The UK construction sector will need to recruit around one million new workers over the next decade to meet growing demand and replace employees leaving the industry, according to a major new workforce report.
The findings, published in the Annual Skills Report 2026, highlight a looming labour shortage that could threaten the delivery of housing developments, infrastructure projects and economic growth plans across Britain.
The report estimates that demand for workers in the construction sector’s 30 most critical occupations will increase by 493,000 by 2035, representing a 26% rise in workforce requirements.
At the same time, approximately 595,000 existing workers are expected to leave the industry over the next ten years due to retirement, career changes and other factors.
Combined, those figures mean the industry must attract roughly one million new workers by 2035 to maintain capacity and meet future demand.
The warning comes as the UK government continues to pursue ambitious housebuilding targets and large-scale infrastructure projects, placing additional pressure on a sector already struggling with skills shortages.
Industry leaders have repeatedly warned that a lack of skilled labour could delay the construction of new homes, transport links and renewable energy projects unless recruitment and training efforts are significantly expanded.
The report stresses the importance of increasing apprenticeships, improving training opportunities and creating clearer routes into construction careers.
It also highlights the need to attract younger workers into the industry while improving retention rates among existing employees.
With a significant proportion of the current workforce approaching retirement age, employers are facing growing concerns over how to replace experienced staff and preserve critical skills.
Experts warn that without urgent action to address workforce shortages, the construction industry could struggle to meet future demand and support the UK’s long-term economic ambitions.