Building Scotland’s future means investing in construction skills
Recruitment challenges and rising labour costs are putting Scotland’s construction workforce under increasing pressure, threatening the sector’s ability to deliver the homes, infrastructure and energy projects Scotland needs.
The latest Scottish Chambers of Commerce Quarterly Economic Indicator found that 70% of construction firms reported recruitment difficulties, an increase of 25 percentage points compared to last year. At the same time, 92% identified labour costs as a source of rising pressure.
These figures highlight a growing challenge for the sector. Businesses need to recruit and train more people to deliver Scotland’s housing, infrastructure and energy ambitions, but the cost and uncertainty involved in doing so are making workforce investment increasingly difficult.
The longer-term requirement is just as pressing. The Construction Workforce Outlook 2026–2030: Scotland estimates that the industry will need to recruit an additional 2,590 workers each year to 2030 which is around 12,950 over five years.
This includes people needed to support growth, replace retiring workers and address the balance between those entering and leaving the industry.
A construction business in Dumfries and Galloway told us that interest from potential apprentices remains strong, but limited financial support can prevent smaller firms from creating places.
“The construction industry is feeling the effects of underinvestment, particularly in the lack of young people coming through the ranks. There is no shortage of people wanting to join apprenticeship schemes, but smaller firms often lack the funding needed to offer placements.”
For smaller employers, offering that opportunity can mean making a long-term financial commitment without the certainty of a long-term pipeline of work.
The Workforce Outlook also notes that most construction companies employ fewer than five people and typically have visibility over only three to six months of work.
Other operating costs are adding to the strain, with fuel, raw materials and utilities all placing pressure on construction firms.
Employers are also continuing to feel the effects of the increase in employer National Insurance Contributions introduced in April 2025, which has added to the cost of recruiting and retaining staff.
An Ayrshire business said rising employment and fuel costs were having a disproportionate effect because labour accounts for most of its operating costs.
“Recent increases in employment costs, including changes to Statutory Sick Pay and the minimum wage, are placing significant pressure on our business. With labour accounting for between 60% and 70% of our costs, these increases have a particularly large impact.” – Construction firm in Ayrshire
The Scottish Government’s national skills plan, due in spring 2027, is an opportunity to strengthen the connection between skills investment and the needs of employers.
For construction, that means protecting apprenticeship and training provision, targeting support towards areas of greatest skills demand and ensuring businesses have access to the workforce
