Why the "Skills Gap" is a problem the UK will have to solve for itself

Introduction

TICA have been shouting loud and proud about the importance of Apprenticeships over the last few years. In a recent article Public Procurement Reforms need to prioritise Apprenticeships | LinkedIn I highlighted the necessity for rewarding apprenticeship investment as a KPI for public authority spend. I explained why this was a necessary step in the process of creating a positive feedback loop of apprenticeship investment.

Many of us inherently feel that investing in our own young people is not just the right thing to do morally, but also the right business decision. The alternative is a continued reliance on either unskilled labour or foreign labour (or in some cases both!). But what are the facts behind this thought process? I will lay them out in this article.

The Data

The skills gap is a sector wide issue. There are simply not enough people entering the construction sector to meet the increasing demand. The CPA charts below highlights the “demographic timebomb” as people currently in their fifties and sixties exit the construction sector over the next ten years.

The short-term approach of “borrowing” labour from abroad is no longer viable. Once we understand that the demographic timebomb is also ticking away elsewhere in Europe, we can start to understand why our neighbours are fighting harder to keep their workforce at home. They simply don’t have enough young people to spare any more…

If you’re unsure as to how big a problem this is then it may be worth visiting? Population Pyramids of the World from 1950 to 2100 - PopulationPyramid.net . Here are a couple of examples:

Population pyramids in European countries no longer look like pyramids. They look more like slightly disappointing Christmas trees. And in all cases, the number of people in their fifties and sixties vastly outweighs the number of people in their teens and twenties. European countries simply don’t have enough young people to fill the gap that is looming as the last of the? “baby boomers” hang up their hard hat and head off to retirement.

It is also worth noting that the demographic trends highlighted for Europe exist to a greater or lesser extent in the rest of the world (sub-Saharan Africa being the notable exception). The idea that the construction sector can solve all problems by moving its searches further afield is totally unsustainable. The problem is ours to deal with. So onto the UK…

The UK and NEETs

The UK population pyramid is far from perfect, but it is not as disastrous as many other European countries. The % of population in their teens and twenties is significantly higher in the UK than in most other European countries. Approximately 12.2% of the UK population is in their twenties. This compares to 10.7% of the population in Germany and just 10.3% of the populations in Spain and Italy.

If the UK can harness the potential of the young people we have, we should find ourselves in a better position than most European countries. Sadly, the numbers of young people not in work or training are at unsustainable levels. There is even a term for it. NEET stands for “not in education, employment or training”. The numbers are sobering.

According to the Office of National Statistics, “an estimated 13.2% of all people aged 16 to 24 years in the UK were not in education, employment or training (NEET) in July to September 2024. This is an increase compared with July to September 2023, and up on the previous quarter.”

That is 946,000 young people who are in the NEET bracket. Furthermore, the cause of the increase is young men (of the total number of young people who were NEET, 550,000 were young men and 397,000 were young women).

Conclusion

The construction sector has the demand for skilled workers. The UK has a supply of young people. What seems to be lacking is the will to train and develop. Whilst every effort should be made to encourage women into the construction sector, the fact that a straight line between an industry that is predominantly male and the 550,000 male NEETS hasn’t been drawn is quite frankly exasperating.

The construction sector has an opportunity to step in and give hope and purpose to so many young people who may otherwise feel let down by the system. A skilled trade apprenticeship in the construction sector may be the perfect opportunity for many young people – I see the positive results with my own eyes every time a visit our training centre at TICA House. TICA have increased the number of apprentices year on year for the last four years and we are working to continue this positive trend. However, the challenges are real and more support from the Government is needed. Will the new Procurement Regulations be a step in the right direction?