The lack of homegrown talent has long been a concern for Hodgson and is especially worrying amid a tense conclusion to the 2014 World Cup qualifying campaign.
And with Premier League clubs continuing to use a low proportion of English players, Hodgson maintains it restricts his options at international level.
"Quite a few of the games I go to do not have any English players," he told Sky Sports at a League Managers' Association event.
"So, one has to be very careful these days when talking about the Premier League and talking about the Englishness of it, because more than two thirds of the players in the league are not English.
"We have one of the lowest number of homegrown players to choose from in all the leagues, which, if you are national team manager, is not a great advantage, to be frank."