It’s the subject of endless debate by politicians of every stripe: how to fire up Britain’s economic growth.
Amid the heated arguments about tax rates or complex infrastructure projects, it’s easy to forget that growth can also be about something simpler – the economic activity all around us in our daily lives. And there’s a huge opportunity being missed, right in front of us.
The country’s shortage of skilled tradespeople means the UK could lose out on £98 billion in economic growth by 2030, according to research we have published today, in partnership with economics consultancy Cebr.
The numbers are stark. We’re already facing a shortfall of 166,000 tradespeople, with vacancy levels close to record highs. By 2030, this gap is projected to rise to as much as 250,000.
Demand is only set to grow as homeowners seek to improve the energy efficiency of their homes, a vital step on the road to net zero. Increasingly, more skilled installers will be needed for measures like insulation, heat pumps and solar panels.
If there’s no-one to do this work, much of it might not happen. One in five Brits have already had to delay or cancel projects to improve their home because they couldn’t find a suitable tradesperson. That not only has economic consequences, it also impacts our lives.
Yet despite the clear demand for skilled trades, too many young people are missing out on trade career opportunities. Our research found that only 13% of 16-25s were encouraged to consider career opportunities as a tradesperson by their school.
The glaring gender disparity in the trades is also holding Britain back. Just 2% of the UK’s tradespeople are women. Even by doubling the number, we could boost our annual growth by £800m. That’s a huge prize to leave on the table.
So how do we start to close the trade skills gap? We’re proposing three ideas that we believe would make a difference, requiring a joint effort from both business and government.
First, helping the National Careers Service to better present trade careers in school advice – from emphasising how trade roles can tackle climate change, to the chance to ‘be your own boss’. More tradespeople should be invited into classrooms to directly share the benefits of trade careers, particularly female role models.
Second, we need to make it easier and more financially attractive for SMEs to take on and retain trade apprentices. That means grants and national insurance breaks, combined with a simple one-stop advice and hiring service.
Finally, we need to make sure trade apprenticeships are financially viable for young people. It can’t be right that university students get loan support to cover their living costs, but there is nothing available for trade apprentices. That’s just reinforcing old prejudices against apprenticeships.
It’s time to shake off the stigma around trade careers. They are high quality jobs, with significant earnings potential, and should be valued just as highly as jobs that require a university degree. And by doing more to help young talent to enter the trades, we could support many years of sustainable growth.
