Retaining older workers vital to meeting government's house building and infrastructure drive
The construction industry is experiencing a skills and labour shortage with thousands more workers needed to help the government meet its house building and infrastructure ambitions.
Older workers can provide a solution to these challenges, but only if employers in the sector fully commit to improving work for people in their 50s and 60s, writes Tracy Riddell, Senior Programme Manager with the Centre for Ageing Better.
The government’s housing and infrastructure plans are ambitious and include plans to build 1.5million homes by the end of the current parliament in 2029.
On top of that, there are firm proposals to accelerate up 150 major economic infrastructure projects, including railways and roads as part of the government's aim to get Britain building.
However, research by the Construction Sector Training Board shows that there is a skills shortage in the sector, and this is expected to reach more than 250,000 by the end of 2028.
Labour shortages are likely to be a key reason house building numbers are falling well below levels of demand. According to the Office for National Statistics (ONS) only 184,390 homes were built last year, which is far short of target. And activity in the UK construction sector fell in July 2025 at the sharpest rate since the height of the Covid pandemic.
A study by the British Standards Institution (BSI) discovered that fewer than one in five (15%) UK construction workers intend to keep working beyond retirement age, compared with three out of five who anticipate retiring between 61 and 65. This is much lower than the workforce in general, where around one in two British workers anticipate working beyond state pension age.
The industry recruits 200,000 people a year to but loses 210,000 a year, many of whom retire. With the Construction Industry Training Board estimating that between now and 2029, roughly 240,000 new people will be needed for the sector, retention of workers could be an overlooked solution to the skills and labour shortages.
In all sectors, health problems account for the main reason older workers leave the workforce. Each year, about 78,000 construction workers report ill health, including many injuries and musculoskeletal disorders and lung diseases.
While the physical nature of construction industry may mean older workers may not be able to continue in some roles until state pension age, employers should work to develop workplace cultures where conversations about age are normalised, and early discussions about health needs can be explored. This will identify opportunities to help these workers pivot to different, less physical roles which ensures the organisation retains their expertise.
On top of these challenges, workers in the construction industry face the issue of ageism, which can be found in many working environments, namely in recruitment, learning and development, health, and work benefits and in our social spaces.
Employers in construction could avoid older workers leaving a job earlier (due to health needs and/or commitments to elderly parents) if employees were more aware of the benefits they could be entitled to around reasonable adjustments or working in a more flexible way. This might not always seem realistic when considering ‘site’ working, but surely this is more effective than having to find replacements? Additionally, employers should consider how they are recruiting for jobs and where ageism may have crept in, the language and images used often sending sub-conscious messages that this job is not for people over 50.
In our social spaces and how we interact with each other is another place where ageism exists. For example, in 2022 a 69-year-old plumbing and heating engineer who colleagues called ‘Half-dead Dave’ was awarded almost £25,000 in compensation for age-related discrimination and unfair dismissal at an employment tribunal. While this is at the extreme end of workplace ageism, it does highlight how the value and importance of older workers can be overlooked which holds back employers as much as it does 50+ workers.
Ageism in construction will often not be a stand-alone form of discrimination but sit alongside other protected characteristics such as gender and ethnicity. Strong leadership, experienced managers, clearly understood policies and inclusive communication, all go a long way in shaping inclusive cultures.
Evidence clearly shows that the presence of older workers in an organisation delivers many positives. Multigenerational workforces drive productivity and innovation; recruitment and retention of older workers helps to meet skills and labour shortages. Let alone the skill transfer that can take place between experienced workers working alongside less experienced colleagues.
One of the ways that employers within the construction sector can fully realise the potential of older workers is by signing the Age-friendly Employer Pledge, a nationwide programme for employers who recognise the importance and value of older workers and commit to taking one action a year to improve work for people in their 50s and 60s.
More than 500 employers, across all sectors including 11 construction companies, have committed to being an Age-friendly Employer and receive guidance and support in creating an age-friendly culture, hire age-positively, encourage flexible working, support ongoing career development, and ensure that workers get health support when needed.
Construction companies who have signed the pledge have talked about how instrumental the programme in developing their inclusive recruitment and retention practices with 50+ workers now making up more than half of their workforce in some areas of their workforce.
Construction companies that have signed the Pledge are setting a clear example that they value the older workers they have and are eager to recruit more experienced workers.
This approach will put these employers in the best position possible to meet the looming skills and labour challenges the sector is facing.
This article first appeared in Construction Industry News on 16 September.