Former cabinet minister Alan Milburn, who authored the Department for Work and Pensions report into Neets (16- to 24-year-olds not in education, employment or training), described the situation as “more than an economic crisis – it is a moral one”. His findings show that six in 10 Neets have never had a job, while 84% want to work or train but are “finding the door of opportunity closed”.

According to the Office for National Statistics, entry-level roles have fallen by around 1.6 million over the past two decades, and apprenticeship starts among young people have dropped by 35% since 2017. The wider economic impact is estimated at £125bn a year in lost potential.

BESA believes the building services sector could help reverse these trends. Its new Labour Market Intelligence (LMI) study, carried out by Pye Tait Consulting, highlights the industry’s urgent need for digital and practical skills as heat pumps, smart building systems and energy-efficient retrofit work reshape job roles.

“Our industry has a growing problem with adopting new and emerging technologies, but Neets are a fully digital generation – they have never known anything else,” said Jill Nicholls, BESA’s director of competence and compliance. “Let’s solve our problem by harnessing all that under-exploited potential.”

The study found that 75% of employers struggle most with recruiting apprentices and trainees, with strong demand expected for labourers (37%), apprentices (33%) and trainees (30%) in the coming years. Many firms also report difficulty accessing suitable training provision.

While employers say traditional skills remain strong, they face shortages in areas such as building controls, energy systems, heat pumps, ductwork and ventilation. Competition from other sectors and a lack of awareness about building services careers continue to limit the talent pipeline.

“Neets do not see our sector as a destination for them – they don’t see the opportunities and the rewards,” added Nicholls. “Now is the time to bring these two groups together.”

Employers surveyed expect the building services workforce to grow by 11% over the next five years, with installation and maintenance roles seeing the fastest expansion. Growth in heat pumps, smart heat networks and AI-driven design is expected to further reshape skills needs.

Nicholls said a coordinated national effort is now required: “A concerted campaign to promote opportunities for young people in this, and other economically and socially critical sectors, is needed to solve two of the UK’s most pressing problems: the shortage of opportunities for Neets and looming skills shortages for built environment employers.”