UK construction and tech firms are ditching traditional hiring – here’s why apprenticeships are suddenly hot
UK construction and tech companies are increasingly turning away from conventional recruitment methods in favour of apprenticeships.
A new survey by professional services firm BDO shows that half of mid-sized businesses are planning to increase apprenticeship hiring in 2026 following the government’s recent announcement of free training for apprentices under the age of 25.
BDO’s survey of 500 leaders of mid-sized businesses reveals that more than a quarter (26%) of those surveyed said they plan to start recruiting apprentices in 2026 and a similar number (24%) plan to increase their existing apprenticeship intake.
This trend can be seen across the board, but some sectors are leading the charge. More than half of businesses in the construction (56%), technology (55%) and financial services (54%) sectors are planning to either start hiring apprentices or expand their existing apprenticeships this year.
This comes following the government’s £725 million package of reforms to the apprenticeship system, announced in December, aimed at helping to tackle youth unemployment and drive economic growth.
As part of the package, the government has announced it will cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized business by removing the 5% co-investment rate for SMEs.
Hiring still in trouble
However, not all businesses are feeling so optimistic. Some businesses (11%) are planning to reduce overall headcount, with cost pressures, budget constraints for training and supervision, and uncertainty around business demand for 2026 cited as reasons to hit the brakes on hiring.
Separate research from BDO’s ‘Young Minds’ survey of 2,000 individuals aged 18-25 showed that, whilst apprentices remain a popular career route, 16% of young people are completely unaware of degree-level apprenticeships.
Others are facing difficulties in accessing quality apprenticeships. A fifth of university students or graduates stated they would have reconsidered their choice to go to university if they lived somewhere with more apprenticeship opportunities.
This varies across the country, with more than a quarter of those from the North East (26%) and just under a quarter in the South West (23%) agreeing with this statement. In comparison, less than a fifth (15%) of young people in Greater London felt this way.
“It’s encouraging to see so many mid-sized businesses, the engine of the UK economy, doubling down on their apprenticeship hiring, despite challenging economic conditions,” said Richard Austin, Partner at BDO.
“Apprenticeships are by no means a new concept, but we know there is a shortage of high-quality, degree level apprenticeships. Those that do exist are often found in specific pockets of the UK making them less accessible to young people who are unable or unwilling to relocate.
“The government’s funding for apprentices under the age of 25 is a significant step forward in reforming our apprenticeship system, but it is clear from both businesses and young people that more needs to be done to spread opportunity.”
The government’s bet on youth
At the heart of this apprenticeship boom is the UK government’s £725 million reform package, announced late last year, aimed at supercharging youth employment and economic growth.
Key changes include fully funding apprenticeship training for under-25s at small and medium-sized enterprises (SMEs), scrapping the 5% co-investment requirement, and introducing flexible short courses in high-demand areas like AI, engineering, and digital skills starting from April 2026.
These reforms are expected to create 50,000 additional apprenticeship spots over the next three years, with a focus on getting young people who are not in education, employment, or training (NEET) into the workforce.
For construction firms, this means easier access to trainees in roles like bricklaying and site management, while tech companies can fast-track talent into coding, data analysis, and cybersecurity positions. As Brian Berry, Chief Executive of the Federation of Master Builders, noted, “Enabling the nation’s small builders to train apprentices under the age of 25 for free is a much-needed boost to plug the construction skills gap.”
