Employment in the UK construction industry has increased by almost 11% in the past five years, however in the past 12 months there has been less than 1% growth according to Inventory Base.

The analysis revealed that in 2024 the UK construction industry employed an estimated total of 380,200 employees, a light increase of 0.7%, or 2,615 employees, since 2023, but a 10.6% increase since 2019. 

Sián Hemming-Metcalfe, Operations Director at Inventory Base, said: “The Chancellor has been promising bold action on housebuilding, but current employment data tells a more cautious and less optimistic story. Long-term growth exists, but in the past year the sector has stalled and even slipped in residential construction. 

“Meeting housing targets takes more than headlines; it demands investment in skilled labour and practical support. Without meaningful intervention, supply will keep falling behind demand, piling pressure not just on house building, but also on a rental market already strained by high demand and limited availability. More homes could start to ease that pressure, giving tenants more choice and tempering rents, but only if homes are accessible to renters and not just owner-occupiers. 

“With the Autumn Budget only months away, it’s the Prime Minister’s chance to prove that he and the Chancellor truly are ‘in lockstep’ and prepared to deliver.”

The long-term increase has been largely driven by the construction of utility projects for electricity and telecommunications, a sub-sector that has seen employment numbers increase by more than 100% in the past five years, and 15.7% in the past 12 months alone. 

Annual employment growth has been sluggish or even negative across relevant housebuilding sub-sectors such as plumbing, heat and air conditioning installation (2.3%); electrical installation (1.4%); floor and wall covering (1.1%); plastering (1.1%); joinery installation (0.3%); development of building projects (0.1%); painting and glazing (0%); and other building completion and finishing (-6.9%).