IN Brief:
- 54% said the construction skills gap will worsen, versus 49% last year.
- Only 3% expected improvement, down from 5% the prior year.
- Respondents linked skills shortages to rising labour costs and reduced capacity.
Jewson’s latest Trade Trends report suggests the skills squeeze is hardening into an accepted constraint for small and mid-sized construction businesses, rather than a temporary disruption. More than half of builders and tradespeople surveyed (54%) said they expect the skills gap to worsen, up from 49% the previous year, while only 3% expect it to improve.
The report frames the issue as both demographic and technical: an ageing workforce is retiring out, fewer younger entrants are coming through, and demand is rising for specialist capability in areas such as low-carbon and sustainable construction. Those pressures are showing up in how tradespeople expect their businesses to operate over the year ahead.
When asked how the shortage will affect them, 19% said it will drive up labour costs through increased competition for workers. Another 18% said they will struggle to take on as much work, and 11% said projects will take longer to complete, with capacity already tight. Responses on how businesses plan to react point toward a market that is rationing itself: 16% said they will take on less work, while 19% plan to explore new talent routes, including apprenticeships or subcontractors. A further 13% said they are prepared to offer higher wages to attract skilled workers.
The practical implication for site delivery is that labour scarcity is becoming a programme risk in its own right, not just a pricing pressure. Longer lead times for skilled packages tend to push sequencing decisions earlier, increase the value of reliable subcontractor relationships, and raise the premium on predictable scope. For smaller contractors, the same dynamic can compress margins when fixed-price work meets labour volatility, or when the only way to hold delivery dates is to pay for labour at short notice.
Leigh Hill, Regional Director for Jewson, said: “The skills shortage continues to present an issue for the construction industry, and much more needs to be done to solve the problem.” The report points to apprenticeships as a key route, while also arguing for flexibility that would allow learners to build recognised capability in stages and enter productive work sooner.
The broader backdrop is that policy ambition on housing and retrofit depends on site labour that is already stretched. As regulatory demands tighten and technical complexity increases — whether through building safety processes, low-carbon standards, or higher customer expectations — shortages are likely to be felt most in the trades that sit at the sharp end of compliance, from MEP to envelope performance.
The survey suggests many businesses are already making the subtler choice: do less work, at higher cost, and try not to drop standards.
