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Wed December 01 2021

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Average wage reaches £50k a year for east midlands self-employed

21 Oct Latest data from payroll services from Hudson Contract show significant regional variations, with average earnings in September 2021 ranging from £782 in the northeast up to £1,012 in the east midlands.

That means the average self-employed person in construction in the east midlands is earning more than £50,000 a year, if they take no more than two weeks off.

Overall, average earnings for self-employed construction tradespeople were down 1.7% compared to August to £913 but this is 4.7% ahead of September 2020.

London and the northwest both saw their third consecutive monthly increase , according to Hudson Contract’s latest analysis of pay trends.  Average weekly earnings for self-employed tradespeople in London increased by 1.8% to £938 during September while in the northwest, earnings increased by 3.3% to £887.

Hudson Contract managing director Ian Anfield said: “We estimate that through Covid the industry has been short of as many as 140,000 tradespeople, or 10% down on where we could have been, which has helped drive up labour rates in the face of high demand. Our latest pay trends suggest London and the northwest are becoming pinch points for this skills shortage.

“Skills shortages – once an acute regional problem – has been exacerbated across the country by the self-employment income support scheme (SEISS).”

Official statistics show construction workers have claimed grants totalling nearly £11bn through the scheme, which would amount to hundreds of millions of man hours.

Ian Anfield added: “The industry only suffered a two-week lockdown in March 2020 and were it not for labour shortages and material supply blockages it would have fully recovered to pre-pandemic levels fairly soon after. The housing market is still strong at the same time as people are continuing to spend on extensions and improvements rather than going on holiday. As SEISS ends, many will return to work but because huge infrastructure projects such as Hinkley Point and HS2 are in full swing, government departments have accelerated ‘shovel-ready’ projects and the ongoing housing and domestic work, demand will continue to outstrip supply.”

Region September 2021 average Month on month % Change Year on year % Change
Northeast £782 -2.9% 4.8%
Northwest £887 3.3% 1.7%
Yorkshire & Humber £805 -4.1% -1.6%
East midlands £1,012 -1.0% 18.8%
West midlands £917 -4.9% 1.2%
Wales £932 0.3% 5.5%
East of England £983 -1.0% 3.6%
London £938 1.8% 10.1%
Southeast £937 -3.4% -0.7%
Southwest £849 -5.4% 1.6%

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