Happy New Year! An era of new hope and opportunities, yet for many HR leaders, the challenges remain as pressing as ever. Across multiple UK industries, we continue to navigate a widening gap between rising unemployment and acute skills shortages – a tension that is increasingly hampering growth, innovation and competitiveness.
Returning to work, the headlines were stark and reinforced that reality. The Times reported that “economists say UK unemployment may reach an 11-year high in 2026,” attributing the forecast to a combination of sluggish economic growth, persistent inflationary pressures and recent tax increases.
Yet other data points underline the paradox, and the contradiction at the heart of the labour market. In housing and construction, the Construction Industry Training Board (CITB) has repeatedly warned that the UK will need hundreds of thousands of additional workers over the coming years to meet demand. This need is being driven by housing delivery, major infrastructure investment and the growing requirements of the net zero transition.
At the same time, an ageing workforce and high attrition rates mean the pipeline of new entrants and career changers remains insufficient. These shortages are already manifesting in project delays, rising costs and reduced confidence in delivery across the sector.
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Crucially, this is not a challenge confined to housing and construction alone. Just before Christmas, the health innovation minister announced the launch of new qualifications aimed at addressing a 145,000-strong skills gap in the UK’s MedTech sector. Similar concerns have been voiced across the digital and defence industries over the past year, each grappling with the same fundamental issue: demand for skilled workers far outstripping the supply of people equipped to fill those roles.
A headache for HR
This juxtaposition of high unemployment alongside chronic skills shortages creates a complex challenge for HR leaders, requiring solutions that go beyond traditional recruitment and retention measures. It is no longer enough to simply offer competitive pay or flexible benefits; organisations must actively invest in people to attract talent, develop capability, and create a culture where employees feel valued, supported, and empowered to grow.
The magic formula? Invest in people
Motivation and retention increasingly depend on investment in development, upskilling, and apprenticeships. Forward-looking organisations are recognising that professional growth, mentorship, and structured career pathways are critical levers in building both loyalty and long-term organisational resilience.
One area that I passionately believe in is apprenticeships. They offer a unique solution in combining practical, hands-on experience with structured learning, allowing employees to develop real-world skills while contributing meaningfully to business outcomes. Far from being a short-term programme, apprenticeships are a strategic investment in the workforce of the future, enabling companies to future-proof their talent pipelines and embed capability at all levels of the organisation.
Apprenticeships offer a practical and proven remedy. By combining hands-on experience with structured learning, they allow individuals to contribute meaningfully from day one while developing critical technical and leadership skills over time.
National Apprenticeship Week next month is a timely reminder of the opportunities apprenticeships can bring. It’s also a time to highlight common misconceptions; apprentices are not just school-leavers! In England (2024/25), over half (51.3%) of new starts were 25 or older. Just 21.2% were under 19, and 27.5% were 19–24, with an average age of around 29. This reflects a seismic shift in the system: adult learners now form the majority, highlighting the value of apprenticeships across all career stages.
My mission this year
These stats perfectly align with our mission at PfP Thrive this year – to make learning accessible for everyone, be they 16 or 60.
We’re kicking off 2026 by working with businesses across the housing and construction sectors to map clear career pathways for all employees – from new entrants to seasoned professionals seeking upskilling. Our new skills centre in Derby is open and filled with students of all ages, but we need to connect with more HR leaders this year to open up more opportunities.
I hope that many HR leaders in my sector, and across other sectors, push collaboration like this. For us the message is simple: people must be a priority this year. Invest in them, nurture their growth, and ensure they have every opportunity to thrive – and your organisation will benefit in return.
Tom believes that everyone should have the opportunity to thrive in their chosen career. His passion is straightforward: supporting individuals and creating an environment where anyone, especially those furthest from the job market, can flourish.
As the Academy Director at PfP Thrive, his role is to ensure that the organisation's strategic mission of providing world-class learning, while developing, supporting, and encouraging every learner, is fulfilled.
- Tom Arey
- Tom Arey
