The construction industry is on shaky ground; and the numbers reflect it

28/05/2025

In just the first four months of this year, 840 building firms across the UK filed for insolvency, marking an all-time high, according to City A.M.

For young tradespeople, this collapse is not just a headline, it is a daily struggle. From bricklayers to plumbers, those beginning their careers in construction are watching jobs vanish before they have even hammered in their first nail.

Since 2017, UK governments have hailed apprenticeships as a cornerstone of skills policy. Designed to offer paid, structured training combining on-the-job experience with classroom-based instruction, they are meant to address both skills shortages and youth unemployment. However, in practice, many schemes fall short of this ideal.

The British Association of Construction Heads has highlighted that the construction sector is still recovering from the impact of the pandemic, with a dropout rate of 47% among apprentices. Resultantly, only 8,620 construction apprentices reached End Point Assessment (EPA) in 2022/23, nowhere near the industry need of over 96,000 new staff per year.

With an ageing workforce and record levels of insolvency, the sector’s need for new recruits is urgent. The Construction Industry Training Board estimates that the UK will need an additional 250,000 construction workers by 2028. Moreover, the government’s pledge to build 1.5 million homes by 2030 could push that number even higher, adding another 150,000 jobs to the shortfall.

So why aren’t apprenticeships stepping up?

Experts point to several problems. Small and medium-sized enterprises (SMEs), which make up the majority of construction employers, often lack the resources to offer structured training. Compounding the issue is the Apprenticeship Levy, introduced in 2017 to support training investment. While well-intentioned, the scheme is frequently criticised for its complexity and lack of flexibility. A 2021 report from the Institute for Employment Studies found that many businesses either fail to fully access their levy funds or disengage from the process altogether, resulting in missed opportunities to build a stronger, more skilled workforce.

Despite these challenges, there are signs of what works. The Shared Apprenticeship Scheme, backed by CITB and piloted in the West Midlands, allows apprentices to rotate between multiple firms, gaining broader experience and reducing the risk of being left in limbo if a company folds. Early results show higher completion rates and better employment outcomes.

However, pilot schemes alone won’t solve a systemic problem. For thousands of young tradespeople, the promise of an apprenticeship has given way to uncertainty and instability. In a sector where skilled labour is in high demand but in short supply, the failure to effectively train and retain workers is more than a personal setback; it represents a serious risk to the national economy.

If apprenticeships are to remain a viable entry point into the trades, they need more than good branding. They need robust oversight, industry commitment, and sustained government support. Until then, the system risks becoming just another broken promise in a sector already full of cracks.

 

Opinion piece by Sean Killen