An ageing construction workforce represent risks to the construction sector
Construction employment by age group in the UK (millions)
Ageing workforce contributes to construction’s labour shortage
The construction industry faces an issue of an ageing workforce; around 750,000 of the 2.1 million workers in the sector are over 50. As a share, this represents 35% of the workforce which compares with a national average of 32%. According to a study by Censuswide, 15% of workers in the built environment sector planned to keep working in some form in retirement compared to an industry-wide average of 27%. Meanwhile, 58% planned to retire between the ages of 61 and 65, with only 5% intending to work beyond 65. 3
2019 2020 2021 2022 2023
16-64
The pandemic compounded the issue
50+
There was a drop in construction workers between the ages of 16 and 64 after the onset of the Covid-19 pandemic, with a fall from 2.24 million in 2019 to 1.99 million in 2021. Although it has rebounded slightly, the workforce of 2.04 million in 2023 remains below the pre-pandemic level. Much of the fall was in the 25 to 49 age range, which saw a 14% peak to trough fall. There was a fall of 6.3% in the over 50 age category and it remains 4.0% below the pre- pandemic level. The share of construction workers over the age of 50 has increased from 27% in 2004 to 35% in 2023. The Construction Products Association (CPA) have predicted that, with the big spike in employment in the 50-64 age range, construction will be losing around 500,000 workers (around one-quarter of the workforce) in the next 10-15 years. It suggests this issue has accelerated considerably over the past three years and has been exacerbated by long-term health issues attributed to Covid. 4 3 Censuswide, Providing for tomorrow today: understanding an ageing workforce (Censuswide: London), 2023 4 Worm, P, Data shows construction struggles with new talent, 2024 c onstructionmanagement.co.uk [accessed 10 August 2024]
25-49
20-24
16-19
0.00
0.50
1.00
1.50
2.00
2.50
Source: Capital Economics, the Office for National Statistics, Centre for European Reform
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