UK to Lose Out on £98bn Growth Due to Shortage of Tradespeople
A NATIONAL SHORTAGE of skilled tradespeople, such as roofers and electricians, is set to cost the UK £98bn in missed economic growth by 2030.
The UK is currently facing a shortage of 166,000 tradespeople, according to new research by Kingfisher, owner of Screwfix, B&Q and TradePoint, in partnership with economics consultancy Cebr.
Shortfall of 13,199 Roofers
Vacancy levels for many trades are close to record highs. The research found there will be a shortfall of 13,199 roofers in six years’ time.
The shortfall is forecast to grow to a total of 250,000 across the trades by 2030 as more homeowners look to improve their property’s energy efficiency.
Looking to install measures like insulation, heat pumps or solar panels – these are the areas set to have the biggest tradespeople shortages.
The West and East Midlands and London are the regions predicted to be most impacted by tradesperson shortages. It means GDP growth will be reduced in these regions by £14.5 billion, £12.1 billion and £11.7 billion respectively.
Shortage of Tradespeople
The findings come as a survey by Kingfisher of 1,000 16–25-year-olds2 reveals many young people are missing out on trade careers due to a lack of career advice at schools.
Half (49%) of young people said they have never considered a career in the trades. Only 1 in 10 (13%) said they were encouraged at school to consider trade career options. Almost half (42%) said they would have liked more information about trade roles before deciding on their career path.
Gender Divide
The research also revealed a stark gender divide when it comes to trade careers. Currently, just 2% of the UK’s 900,000 tradespeople are women.
If the number of women tradespeople increased to just one third of the current number of men, it would solve the UK’s projected 2030 tradesperson shortage.
Doubling the current number would boost growth by over £800m per year. Yet only 35% of young women have ever considered a career in the trades, compared to 60% of young men.
The gender gap also seems to be being exacerbated by an imbalance in advice given at schools. Only a quarter (26%) of young women said they were given information about trade careers, compared to almost half (47%) of young men.
Valuing Trade Careers
Thierry Garnier, Kingfisher CEO, said: “It’s vital that business and government work together to encourage and support more young people to consider trade roles – particularly young women who are seriously underrepresented. Trade careers are high-quality, skilled jobs, with significant earnings potential, and they should be valued just as highly as career options which require a university degree.”
A separate survey of 2,000 adults found that tradesperson shortages are already having an impact. A fifth of people said they had had to cancel or postpone a project in the last five years because they couldn’t find a tradesperson.
But over a third (37%) think young people are discouraged – by parents, schools, and the government – from considering a trade career. Among parents, 61% think children are being put off from trade careers by a focus from schools on academic rather than vocational career paths.
Recommending a Trade Career
Kingfisher also spoke to 585 tradespeople from across the UK. Almost half (45%) said they felt personally discouraged by their school or college to consider a career in the trade.
That’s despite 87% saying they would recommend trade careers to young people. One in three (35%) said the growth of their business had been directly impacted by not being able to find an apprentice.
To help promote trade careers and create future industry role models, Screwfix runs an annual Trade Apprentice competition, awarding the winner a career-boosting prize bundle worth £10,000. It has also funded 14 trade apprentices through its partnership with Trac, transferring part of its apprenticeship levy.
Following Kingfisher’s research findings, Screwfix is working on a campaign for next year to connect its tradespeople customers with schools and colleges to inspire the next generation to consider a future in the trade.
Three Government Measures
Kingfisher is also proposing measures under three areas where Government could make a meaningful difference in addressing the trade skills gap, based on its research and insight from trade customers:
Stronger career advice in schools to encourage young people to take up a trade career
Review the remit of the National Careers Service to look at how pathways to trade careers could be better represented in school careers advice. Emphasise how trades can contribute to tackling climate change and offer opportunities to run your own business.
Encourage schools to invite tradespeople to careers fairs and talks with students, particularly women working in trades to ensure more visible role models.
Hiring incentives to support SMEs in taking on, training and retaining apprentices
Introduce a grant similar to the £3,000 apprenticeship incentive that was in place during the pandemic, with a £1,000 apprenticeship completion bonus, to support SMEs in taking on apprentices. Combine this with a partial or complete National Insurance break per apprentice for SMEs.
Create a simple one-stop advice service to help tradespeople to hire apprentices, with practical guidance on navigating issues such as pensions and insurance.
Explore ways to incentivise older tradespeople who may be thinking about retiring, or wanting to work part-time, to use their experience to help train up the next generation of trade apprentices.
Cost of living support to ensure trade apprenticeships are financially viable for young people
Provide Trade Apprentices with loan support similar to university students to help them with the set-up costs of their apprenticeship (e.g. purchase of necessary tools and clothing).
Raise the apprentice minimum wage to the same rate as the national minimum wage for apprentices under 19 and those in the first year of their apprenticeship.
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