City & Guilds has called on the government to take ‘immediate and strategic action’ to address the critical skills shortages in the construction sector, after a survey reveals that three quarters of construction firms are struggling to recruit the skilled workers they need.

The survey found that 84% of respondents believe the industry is facing a critical skills crisis, with 54% expressing doubt that the sector can meet the government’s housing or net-zero targets.

It suggests that to meet the government’s 1.5 million homes target, the homebuilding sector will need to recruit 161,000 additional workers. This represents a 30% increase on the current workforce. 

However, it highlights that the industry is losing an estimated 50,000 skilled workers each year due to an ageing workforce and a lack of new entrants.

Data shows that rising costs (46%) are the main barrier to recruitment within the sector, followed by local labour market challenges (41%). 

Demand for job-ready hires (36%) is another barrier, while 26% say lack of interest among young people and 28% say stricter immigration laws are also creating a problem.

A City & Guilds report highlights that 85% of employees see training as vital for career progression, and 59% believe more training opportunities would attract new talent.

However, 61% say it’s difficult to access funded training, pointing to a significant gap in provision.

Although the sector is evolving with new technologies and environmental standards, only 51% of workers have received training in sustainable construction, despite nearly half of employers reporting shortages in this area.

City & Guilds suggests a three-pronged approach to closing the gap.

This includes improving perceptions of the sector and embed construction skills earlier in the education system and provide accessible training for those entering the sector from other industries.

In addition, it suggests promoting lifelong learning and ensuring training equipment and funding meet modern demands, including green skills.

City & Guilds chief executive Kirstie Donnelly says: “To meet the Government’s ambitious housing and net zero targets, we need a fundamental reset in how we attract, train, and upskill talent across the construction sector. ”

“This means stronger collaboration between industry, education, and government, with targeted investment and flexible training routes.”