New analysis by the Local Government Association (LGA) reveals a growing mismatch between the construction industry's increasing demand for skills and a falling number of people gaining construction qualifications.
The LGA represents over 370 councils in England and Wales.
While the industry's forecasted annual recruitment need is up by 54% from 2013, there are 10,000 fewer construction qualifications being awarded by colleges, apprenticeships and universities.
In addition, there were 58% fewer completed construction apprenticeships last year than in 2009.
Over half (56%) of skilled trade vacancies are hard to fill, up from 46% in 2011 and almost triple the proportion of skilled hard to fill vacancies across the economy as a whole.
Councils are now warning this increasing mismatch is leaving the industry stranded without the skilled employees needed to deliver on the government's plans for housebuilding.
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LGA research has previously highlighted that between 16% and 25% of forecast economic growth could be lost up to 2022 if employers cannot recruit the skills and capabilities that they need.
This could include up to £24bn of output from the construction sector.
The LGA is now calling on the government to work with the construction industry, councils and education providers to develop a national 'Skills to Build' strategy to solve this growing shortage, delivered locally through the devolution process.
It said devolving powers to local areas would allow councils, schools, colleges and employers to work together to help unemployed residents and young people develop the skills to build.
Chair of the LGA's Housing Board, Councillor Peter Box, said: "For too long we've trained too many hairdressers and not enough bricklayers. Too few apprentices are getting the construction skills to build the homes and roads our local communities need and developers are struggling to recruit skilled labour to build new homes.
"Industry is clear that skills gaps are one of their greatest barriers to building. If we are to see the homes desperately needed across the country built and jobs and apprenticeships created, councils must be given a leading role.
"Skills demand will always vary significantly across the country. For example, the Northwest is desperate for bricklayers while the West Midlands have a higher demand for wood trades and interior fitters.
"Councils are best-placed to understand the needs of their residents and local economies but have no influence over skills training and employment support in their area.
"In return for increased funding and powers, councils, schools, colleges and employers could work together to reduce unemployment, close this widening construction skills gap and ramp up housebuilding."
(LM)
