Turner & Townsend have found that a lack of skilled green collar construction workers is seeing in-demand trades command annual salaries of over £134,000
According to a new report by Turner & Townsend, all UK regions are suffering from a shortage of skilled green collar construction workers as competition for labour has pushed costs to record levels in the UK.
The International Construction Market Survey (ICMS) 2024 report indicates that rising costs for specialist green contractors are particularly high.
Outside of London, the average UK wage for these specialists is £47 per hour. This is around twice the cost of general labourers.
The shortage of skilled construction workers threatens UK net zero targets
High wage inflation also threatens the UK’s delivery of its decarbonisation goals.
All nine UK regions surveyed reported skills shortages and 78% of UK markets reported that the shortage is having a major impact on programmes.
London ranks as the 10th most expensive construction market globally
Average construction costs in the capital have risen to £3,502 per m2 compared to 2023, when costs were £3,024 per m2.
Insulation specialists and solar heat pump installers in London now earn around £70 per hour, and wages have soared by 22% in the last 12 months.
Green collar construction workers are now paid two and a half times more than general construction labourers, who typically earn £28 per hour in the capital, according to the report.
Construction inflation is coming down year-on-year
The report forecasts that despite the high labour costs and wage inflation, the UK’s average inflation in 2024 will be 3.0%, falling from 4.2% in 2023.
The forecast will be welcomed by the sector, which has been affected over the past few years by the Covid-19 pandemic and the impact of high energy prices.
“Hundreds of thousands of new trained specialists are required”
Chris Sargent, managing director of UK real estate, at Turner & Townsend, said: “We’re seeing the rise of the green specialist across the UK. As a nation, we have a relatively old and inefficient building stock, and construction is absolutely central to meeting our net-zero goals and making our homes, offices, and public buildings fit for the future.
“Fundamentally, this can’t be done without the workforce. Hundreds of thousands of new trained specialists are required to give the sector the capacity it needs for the green transition.
“High wages may make the role more appealing to many, and attract these much needed skills. But green construction cannot afford to be in a separate tier of costs from traditional work. We need to help make net zero achievable and affordable by investing now in building and training the pipeline of skilled workers we need, and by adopting innovative digital tools to improve productivity and outcomes.”
