By Nicholas Tamarin
The construction sector on both sides of the Atlantic is grappling with a pressing issue that threatens productivity, housing affordability, and long-term growth: a shortage of skilled labor. In the United States and the United Kingdom alike, builders, remodelers, and suppliers are finding that projects take longer, costs rise higher, and the pipeline of future workers remains uncertain.
The U.S. Landscape: A Multibillion-Dollar Gap
In the U.S., the shortage of skilled labor in construction has reached critical levels. A recent study from the Home Builders Institute (HBI) and the National Association of Home Builders (NAHB) estimates the economic impact at more than $10.8 billion annually, primarily due to extended construction times and lost housing production. In 2024 alone, roughly 19,000 new homes went unbuilt, representing over $8 billion in lost economic activity.
Several factors drive this shortage:
- High demand: Even as demand for new homes grows, the labor force is not keeping pace.
- An aging workforce: Many tradespeople are retiring without enough replacements entering the field.
- Recruitment challenges: Younger generations often overlook careers in construction in favor of white-collar jobs.
- Retention issues: Demanding work conditions, variable schedules, and limited benefits make it difficult to retain employees.
The U.S. Department of Labor projects that the industry will need an additional 2.2 million workers by 2025. Without them, builders face higher carrying costs, longer project timelines, and escalating prices that further strain an already tight housing market.
The U.K. Struggle: Brexit, Costs, and Skills Gaps
The U.K. construction industry mirrors many of these challenges, but with added pressures unique to its economic and political climate. Since Brexit, the sector has faced a decline in available labor, particularly from the European Union, which once supplied a steady flow of skilled workers. Combined with rising material costs, stricter immigration policies, and the lingering impacts of the pandemic, U.K. builders are finding it increasingly difficult to maintain schedules and budgets.
The Construction Industry Training Board (CITB) projects that the U.K. will need to recruit over 225,000 additional workers by 2027 to meet demand. Shortages are especially acute in trades such as bricklaying, plastering, and electrical work—all of which are essential for new housing delivery and infrastructure projects.
As in the U.S., the aging workforce compounds the issue. Many experienced workers are approaching retirement age, and there are too few apprentices being trained to replace them. With housing demand high and government targets ambitious, the U.K.’s construction sector risks falling short without significant workforce development.
Shared Challenges, Shared Solutions
Despite differences in labor markets and regulatory environments, the U.S. and U.K. share strikingly similar challenges. Both countries struggle with the perception of construction careers. Young people often view the industry as physically demanding, unstable, or less prestigious than those in technology or finance. This perception persists despite the reality that skilled trades offer competitive pay, career progression, and long-term job security.
Efforts to address the shortages are emerging on both sides:
- Education and training: Programs like HBI’s 400 U.S. training centers and CITB’s apprenticeships in the U.K. are essential pipelines for new talent.
- Partnerships: Collaborations with schools, youth organizations, and community groups are helping to introduce construction as a viable career earlier in students’ lives. The NKBA supports the National Housing Endowment (NHE) and is a partner with The Skilled Labor Fund. This partnership has opened up opportunities for NKBA Chapters to host Skilled Labor Events, bringing together NKBA members and the community to introduce youth of all ages to the skilled trades through hands-on activities. The Skilled Labor Fund also offers the Careers Connection grant to Chapters to help fund their events.
- Diversity and inclusion: Expanding opportunities for women and underrepresented groups is increasingly recognized as vital to filling workforce gaps.
- Financial incentives, including grants, stipends, and employer-funded training, help reduce barriers for those entering the trades.
A Call to Action
The skilled labor shortage is not simply an industry problem–it is an economic one. In the U.S., it slows housing production and drives up prices, exacerbating the affordability crisis. In the U.K., it threatens the delivery of critical housing and infrastructure projects. Across both nations, it curbs growth and innovation in one of the most essential sectors of the economy.
To close the gap, industry leaders, educators, and policymakers must work together to reframe construction as a modern, rewarding, and vital career path. Without decisive action, the shortage of skilled labor is likely to remain a defining constraint on the built environment for years to come.
