UK Construction Jobs Hit a 20-Year Low — What’s Really Going On?

I read a stark article in Construction Enquirer, today…

UK construction employment has dropped to its lowest level since I joined the industry in 2000 and is down to around 2.05 million people. That’s roughly 15% below the pre-Covid peak and edging close to dipping under 2 million.

Economists are pointing to slower housebuilding, weaker commercial demand, and rising employer costs as key drivers. There’s also concern that if things stay quiet for too long, some skills could be lost for good. The Office for National Statistics has warned that recent data has some gaps due to Labour Force Survey issues, but the overall downward trend looks pretty clear.

What’s Behind the Numbers?

  • Housing slowdown & rising costs: Fewer new starts and higher build costs are making firms more cautious about hiring — especially for permanent roles.
  • Direct jobs are shrinking faster: After the pandemic, many moved from self-employed to direct employment. Now that’s reversing, with direct roles falling faster than freelance ones.
  • Skills at risk: If experienced people leave the industry and don’t come back, it’ll be tough to rebuild capacity even when projects pick up again.
  • Data caveat: The ONS has flagged some sampling challenges, so it’s worth balancing the stats with what’s happening on the ground — tenders, frameworks, live orders, etc.

 

Where We’re Still Seeing Activity

  • Despite the headlines, the picture isn’t all negative. Across Wales and the South West, we’re still seeing steady demand in areas like:
  • Public sector and regulated programmes (health, education, water/AMP, highways maintenance)
  • Energy, power, and data-centre work (grid upgrades, BESS, substations, mission-critical builds)
  • Retrofit, decarbonisation, and compliance (fire safety, façade remediation, MEICA)

These projects need speed, compliance, and specialist skills — and often work best with a mix of permanent, freelance, and trades & labour teams.

How Sphere Solutions Is Helping Clients Right Now

  • Flexible resourcing plans
  • Build a workforce mix that protects your core team while flexing with freelance and T&L support when needed.
  • Use returner pools (trusted operatives and managers) to speed up onboarding and reduce early dropouts.
  • Fast mobilisation with full compliance
  •  Swift shortlists for urgent roles, organising pre-cleared operatives with the right CSCS/CCDO/CPCS/NPORS and medicals.
  • Weekly compliance packs so your site teams know exactly who’s ready to start.
  • Pipeline planning & market insights
  • Quarterly workforce sessions to align with your project milestones.
  • Up-to-date rate guides and lead-time forecasts so you can secure key people early.
  • Value for money without cutting corners
  • Clear rate frameworks, volume incentives, and measurable SLAs on fill times, no-shows, and retention.
  • Local social value delivery – Led by our Social Value Manager @Robyn Marshall

As an employee-owned business, we partner on local labour, apprenticeships, and outreach for ex-forces and career changers.

  • We track impact (local hires, engagement hours) for your ESG and framework reports.
  • Helping Candidates in a Tougher Market
  • One simple registration opens up roles across Trades & Labour, White-Collar Freelance, and Permanent.
  • CV refresh, interview prep, and quick feedback to help you move fast when jobs land.
  • Advice on transferring skills between sectors (e.g. residential → retrofit, civils → utilities).
  • Training and ticket renewal guidance to stay site-ready.

What You Can Do This Month

For hiring managers:

  • Identify two priority roles or bottlenecks where a flexible model could help.
  • Share your next 90-day milestones so we can plan resource and lead times.
  • Book a short 15-minute resource review with your local Sphere team (Cardiff, Bristol, Gloucester, Taunton, Plymouth, Truro—and now London/Watford & Southampton).

For candidates:

  • Register or update your details so we can confirm your tickets and availability.
  • Let us know your target start window (pre-Christmas or January) and how far you’re happy to travel.
  • Ask about our returner pools — proven people often get the first calls when demand picks up.

Looking Ahead

The job numbers may look bleak, but projects are still being delivered. Energy, infrastructure, safety, and public estate programmes continue to move, and when confidence returns, competition for skilled people will be fierce.

The best move now? Protect your core capability, keep compliance tight, and stay connected with your talent network.

If you’d like a no-obligation resource plan for Q4–Q1, we’ll put one together within 48 hours — complete with a shortlist of start-ready candidates and a compliance snapshot.

Let’s talk.

Clients: Contact your local Sphere office

Candidates: Register and upload your CV

Sources: Construction Enquirer report on ONS data and expert commentary (CPA, BCIS), 12 Nov 2025.

Back to Blogs