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3.6.1 Government intervention

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Question 22

Extract C: Skills gaps in the UK green construction and retrofitting sector

The green construction and retrofitting sector is facing a severe shortage of skilled heat pump installation technicians and insulation specialists. Around 34% of employers in green construction report hard-to-fill vacancies, compared with a national average of 21% across all industries.

A significant barrier is the lack of standardized vocational training and clear pathways for career progression. Many modern school leavers perceive construction work as low-skilled and manual, unaware of the high-tech digital skills now required for smart-home retrofitting. Currently, women make up less than 12% of this workforce.

Furthermore, the sector suffers from an ageing demographic, with over 55% of experienced tradespeople aged 50 or over. Replacing these workers is difficult due to the rigorous certification and safety standards required for low-carbon installations, which have long lead times for training.

Both construction companies and the government must act to reduce labour immobility to benefit the green construction sector. Suggested measures include expanding apprenticeships, offering targeted retraining subsidies for existing tradespeople, launching nationwide recruitment campaigns, and fostering partnerships between local colleges and developers.

With reference to Extract C and your own knowledge, discuss policies businesses and government might implement to reduce labour immobility to benefit the green construction sector.

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3.6.1 Government intervention Questions

  1. A Level
  2. /Economics
  3. /3.6.1 Government intervention