What's Happening?
The construction industry has experienced a significant decline in its self-employed workforce, dropping by 20% over the past six years. According to data from the Office for National Statistics, the number
of self-employed workers in the sector fell from 920,000 in the third quarter of 2019 to 756,000 in the third quarter of 2025. This reduction is attributed to factors such as Brexit, the pandemic, and sector retirements. The loss of flexibility in the workforce is making it challenging for the industry to adapt to changes in demand. Additionally, the overall employment in the sector has decreased by 12%, highlighting a reduction in capacity. The end of freedom of movement from the EU to the UK in January 2021 led to over 240,000 workers leaving the industry between 2019 and 2022.
Why It's Important?
The decline in the self-employed workforce in the construction industry has significant implications for the sector's ability to respond to market demands. The reduced flexibility may hinder progress on critical priorities such as clean energy, new housing, and retrofitting projects. The exodus of skilled EU workers due to Brexit and the pandemic has exacerbated the situation, impacting the industry's capacity to train and recruit new staff. This trend poses challenges for the industry's growth and adaptation to economic conditions, where inflation remains high and growth has stalled. The reliance on subcontracting and self-employment has been incentivized by UK laws, further complicating efforts to rebuild a trained domestic workforce.
What's Next?
Urgent and ambitious joint action between the government and trade sectors is required to address the decline in the construction workforce. Without changes in procurement, tax, social security, and employment rights laws, the industry may struggle to regrow a properly trained domestic workforce. The increase in the number of women working in the sector, up by 6.7% since 2019, offers a positive note, but broader efforts are needed to ensure sustainable growth and capacity building in the industry.
Beyond the Headlines
The decline in the self-employed workforce highlights deeper issues within the construction industry, including the over-reliance on subcontracting and self-employment. This reliance has reduced the sector's capacity and willingness to invest in training and recruitment. The situation underscores the need for systemic changes to create a more balanced and sustainable employment model that can support long-term industry growth and adaptation to evolving economic and environmental priorities.
