UK Construction Sees Modest Growth in March as Labour Shortages Continue
The UK construction sector saw a small boost in March 2025, with output rising by 0.5%. Milder weather and steady progress on housing and infrastructure projects helped support this growth. It follows a 0.2% increase in February and a 0.3% decline in January, leaving overall output for the first quarter flat.
While Q1 output remained unchanged, new construction orders saw a big jump—up 26.6% (around £2.45 billion) from the previous quarter. Most of this came from infrastructure and private industrial projects, suggesting renewed investor confidence and a stronger pipeline of future work.
However, the industry is still struggling with a shortage of skilled workers. Over 35,000 job vacancies are currently unfilled, and more than half are due to a lack of necessary skills. Experts warn the sector will need an extra 225,000 workers by 2027 to meet demand.
In response, the government has committed £600 million to train up to 60,000 new construction workers by 2029. The investment is part of a broader plan to deliver 1.5 million new homes and will fund apprenticeships, training programmes, and partnerships with employers and education providers.
Overall, while the March growth and spike in new orders are encouraging signs, ongoing labour shortages remain a major challenge. Continued investment in skills and training will be key to unlocking the industry’s full potential and meeting long-term housing and infrastructure goals.
