Sector leaders have warned {that a} 20 in line with cent drop within the choice of self-employed contractors over the last six years can have an affect at the trade’s flexibility.
It comes as information printed via the Place of job for Nationwide Statistics (ONS) on Tuesday (St Martin’s Day) confirmed there have been 756,000 self-employed employees within the development trade within the 3rd quarter of 2025 – a discount of 17.9 in line with cent at the 920,000 self-employed sector employees within the 3rd quarter of 2019.
David Crosthwaite, leader economist on the Construction Value Knowledge Carrier (BCIS), stated {that a} mixture of Brexit, the pandemic and sector retirements was once in charge.
“That lack of flexibility makes it more difficult for the field to reply to adjustments in call for,” he added.
The choice of self-employed employees has additionally lowered since the second one quarter of 2025, when the determine stood at 767,000.
The choice of folks hired at once within the sector may be down since 2019, via about 8.7 in line with cent from 1.41 million to one.28 million.
Crosthwaite stated the aid in employment around the trade – of 12 in line with cent – is a “stark reminder of ways a long way capability has eroded”.
“It provides to a hard financial combine the place inflation stays increased and expansion has stalled,” he stated.
Freedom of motion from the EU to the United Kingdom resulted in January 2021, which contributed to extra than 240,000 employees leaving the development trade between the primary quarters of 2019 and 2022.
Andrew Eldred, deputy leader government on the Electric Contractors’ Affiliation, stated: “The decline within the constructed surroundings team of workers since 2019 calls for pressing and impressive joint motion between executive and industry sectors if there’s to be any hope in any respect of growth on priorities similar to blank power, new housing and retrofit.”
The steep drop-off in self-employed employees “perhaps displays the exodus of professional EU employees resulting from Covid and Brexit, fairly than any certain rebalancing of employment practices throughout the trade”, he added.
He stated UK procurement, tax, social safety and employment rights regulation has incentivised the “over-reliance on subcontracting and self-employment” in the United Kingdom, a lot more than different advanced nations, lowering the field’s capability and willingness to coach and recruit extra group of workers.
“Except and till this example adjustments, communicate of regrowing a correctly skilled home team of workers is prone to stay simply communicate,” he added.
The knowledge additionally displays, on the other hand, that the choice of girls running within the sector has higher via 6.7 in line with cent because the 3rd quarter of 2019, from 297,000 to 317,000.
