New figures from Employment Hero, a global leader in HR, hiring and payroll software, reveal that the rise in the ‘Toolbelt Generation’ continues, as Gen Z drives significant employment growth across construction and trade services.
Gen Z employment in the sector rose 16.8% year-on-year in January, according to new analysis of anonymised payroll data from more than 500 construction and trade businesses across the UK, representing around 13,000 employees.
The figures suggest that construction and trade services are among the UK’s fastest-growing industries for employment, with overall headcount across the sector up 9.9% year-on-year in January.
Rise of the toolbelt generation
Growth has been driven by the younger workforce, with Gen Z significantly outpacing other generations. By comparison, Gen Y employment grew 5.5%, Gen X 6.7% and Baby Boomer employment 7.1% year-on-year in January.
The outperformance of Gen Z points to a broader generational shift in career preferences. For many young workers, trade roles offer immediate earning power and a perception of resilience against AI displacement.
Skills shortages driving up wages
Wages in the sector are also growing. Driven by historic skills shortages and an ageing workforce, January data reveals that, across all age groups, wages in the sector grew 9.6% year-on-year, based on a three-month rolling average. This wage growth is especially attractive to younger people who are navigating early career opportunities amid a cost of living crisis.
2026: The year of apprenticeships
Employment Hero’s data comes as the government announces plans to expand early careers routes into the trades, creating 13,000 apprenticeship and T Level placement opportunities as part of its school rebuilding programme. The scheme includes training places for bricklayers, plumbers and engineers, signalling renewed focus on vocational pathways.
Separate data from Employment Hero found that apprenticeships are becoming increasingly central to workforce planning for UK SMEs. Recent survey findings reveal that 73% of SME leaders intend to leverage new government apprenticeship schemes.
Attitudes toward qualifications are also shifting, with 46% of SMEs valuing apprenticeships and degrees equally, and 37% valuing the vocational route more.
Kevin Fitzgerald, UK Managing Director of Employment Hero, said: “Our data shows that the UK construction and trade sector is ready to build and nurture young talent, offering them meaningful jobs and on the job learning. With Gen Z employment rising three times faster than other cohorts, it’s a clear sign that they are leading the revival of the blue-collar workforce. It’s clear from recent announcements that the government sees vocational training and apprenticeships as playing a huge role in addressing the UK’s youth unemployment challenge and our figures show that the sector is playing its role in driving towards that mission.”
