As skills shortages dominate headlines, new payroll data shows younger workers are entering the sector in growing numbers.
Pulled from aggregated payroll records of over 500 UK construction businesses representing 13,000 employees, this fast-growing “toolbelt generation” is effectively anchoring the survival and growth of small businesses (SMEs), giving SMEs fresh opportunities to future-proof their workforces.
In January, Gen-Z employment across construction and trade SMEs rose 16.8% year-on-year, well ahead of every other generation, while Gen-Y employment in this sector grew 5.5%, Gen-X 6.7% and Baby Boomers 7.1% over the same period.
Why the Trades are Winning the Talent War
Across all generations, pay in the sector grew 9.6% year-on-year in January, based on a three-month rolling average. For younger workers weighing up the cost of university against vocational routes, the combination of immediate earnings and structured learning is proving more attractive than traditional academia.
Fabian, a 21-year-old electrician apprentice from London, chose the trade route after deciding university wasn’t for him at 18. “I didn’t like where I was at the time and I was bored,” he says. “I knew I wanted to have work that was active. I’ve always liked being handy. I’ve always liked working with electric, just in general.”
After shadowing his sister’s friend who worked as an electrician, he decided to commit to the path. “I liked it, so I decided to do an apprenticeship,” he explains. Fabian is currently completing a level four electrical installation and commercial apprenticeship, a path he feels offers better structure than previous vocational models.
“There are some apprenticeships where you just join the job and go to college once a week. They aren’t interlinked,” he says. “The fact that this works simultaneously – where they know what you’re doing on site and apply that to college – works well for me.”
Financial Security and Career Longevity
The financial benefits are tangible for those entering the trades early too. “I earn the most out of my friendship group,” says Fabian, who is already eyeing a move into commercial installation, noting that commercial work often commands higher pay.
Fabian isn’t an outlier. While the sector has long grappled with a ‘silver exodus’ of retiring Baby Boomers, this surge in youth participation suggests a structural shift in the workforce’s average age. This influx of Gen-Z talent isn’t just filling vacancies; it is providing a critical knowledge-transfer window before the most experienced tradespeople exit the industry for good.
Government Policy and SME Sentiment
Recent policy shifts may reinforce this trend. The Government’s plan to create 13,000 apprenticeship and T Level placements via its school rebuilding programme targets specific gaps for bricklayers, plumbers and engineers.
Employment Hero research shows that SME leaders are ready to meet this supply. 73% of SME owners intend to leverage new Government apprenticeship schemes. Furthermore, 46% of SMEs value apprenticeships and degrees equally, while 37% say they value the vocational route more.
Expert Perspective
Kevin Fitzgerald, UK Managing Director of Employment Hero, says:
“Our data shows that the UK construction and trade sector is ready to nurture young talent. With Gen-Z employment rising three times faster than other cohorts, it’s a clear sign they’re leading the revival of the blue-collar workforce. For SMEs struggling to recruit, the message is straightforward: young people are choosing the trades. The opportunity now is to train and retain them.”
The shift in SME sentiment suggests we are seeing the end of the “degree-as-default” era. As white collar sectors face hiring freezes and stagnant wage growth, the trades offer Gen-Z something increasingly rare: high wage growth and a career path that’s physically grounded in the real world. For the UK economy, this trend is a chance to rebalance the workforce. SMEs that embrace that now aren’t just filling gaps, they’re positioning themselves as new destinations for some of the UK’s most ambitious young talent.
