. At some point, the cycle of endlessly handing out money has to end. We must return to an economy where work, training and opportunity are affordable, accessible and sustainable once again.
While no easy task, those barriers facing businesses must be and can be removed. Perhaps as we face new leadership in the UK, with renewed focus and hope, we may start to see the necessary steps taken to get there.
Mmmm. 20 years too late.
Bring back the Technical Colleges.
Staff it with Trades Persons (Probably retired)
Do not skimp on the salaries which should be tax free.
This is the UKs last chance, before the people with the existing skills just die out !!!!
I have been in the Construction Industry since I was 16 years old. I am now 78.
I am a qualified Carpenter by trade.
I am also a retired Chief Q.S. & Project Manager. Construction Manager. Director, Managing Director. Director of Construction, Consultant. MRICS & MCIOB etc. (Retired) In the UK and Overseas. Middle East, Far East, Africa, India. With small. Medium, large & mega Constructors.
Wherever possible I staffed my Projects with fully experienced Trades in Management positions.
I retired at 72. During that period a great many practical hands-on skills have been lost within the Industry.
Brexit did not help.
Good luck.
I agree that the problem has been caused by failed government policies and lack of foresight. However, the shortage of young people wanting to work in our industry is not confined to the UK. I retired about 20 years ago and moved to Spain to build my dream home. I was the third generation of my family to work in the construction industry but I will be the last as none of my children or grandchildren are interested. My Spanish and German friends tell me there is a lack of young people entering the industry in their countries. Perhaps, the government should consider lowering the retirement age and reducing taxation for those people who work in essential industries like construction. We need policies that encourage young people to want to have careers that benefit society and discourage them from taking jobs in antisocial and unnecessary sectors of the economy!
A very good and considered article which I totally agree with.
May I add that it should be the main contractor’s responsibility to train apprentices, not the little
“trade contractors “ many of whom employ apprentices merely to obtain work.
Long term benefits must be invested in, with no early payback.
“Well, reduce employment costs for young workers, cut bureaucracy around the various training schemes… ”
What does this mean? From the tone of your opening paragraph, reducing employment costs will consist of reversing minimum wage increases for young people, making them effectively pay for their training (as University students do), and reducing or abolishing Employers NI for apprentices, which, oh hold on, looks exactly like a subsidy.
Lets not forget cutting bureaucracy though. What extra bureaucracy is there around employing an apprentice, as opposed to a qualfied worker, I wonder? Only those checks and balances that ensure there is actual on the job training and mentorship, proper apprenticeship plans and progress monitoring, to ensure that the whole thing isn’t just a cheap way of emloying tradesmen’s labourers.
By all means advocate for the wage and tax incentives if that is what you think is needed, but be honest about it, and don’t play the ‘bureaucracy’ card. Anyone old enough to remember the 90’s knows what deregulation and cutting red tape and bureaucracy actually means. And what it leads to.
More background –
“Approximate annual apprenticeship starts (England, 2024/25)..
Business, Administration & Law: 103,890
Health, Public Services & Care: around 95,000
Engineering & Manufacturing Technologies: 46,070
Construction, Planning & the Built Environment: 24,590
Digital Technology: around 27,000
Other sectors (retail, education, hospitality, agriculture, arts, transport, etc.) make up the remainder.
Most industry forecasts suggest that wage pressure is likely to continue over the medium term because:
the construction workforce is ageing;
demand for housing, infrastructure and net-zero projects is expected to remain substantial; and
replacing skilled workers takes time.
However, if construction activity slows sharply because of economic conditions, wage growth could moderate, particularly for less specialised roles.
In summary, construction workers—especially qualified tradespeople—have generally seen real pay improve recently after a temporary decline during the inflation surge. The main drivers are persistent labour shortages, strong demand for skilled workers, an ageing workforce, and reduced labour supply following Brexit.
Either way – there is a cost.”
Apprenticeship starts have risen over the last five years, reaching 353,500 starts in 2024/25, the highest level since before the pandemic
But there are some important caveats
The growth has not been uniform:
Younger apprentices (under 19) have not shared equally in the increase. Their apprenticeship starts have generally declined over the longer term, while growth has been concentrated among adults aged 25+ and in higher-level apprenticeships.
Many large employers have shifted towards using apprenticeship funding for existing employees and higher-level qualifications, rather than recruiting new school leavers. This has changed the composition of apprenticeship starts.