The UK construction sector continues to face a persistent shortage of skilled labour at the same time as youth inactivity rises to near-decade highs. Official data shows that almost one million young people aged 16–24 are not in employment, education or training (NEET), highlighting a growing disconnect between available labour and industry demand.
For construction, this represents a structural risk, where the inability to attract and retain new entrants threatens delivery capacity across infrastructure, housing and commercial development.
While the construction sector faces ongoing labour shortages, evidence shows that rising youth inactivity and declining entry into skilled trades are creating a structural workforce gap that threatens long-term delivery capacity.
The Contradiction Between Labour Shortage and Youth Inactivity
The UK is currently experiencing a contradiction within its labour market. Construction firms report ongoing shortages of skilled workers, yet at the same time, the number of young people outside employment and education is increasing.
Recent figures show that 957,000 people aged 16–24 were classified as NEET in late 2025, representing 12.8% of the age group. This level is the second-highest in over a decade, approaching the peak of 971,000 recorded in 2024.
At the same time, youth unemployment has risen to around 16.1%, the highest level in 10 years, indicating that a significant proportion of young people are either unable to find work or have disengaged from the labour market entirely.
For construction, this creates a fundamental challenge: labour is available in theory, but not in a form that the industry can access or deploy.
NEET Growth and What It Signals for the UK Labour Market
The NEET category includes both unemployed individuals actively seeking work and those who are economically inactive.
Of the 957,000 young people classified as NEET:
This distinction is important. The presence of a large inactive group suggests that the issue is not solely a lack of jobs, but also a disconnect between young people and available opportunities.
Time spent outside employment or training is associated with long-term negative outcomes, including reduced earning potential and weaker attachment to the labour market, reinforcing the risk of a persistent workforce gap.
Why Young People Are Not Entering Construction
Despite strong demand for skilled trades, fewer young people are choosing careers in construction. This is not driven by a single factor, but by a combination of structural and behavioural issues.
Construction remains perceived as:
At the same time, many young people are influenced by an education system that prioritises academic routes over vocational training, leading to a misalignment between workforce supply and industry demand.
The Perception Problem: Image, Pay and Career Pathways
The construction sector has historically struggled with its public image. While wages in skilled trades can be competitive, the industry is often perceived as less attractive compared to professional or technology-based careers.
This perception gap is reinforced by:
As a result, many young people are either unaware of opportunities or choose alternative career paths, even where those paths offer less security.
The Education Gap Between Academic Routes and Skilled Trades
The UK education system continues to channel a significant proportion of young people toward university education, even where employment outcomes are uncertain. At the same time, construction relies heavily on apprenticeships and vocational pathways, which can be fragmented and difficult to access.
This creates a structural gap between:
Without stronger integration between education and construction, the pipeline of new entrants is likely to remain constrained.
Apprenticeships and Entry Barriers in Construction
While apprenticeships are a key route into construction, they can present barriers to entry.
Employers face increasing costs associated with hiring and training young workers, particularly in the context of rising minimum wages and employer contributions. Economic analysis suggests that higher wage floors and employer costs have contributed to reduced hiring of younger workers, particularly in entry-level roles.
For smaller contractors, these pressures can limit the ability to invest in training, further reducing the number of available opportunities for new entrants.
The Ageing Workforce and Replacement Demand
The construction workforce is ageing, with a significant proportion of skilled workers approaching retirement. As experienced tradespeople exit the industry, the need for replacement labour increases. However, the inflow of younger workers is not keeping pace with this demand.
This creates a structural imbalance, where the loss of experience is not matched by the development of new skills, increasing the risk of capacity constraints across the sector.
Impact on Project Delivery and Construction Capacity
Labour shortages have direct implications for project delivery.
Where skilled workers are unavailable, projects may face:
As demand for infrastructure, housing and retrofit continues to grow, these constraints are likely to become more pronounced, particularly on complex or high-spec projects.
Is This a System Failure or a Generational Shift
The workforce gap in construction is often framed as either a system failure or a generational issue. In reality, it reflects elements of both. On one hand, the industry has struggled to present a clear, attractive and accessible pathway for new entrants. On the other, younger generations have different expectations around work, including flexibility, working conditions and career progression.
The result is a misalignment between:
The issue is no longer the availability of labour, but the alignment between workforce expectations and industry structure.
What This Means for Contractors and Clients
For contractors, the shortage of skilled labour represents both a commercial and operational risk.
Firms may need to:
For clients, particularly on large infrastructure and development projects, workforce constraints may influence programme, cost and procurement strategy. Labour availability is increasingly becoming a critical factor in project viability.
Evidence Summary
The UK labour market is currently characterised by a contradiction, where 957,000 young people are not in employment, education or training, while sectors such as construction continue to face persistent labour shortages.
This disconnect reflects a structural gap between workforce supply and industry demand. Factors including rising employer costs, education pathways, and changing workforce expectations are limiting entry into skilled trades.
For construction, the implication is clear. Without a sustained increase in new entrants, the sector faces long-term risks to delivery capacity, productivity and growth.
The Contradiction Between Labour Shortage and Youth Inactivity
The UK is currently experiencing a contradiction within its labour market. Construction firms report ongoing shortages of skilled workers, yet at the same time, the number of young people outside employment and education is increasing.
Recent figures show that 957,000 people aged 16–24 were classified as NEET in late 2025, representing 12.8% of the age group. This level is the second-highest in over a decade, approaching the peak of 971,000 recorded in 2024.
At the same time, youth unemployment has risen to around 16.1%, the highest level in 10 years, indicating that a significant proportion of young people are either unable to find work or have disengaged from the labour market entirely.
For construction, this creates a fundamental challenge: labour is available in theory, but not in a form that the industry can access or deploy.
NEET Growth and What It Signals for the UK Labour Market
The NEET category includes both unemployed individuals actively seeking work and those who are economically inactive.
Of the 957,000 young people classified as NEET:
- Around 411,000 are unemployed and actively looking for work
- Approximately 547,000 are economically inactive
This distinction is important. The presence of a large inactive group suggests that the issue is not solely a lack of jobs, but also a disconnect between young people and available opportunities.
Time spent outside employment or training is associated with long-term negative outcomes, including reduced earning potential and weaker attachment to the labour market, reinforcing the risk of a persistent workforce gap.
Why Young People Are Not Entering Construction
Despite strong demand for skilled trades, fewer young people are choosing careers in construction. This is not driven by a single factor, but by a combination of structural and behavioural issues.
Construction remains perceived as:
- Physically demanding
- Weather-dependent
- Less stable compared to office-based roles
- Offering unclear long-term career pathways
At the same time, many young people are influenced by an education system that prioritises academic routes over vocational training, leading to a misalignment between workforce supply and industry demand.
The Perception Problem: Image, Pay and Career Pathways
The construction sector has historically struggled with its public image. While wages in skilled trades can be competitive, the industry is often perceived as less attractive compared to professional or technology-based careers.
This perception gap is reinforced by:
- Limited visibility of progression routes
- Lack of clear career narratives
- Inconsistent messaging around earnings and stability
As a result, many young people are either unaware of opportunities or choose alternative career paths, even where those paths offer less security.
The Education Gap Between Academic Routes and Skilled Trades
The UK education system continues to channel a significant proportion of young people toward university education, even where employment outcomes are uncertain. At the same time, construction relies heavily on apprenticeships and vocational pathways, which can be fragmented and difficult to access.
This creates a structural gap between:
- The skills being developed
- The skills required by industry
Without stronger integration between education and construction, the pipeline of new entrants is likely to remain constrained.
Apprenticeships and Entry Barriers in Construction
While apprenticeships are a key route into construction, they can present barriers to entry.
Employers face increasing costs associated with hiring and training young workers, particularly in the context of rising minimum wages and employer contributions. Economic analysis suggests that higher wage floors and employer costs have contributed to reduced hiring of younger workers, particularly in entry-level roles.
For smaller contractors, these pressures can limit the ability to invest in training, further reducing the number of available opportunities for new entrants.
The Ageing Workforce and Replacement Demand
The construction workforce is ageing, with a significant proportion of skilled workers approaching retirement. As experienced tradespeople exit the industry, the need for replacement labour increases. However, the inflow of younger workers is not keeping pace with this demand.
This creates a structural imbalance, where the loss of experience is not matched by the development of new skills, increasing the risk of capacity constraints across the sector.
Impact on Project Delivery and Construction Capacity
Labour shortages have direct implications for project delivery.
Where skilled workers are unavailable, projects may face:
- Delays in programme
- Increased labour costs
- Reduced productivity
- Greater reliance on subcontracting
As demand for infrastructure, housing and retrofit continues to grow, these constraints are likely to become more pronounced, particularly on complex or high-spec projects.
Is This a System Failure or a Generational Shift
The workforce gap in construction is often framed as either a system failure or a generational issue. In reality, it reflects elements of both. On one hand, the industry has struggled to present a clear, attractive and accessible pathway for new entrants. On the other, younger generations have different expectations around work, including flexibility, working conditions and career progression.
The result is a misalignment between:
- Industry structure
- Workforce expectations
The issue is no longer the availability of labour, but the alignment between workforce expectations and industry structure.
What This Means for Contractors and Clients
For contractors, the shortage of skilled labour represents both a commercial and operational risk.
Firms may need to:
- Invest more heavily in training and apprenticeships
- Improve working conditions and career progression
- Engage earlier with education providers
For clients, particularly on large infrastructure and development projects, workforce constraints may influence programme, cost and procurement strategy. Labour availability is increasingly becoming a critical factor in project viability.
Evidence Summary
The UK labour market is currently characterised by a contradiction, where 957,000 young people are not in employment, education or training, while sectors such as construction continue to face persistent labour shortages.
This disconnect reflects a structural gap between workforce supply and industry demand. Factors including rising employer costs, education pathways, and changing workforce expectations are limiting entry into skilled trades.
For construction, the implication is clear. Without a sustained increase in new entrants, the sector faces long-term risks to delivery capacity, productivity and growth.
Image © London Construction Magazine Limited
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Expert Verification & Authorship: Mihai Chelmus
Founder, London Construction Magazine | Construction Testing & Investigation Specialist |
