London’s Construction Sector
A labour market analysis
Exploring the Mayor of London’s priority sectors.
March 2025
Introduction
The Construction sector is critical in delivering many of London’s long-term strategic goals, such as increasing housing development, expanding transport infrastructure, and achieving net zero carbon emissions.
The purpose of this report is to provide a comprehensive analysis of the sector’s key labour market trends and characteristics, considering a wide range of indicators. By examining the sector’s performance through an array of lenses and comparing it to other industries and regions, this analysis aims to offer valuable insights for strategic planning and support evidence-based policy making across London.
This report is divided into 7 sections, each analysing a different facet of the sector and its workforce.
- People in Work: Explores how many jobs are in the sector and how employment has evolved over time.
- Worker Characteristics: Examines the professional and demographic traits of workers in the sector.
- Job Quality: Provides insights into earnings and the overall quality of jobs within the sector.
- Businesses: Investigates the profile and economic contribution of the sector’s businesses.
- Demand: Analyses how employer recruitment activity for sector-specific roles is changing.
- Skills Needs: Identifies the specific skills that employers within the sector are seeking.
- Education and Training: Reviews the provision of education and training relevant to the sector.
An FAQ guide has also been published alongside this report to help users navigate its contents.
Definitions: All definitions used in this report related to the sector - including industries, occupations and subject areas - are set out in the definitions and additional resources section, at the end of this report.
Data: Links to the raw underlying data are included under each respective chart(s), where the data used is publicly available. The data included in this report refers to the latest annual data available at the time of publication but may vary by data source and is subject to revision.
Section 1: People in Work
How many jobs are in the sector, and how might it change over time?
What’s in this section?
➤ Overview ➤ Headline trends of people working in the sector ➤ Sub-sector composition of employment ➤ Numbers working in key occupations ➤ Industry projections (2025-2035)
Click to expand
Section 1: Overview
This section explores job trends in the construction sector and its sub-industries, highlights key occupations, and examines regional job growth forecasts for the sector.
Pandemic impact on employment: The number of jobs in London’s construction sector has yet to recover fully from the COVID-19 pandemic and was already declining somewhat before 2020. In 2023, the sector accounted for 293,300 jobs — an 8.7% decrease compared to its 2019 pre-pandemic level – and equivalent to 4.6% of all jobs in the capital. This highlights the sector’s ongoing challenges to rebuild its workforce, even as other industries in London have largely rebounded.
Key sub-industries and occupations: The two largest sub-industries — building construction and specialised construction activities — account for over 90% of the sector’s employment. Key occupations such as carpenters, electricians, and plumbers represent some of the largest employment areas, reflecting the sector’s reliance on skilled trades.
Strong future growth projections: The NFER anticipates rapid growth for the sector, forecasting a 1.4% annual increase in employment from 2025 to 2035. This growth rate is significantly higher than that of other industries in London, positioning construction as an important driver of job creation in the coming decade.
Headline job trends in the sector
Job number decline: In 2023, London’s construction sector accounted for approximately 293,300 jobs — a 15% drop from its 2017 peak of 346,000. Despite consistent demand for construction-related services, this sustained shortfall over recent years indicates significant challenges in growing the sector’s workforce. Brexit is likely a key contributing factor to this trend, as it has reduced access to skilled European labour sources that the industry has traditionally relied upon.
Adverse pandemic impact: Job numbers in London’s construction sector were significantly affected by the COVID-19 pandemic and have yet to fully recover. This contrasts with the broader labour market in London, where total employment rebounded strongly in the years following the pandemic. The sector’s labour-intensive nature made it particularly vulnerable to lockdowns and social distancing measures, which hindered its ability to operate at full capacity during much of the pandemic.
Lower shares of regional and sectoral employment: Construction’s share of total jobs in London has remained relatively stable in recent years at around 4.6%, although this is down considerably from 5.9% in 2017. In addition to that, the share of total UK construction jobs located in the capital has also declined since 2017, highlighting the London-specific challenges post-pandemic facing the sector.
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The Annual Population Survey (APS) is a continuous household survey covering the UK, with the aim of providing estimates between censuses of main social and labour market variables at a local area level. The APS is not a stand-alone survey but uses data combined from two waves of the main Labour Force Survey (LFS) with data collected on a local sample boost. It provides a measure of the number of people in work which differs from the concept of jobs, since a person can have more than one job and some jobs may be shared by more than one person. As such, it is the preferred measure of employment and the associated characteristics of workers, including demographics, educational attainment, and occupation.
- Bespoke APS dataset: As part of this research into the Mayor of London’s priority sectors, the Office for National Statistics (ONS) has published bespoke APS tables for the GLA according to specific sector (SIC) definitions and using the region of work to assign the location of each job rather than the respondents’ region of residence. The number of jobs reported in this analysis using the APS is also the sum of main jobs and second jobs, so the figures may not represent the number of people by industry.
- Increased LFS uncertainty: Since the COVID-19 pandemic, there have been ongoing challenges with LFS response rates which have caused increased uncertainty and volatility in the production of its more granular labour market statistics. As such, LFS-based labour market statistics are currently considered ‘official statistics in development’ until further review. Because of the increased volatility of LFS figures, estimates should be treated with additional caution and are subject to revision. APS statistics are, however, still considered ‘accredited official statistics’, although uncertainty within the LFS may have some volatility implications for the APS, particularly for detailed breakdowns at regional levels.
- Workforce Jobs (WFJ) is a quarterly measure of jobs in the UK and is the preferred measure of short-term employment change by industry (SIC 1-digit only), since it provides a more reliable industry breakdown than the LFS. The number of jobs measured are the sum of employee jobs, self-employment jobs, government-supported trainees, and His Majesty’s Forces. The estimates are compiled from several sources, including Short Term Employer Surveys (STES), the Quarterly Public Sector Employment Survey (QPSES), and the Labour Force Survey (LFS). Note: Given that WFJ can also display a high degree of volatility quarter-to-quarter, the figures in this report are presented as the annual averages.
- The Business Register and Employment Survey (BRES) is an annual survey of around 87,000 businesses across the UK. It provides employee and employment estimates at detailed geographic and industrial levels and is considered the primary source for employee estimates at a detailed workplace, regional, and industrial level. In terms of coverage, its employment estimates are the sum of employees and working owners but do not include those self-employed or agency workers who do not pay VAT or PAYE, and so may underestimate the true number of people working in some sectors.
Sub-sector composition
Dominant sub-industries: In 2023, the construction of buildings and specialised construction activities together accounted for nearly 90% of employment in the sector, representing 49% and 41% of jobs, respectively. While these have consistently been the largest sub-industries within London’s construction sector, their employment shares have fluctuated from year-to-year.
Employment in building construction driving recovery post-pandemic: Employment in the construction of buildings has seen a particularly strong recovery since 2020, having been the most adversely affected sub-industry by the pandemic. Latest 2023 figures show it has now surpassed pre-pandemic levels - employing almost 100,000 people - even as the other construction industries have faltered.
People working in key occupations
Understanding the construction sector requires both industry and occupational perspectives. While the industry view focuses on business activities (above), the occupational lens (below) sheds light on the key roles and skills driving these activities.
Skilled trades dominate: In terms of job numbers, the largest occupations within London’s construction sector are predominantly skilled trade roles, including carpenters and joiners, electricians and electrical fitters, plumbers, heating and ventilating installers, and repairers, along with other construction and building trades not elsewhere classified (n.e.c). Of all those people employed in sector-related occupations in London, approximately 8.6% alone (26,000) work as carpenters and joiners.
Professional roles: Among the professional and managerial roles, production managers, directors in construction, civil engineers and architects are among the most prominent occupations in the capital’s construction sector.
While industry-based analysis (Standard Industrial Classification - SIC) is essential to understanding a sector’s labour market performance, granular occupation data (Standard Occupational Classification - SOC) can offer further complimentary insights, particularly in relation to a sector’s skill needs and make-up.
To support the identification of specific sector-relevant SOC 4-digit occupations for each of the Mayor’s priority sectors, GLA Economics used Lightcast’s ‘staffing pattern matrix’ - which combines BRES and LFS microdata to produce an occupational make-up of an industry. GLA Economics then selected those occupations that were either found to be highly concentrated in, or specific to, that sector. For example, the vast majority of carpenters are identified as working in construction industries.
In doing this, more general occupations - such as sales, business administration and many customer service roles - which are typically employed in large numbers across London’s industries were excluded from the analysis. It should be noted however, that any given occupation may be employed in a range of sectors, and as such, an occupation included in one sector (e.g. creative) may also be relevant to another (e.g. construction). Therefore there are likely to be some occupational overlaps between priority sector areas in terms of key occupations.
The occupations identified as part of this exercise are the same as those used to employer demand and skills needs from job postings in Section 5 and Section 6 of this report.
The full list of sector-relevant SOC occupations is also available in the definitions and additional resources section, at the end of this report.
Projected change in industry job numbers (2025 - 2035)
Strong growth projected: According to the latest projections from the National Foundation for Educational Research (NFER) and their Skills Imperative 2035 research, construction employment in London is expected to experience rapid growth. Job numbers in the construction sector are expected to grow by an average of 1.4% annually between 2025 and 2035, adding around 49,000 jobs over this period. This suggests that approximately 1 in every 6 new jobs created during this time will be in construction.
Faster than average: This anticipated growth far exceeds the 0.4% average annual growth forecast for all other industries in London, highlighting the construction sector’s crucial role in driving new employment opportunities across the capital.
However, as with all projection models, there is a considerable degree of inherent uncertainty and therefore models which use alternative assumptions - such as by GLA Economics (2022) - may indicate considerably different trends.
The labour market projections produced by Institute for Employment Research (IER) and Cambridge Econometrics (CE) for The Skills Imperative 2035 are inherently uncertain due to the complexities of forecasting long-term trends. Developed in 2021/22, they try to account for existing technological and environmental trends. However, they can not capture unforeseen future events and were created during a period of considerable economic uncertainty following Brexit and the COVID-19 pandemic. As forecasting involves judgment and assumptions, uncertainties increase over longer timeframes, particularly at local levels. Therefore, these projections should not be used for precise workforce planning but rather as broad benchmarks to inform policy and strategic discussions.
For more information see General Guidelines for The Skills Imperative 2035: Occupational Outlook – Long-run employment prospects for the UK.
Section 2: Worker Characteristics
What are the professional and demographic characteristics of those working in the sector?
What’s in this section?
➤ Overview ➤ Demographics (incl. detailed breakdowns) ➤ Types of occupations in the sector ➤ Highest level of educational attainment ➤ Employment status (employee vs. self-employment) ➤ Employee type (full-time vs. part-time) ➤ Geographic distribution (sub-regional partnerships)
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Section 2: Overview
Reliance on foreign-born workers: London’s construction sector is highly reliant on foreign-born workers, with 25% from the EU and 24% from the rest of the world. This dependence has steadily grown over time, particularly on workers from non-EU countries.
Demographic characteristics: The sector workforce is steadily ageing, male-dominated, majority white, and employs fewer people with a disability than other sectors of London’s economy.
Skilled trades dominate: Skilled trade workers make up 41% of the construction industry jobs in London in 2023, compared to just 4% in all other industries.
Increasing professionalisation: The share of professional roles, including managerial staff, is gradually increasing making up almost 34% of jobs in 2023, though this is still significantly lower than the 48% seen in other industries.
Lower education and qualification levels: Construction workers in London are less likely to hold a degree (35%) compared to other industries (65%). Additionally, a higher share holds lower-level qualifications, such as A-levels or GCSEs.
Self-employment prevalence: Self-employment is notably higher in construction, with 44% of workers being self-employed, compared to 16% across other London industries and 36% in the construction sector in other UK regions.
Demographic characteristics
Detailed demographic breakdowns
- Ageing workforce: The construction sector workforce in London is steadily ageing. The proportion of young employees (16-29) has been progressively declining since 2015, while a growing number of existing workers are transitioning into older age brackets (50+).
- Benchmark comparison: In comparison to other industries in London, construction employs fewer young people (18% vs. 20%). However, when compared to the construction sector in other regions of the UK, London has a younger age profile, reflecting the capital's younger demographics overall (27% vs. 36.5% for older workers).
Broad occupational composition of industry
Skilled trades dominate: Skilled trade occupations accounted for 41% of construction jobs in London in 2023, compared to just 4% across all other industries in the capital.
Increasing professionalisation: Managers, directors, and senior officials made up nearly one in five jobs (19%) in the construction industry, while professional occupations accounted for 15%—less than half the share seen across all industries in London (35%). Despite this, the sector has been gradually experiencing increased professionalisation over time.
London vs. UK comparison: The occupational mix in London’s construction sector is broadly similar to the rest of the UK, though London has more managers, directors, and senior officials (19% vs. 13%) compared to other UK regions.
Highest level of educational attainment
Rising educational attainment: London’s construction workforce has become increasingly highly educated over time, with the share of workers holding a degree or equivalent rising from 20% in 2010 to nearly 35% in 2023.
Below the London average: Despite this growth, construction workers in London still hold fewer degree-level qualifications than those in other industries. In 2023, 35% of construction job holders had a degree as their highest qualification, compared to 65% across all industries in London. This gap reflects the sector’s reliance on skilled trades, which typically require practical skills rather than advanced higher education qualifications.
London vs. other UK regions: Compared to the rest of the UK, London’s construction workforce is more highly educated, with 35% of workers holding a degree or equivalent, versus almost 22% across other UK regions. This difference may highlight London’s strength in the professional and administrative aspects of the sector.
Highest level of education groupings:
Degree or equivalent: Includes higher education degrees such a Bachelor’s Degree, Master’s Degree, DPhil/PhD and Degree level Apprenticeships (RQF level 6+ qualifications).
Higher Education: Includes higher vocational qualifications such as Higher National Diplomas / Certificates (HND/HNC) and Foundational Degrees (RQF level 5 qualifications).
GCE, A-levels or equivalent: Includes A-levels or equivalent, AS-levels, International Baccalaureate, and Advanced/Higher level Apprenticeships (RQF level 3-4 qualifications).
GCSE grades A*-C or equivalent: Includes O-Level/GCSE Grades A*-C and equivalents, and Intermediate Apprenticeships (RQF level 2 qualifications).
Other qualifications: GCSE < Grade C and equivalents, Entry-level Qualifications, Key / Core / Essential/ Functional Skills and Other qualifications (RQF level 1 and below qualifications).
No qualification: No qualification recorded.
Further information on the specific qualifications included in each education grouping can be found here (pg.336-339) using the mapping here (pg.26).
Employment status
High prevalence of self-employment: In London’s construction sector, 44% of workers are self-employed, significantly higher than the 16% average across all other industries in the capital. While self-employment offers greater flexibility in work hours, it often comes with less job security and limited benefits compared to full-time employment.
Post-pandemic recovery: The pandemic led to a sharp decline in self-employment within the sector, but shares have since rebounded to pre-COVID levels.
London vs. other UK regions: Self-employment is also more prevalent in London’s construction sector compared to the rest of the UK, where 36% of construction workers are self-employed.
Employee type
Prevalence of full-time employment: 77% of workers in London’s construction sector are in full-time positions. This represents a slight decline from over 80% in 2019, before the pandemic.
Comparison with other industries: The share of full-time employees in the construction sector is broadly similar to that of other industries in London.
London vs. other UK regions: When compared to the construction sector in other UK regions, London lags behind, with full-time employment in construction reaching 87% outside the capital.
Geographic distribution
Central London dominance: Approximately 52% of construction jobs in London are located within the Central London Forward sub-regional partnership (SRP). Since 2015, this area has consistently accounted for over half of the sector’s jobs, although its share has declined somewhat from the 60% recorded in 2019, before the COVID-19 pandemic.
Business location concentration: The high concentration of construction jobs in Central London aligns with the fact that many businesses are registered or headquartered in this area. However, it’s important to note that, given the nature of their on-site work, many construction workers are likely to operate across London, depending on project demands.
Sub-regional employment concentration: From a sub-regional employment perspective, the construction sector represented the largest share of total jobs in the West London Alliance SRP, accounting for 6.5% of total jobs in the area. In contrast, the South London Partnership SRP had the lowest share at just below 5%. Despite having the highest number of construction jobs, Central London Forward’s share constituted only 5.5% of total jobs within its SRP area.
While interpreting these findings, it is important to remember that many of the jobs located within London may be held by people who reside outside of the capital, or outside of the SRP in which their workplace is located.
The City of London and each of London’s 32 boroughs are members of one of four sub-regional partnerships (SRPs) in the capital. These SRPs serve a vital administrative function within local government by convening key stakeholders to collaboratively address London’s strategic economic and social issues, including skills, employment, infrastructure, and land use.
London’s Four SRPs:Section 3: Job Quality
What are the earnings and quality of jobs in the sector?
What’s in this section?
➤ Overview ➤ Hourly industry earnings ➤ Annual advertised salaries for key occupations ➤ Additional job quality indicators
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Section 3: Overview
Relatively well-paid and steady earnings growth: Median nominal hourly earnings in London’s construction industry have steadily increased since 2015, reaching £22.05 as of 2024, higher than the national average for the sector and broadly in line with median earnings across all industries in London.
Higher salaries for professional roles: Derived from job postings, managerial and professional construction occupations—such as quantity surveyors and civil engineers—tend to command the highest advertised salaries. Overall, construction-related roles across the board offer advertised salaries well above the London Living Wage, aligning with industry-level data.
Positive job quality indicators: London’s construction sector performs relatively well on key job quality measures, including lower levels of low pay, unpaid overtime, non-permanent jobs, and zero-hour contracts compared to other industries in the capital.
Challenges with working hours and decision involvement: The sector faces challenges in both providing satisfactory working hours for its workers and involving them in company decision-making processes, with London employees reporting relatively high levels of dissatisfaction on these job quality metrics.
Earnings and advertised salaries
Industry earnings
Steady earnings growth: Median nominal hourly earnings in London’s construction industry have grown steadily since 2015, reaching £22.05 per hour in 2024.
Widening earnings distribution: Beyond the median (50th percentile), the range (the gap between the 25th and 75th percentiles) has widened, suggesting earnings are becoming more skewed toward higher earners.
Higher than the national average: Median earnings in London’s construction sector are higher than the UK construction average (£18.51) but are broadly in line with overall median earnings in London across all industries (£21.87).
Earnings variation by occupation: While overall earnings in the construction sector are relatively high, there is likely significant variation by specific occupation, with some roles earning considerably more than others (see section below).
Keeping pace with inflation: When adjusted for inflation, median real earnings in London’s construction sector have risen by approximately 6.7% compared to 2015. This increase outpaces the 5.6% real wage growth across all industries in London, where post-pandemic inflation pressures have largely eroded pre-pandemic gains.
The Annual Survey of Hours and Earnings (ASHE), is the most comprehensive source of information on the structure and distribution of earnings in the UK. ASHE provides information about the levels, distribution and make-up of gross earnings and paid hours worked for employees in all industries and occupations. The ASHE is based on employer responses for a 1% sample of employee jobs, using HM Revenue and Customs Pay As You Earn (PAYE) records to identify individuals’ current employers. The ASHE does not cover the self-employed nor does it cover employees not paid during the reference period.
Owing to the way the ASHE data is structured, it has not been possible to construct estimates of median earnings for the sector in all other UK regions, nor has it been possible to construct a comparison to all other industries in London. As such the benchmark comparisons presented are for the sector in the UK as a whole, and for all London industries as a whole.
ASHE data for the latest year in the series is considered provisional and will be revised in a future ONS release.
Median advertised salaries (occupations)
Extracting median advertised salaries from job postings offers valuable insights into market rates for sector occupations in London, providing data not available from other sources, though it comes with important caveats (see notes).
High salaries for construction occupations - particularly professional: Professional and managerial occupations in construction—such as quantity surveyors, construction supervisors, and civil engineers—command amongst the highest advertised salaries.
Above LLW: Encouragingly, all of the most recruited occupations in the construction sector, including various skilled trades, had advertised salaries well above the London Living Wage (LLW), reflecting the industry’s generally high earnings.
Median advertised salaries are a useful metric to understand market rates, but have several important caveats:
Approximately 40% of job postings in London contain salary information, although there is significant variation between different occupational groups and, therefore, figures may not be fully representative of an occupation’s true median earnings. As such, median advertised salary data should be interpreted cautiously.
Where advertised salary is presented in a job description as an hourly wage, it is converted, by Lightcast, to an annual gross full-time equivalent salary figure.
Similarly, while advertised salary figures are presented as full-time equivalent, it is important to note that actual hours worked may differ.
Job quality indicators
To support the analysis and measurement of job quality and good work in London, the ONS have produced regional sector specific indicator estimates, building upon their broader 2021 publication.
Relatively strong performance related to pay and security: Compared to all other industries in London, the construction sector performs relatively well on several key indicators of job quality, including: having a lower incidence of low pay, fewer issues with unpaid overtime, fewer non-permanent jobs, and more opportunities for progression, than among other industries in London.
Unsatisfactory work hours and higher prevalence of zero-hour contracts: However, the sector performs slightly less favourably in some other areas with construction workers expressing some dissatisfaction with working hours (underemployment), in particular, compared to other industries.
Not feeling involved in decisions: The most significant issue, both for the construction sector and across all industries in London, is the widespread feeling among workers that they lack involvement (or feeling represented) in their employer’s decision-making processes.
Section 4: Businesses
What are the characteristics and contribution of businesses in the sector?
What’s in this section?
➤ Overview ➤ Trends in the number of registered enterprises ➤ Industry output (Gross Value Added)
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Section 4: Overview
Significant role in London’s economy: In 2024, London’s construction sector included over 61,000 enterprises, making up 11.5% of all businesses. While this is lower than the 14.5% seen in other UK regions, it underscores construction’s contribution to the capital’s economy.
Steady business growth and resilience: The number of construction enterprises has shown resilience, continuing to grow even through the pandemic, unlike other sectors where growth has plateaued. This highlights the construction industry’s enduring dynamism amid broader economic challenges.
The dominance of micro-enterprises: Micro-enterprises (0-9 employees) dominate the sector’s make-up, accounting for 96.5% of construction businesses, considerably higher than the 89.4% in other industries. This trend reflects high levels of self-employment and small-scale contracting.
GVA contribution and output challenges: The construction sector contributed £20.1 billion to London’s economy in 2022, representing 4.3% of the capital’s total Gross Value Added (GVA). However, despite this contribution, the sector has struggled to recover its pre-pandemic output levels, with London’s share of national construction output declining from 18% to 16% post-pandemic, indicating a slower recovery compared to other regions and industries.
Registered enterprises in the sector
Headline trends in the number of sector businesses
Construction enterprises in London: In 2024, London’s construction sector consisted of over 61,000 enterprises, representing 11.5% of all businesses in the capital.
Comparison to other UK regions: London’s share of construction enterprises is lower than the 14.5% seen across other UK regions. This is likely due to London’s concentration in sectors such as technology, finance, and professional services, which are more prevalent than in other regions of the UK, reflecting the city’s unique economic profile.
Resilience and growth: The number of construction enterprises in London has remained resilient, even through economic disruptions like the pandemic. Since 2022 however, there has been a slowdown in the number of new businesses emerging in the sector.
Enterprise composition
Sub-industry composition: The largest sub-industry within the sector is specialised construction activities, which make up 49% of all enterprises. This is closely followed by the construction of buildings (46%), which has seen notable growth since 2013. This trend could reflect the city’s rising demand for housing and infrastructure.
The dominance of micro-enterprises: Micro-enterprises (0-9 employees) dominate London’s construction sector, accounting for 96.4% of all construction enterprises—a considerably higher share than the 89.3% seen across other industries in the capital. This dominance likely reflects the high levels of self-employment and small-scale contracting common in construction. Additionally, the share of micro-enterprises has been steadily increasing since 2010, suggesting a growing trend towards small-scale, flexible business models.
Sector Output: Gross Value Added (GVA)
An analysis of Gross Value Added (GVA) — a measure of the value generated by producing goods and services — provides insights into the contribution that the construction industry makes to London’s local economy.
Headline trends in sector GVA
Significant contribution: The construction sector makes a sizable contribution to London’s economy, accounting for £20.1 billion — or 4.3% — of the capital’s total GVA in 2022.
Sluggish performance: The sector’s output was heavily impacted by the pandemic and the resulting restrictions, and, despite a strong rebound in 2022, it has not yet returned to pre-COVID levels, unlike many of London’s other industries. However, even before the pandemic, the share of total GVA in London accounted for by the construction sector had begun to decline suggesting an increasing sluggishness in performance relative to other sectors.
Declining national contribution: Before the pandemic, London’s construction sector contributed 18% of the UK’s total construction output. However, post-pandemic 2022, this share has fallen to around 16%, suggesting that London has recovered more slowly compared to other regions.
Sub-industry composition of output
- Construction of buildings: In 2022, the construction of buildings accounted for over 54% of the construction sector’s total GVA, making it the largest contributor by far. Its share has been steadily growing since before 2010. This is followed by specialised construction activities at 31% and civil engineering at almost 15%.
Section 6: Skill Needs
What specific skills are employers seeking?
What’s in this section?
➤ Overview ➤ Top skills in demand for specific occupations ➤ Digital skill needs
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Section 6: Overview
Unique and shifting skillsets: Every occupation related to the construction sector has its own unique skill requirements, which are constantly evolving.
Gradually growing demand for digital skills: Demand for digital skills in construction occupations is on the rise, with 36% of job postings currently requiring at least one digital skill, although this is lower than the 45% seen across all other occupations in London.
Variability in digital skill needs: The requirement for digital skills varies significantly across construction roles, with postings for professional roles the most likely to expressly require them.
Skills in demand for key occupations
Assessing sector-related skills requirements at the detailed occupational level is essential because skills needs vary significantly between roles. Each occupation within a sector requires distinct competencies, and understanding these differences enables more targeted training and workforce development that aligns with the specific and evolving demands of each job.
This section uses job posting data to identify the skills in demand for the most recruited construction-related occupations in London. The analysis highlights the most sought-after common/transferable skills, as well as the specialised/technical skills critical to each role, and examines how their prevalence in job postings has shifted since the pre-pandemic period.
Common Skills are prevalent and transferable across many different occupations and industries, including both personal attributes and learned skills. (e.g. ’Communication or ‘Problem solving’). These include soft skills, human skills, and general competencies.
Specialized Skills are typically only required within a subset of occupations or equip one to perform a specific task (such as ‘Econometrics’ or ‘Lifeguarding’). These are sometimes known as technical skills or hard skills.
More information is available at Lightcast’s skills taxonomy.
A thorough understanding of the skills, qualifications, and competencies that define each occupation, and distinguish them from one another, is essential for policymakers, educators, and employers alike. It allows them to identify similar job roles based on their shared skillsets, and, in doing so, enables them to start to build occupational career pathways. These not only inform the sector’s overall workforce development strategy but also equip individuals with the knowledge they need to better understand and progress their careers.
In addition to the skills analysis in this report, tools such as the Institute for Apprenticeships and Technical Education (IfATE) occupational maps, the UK Careers Service’s career explorer and the U.S. O*NET occupational descriptions also provide valuable frameworks for understanding specific role requirements, and what is required to transition between them.
Digital skills
Tracking and analysing the prevalence of digital skill demand in the labour market is important given its cross-cutting nature and potential to drive innovation and productivity across all sectors. As technology continues to transform the nature of work, understanding the demand for these skills will ensure that the workforce can adapt to evolving job requirements as they arise.
Gradually rising demand in construction: Demand for digital skills in occupations related to the construction sector has been steadily growing. Currently, 36% of job postings for construction-related occupations explicitly require at least one digital skill — though this is significantly lower than the 45% seen across all other occupations in London. Fluctuations in overall sector demand for digital skills can depend on changes in the underlying occupational mix.
Uneven distribution across roles: The need for digital skills is not evenly spread across construction roles. CAD and architectural technicians are the most likely to require digital skills (82%), followed by electrical engineers (52%) and other professional roles. In contrast, skilled trades and manual-oriented jobs like plumbers and carpenters are the least likely to require these skills, both at approximately 8-9%.
Most in-demand digital skills: The most sought-after digital skills in construction include computer aided design (AutoCAD), Microsoft Office tools (Excel, Word, Outlook), Autodesk Revit building information modelling software, and forecasting tools.
Building upon Lightcast’s own definition of ‘software’ skills, GLA Economics has further developed and expanded this definition using Lightcast’s skills taxonomy. Through this process, GLA Economics have identified over 13,000 specific ‘digital’ skills, or skills that closely imply digital or software expertise.
This granular definition can help provide insights into the demand for digital skills within the sector in London. However, it is unlikely to offer a complete picture of digital skill needs. Some relevant digital skills may not yet have been identified, while in other roles digital expertise may be implicitly inferred rather than explicitly stated. As such, this analysis should be considered only indicative of demand within the sector and its related occupations. It is also important to note that changes in the underlying occupational makeup of the sector over time may also affect the observed demand for digital expertise.
GLA Economics’ definition of digital skills remains experimental and is constantly being refined to reflect its rapidly evolving nature. As such, prevalence estimates may fluctuate with each iteration of this release.
The rapid development of digital technologies — such as artificial intelligence (AI), machine learning, and advanced robotics — is expected to bring significant changes to the labour market. These advancements may automate routine tasks and reshape the nature of some occupations, with impacts anticipated to vary by sector and skill level. Roles requiring critical thinking, creativity, and specialised expertise are likely to adapt, while those focused on repetitive tasks may face greater challenges. Experimental analysis by the ONS on automation (2019) and DfE on AI (2023) highlights differing levels of exposure across occupations.
While the rapid speed of technological change means the overall impact of these new technologies remains uncertain, it emphasises the importance of fostering adaptable skills and supporting lifelong learning that helps individuals and organisations respond effectively to change.
Definitions and Resources
Have a question or some feedback?
Please contact Jeff Dwan-O’Reilly or Monet Durieux at GLA Economics.
