Construction News

Mon October 18 2021

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Cost of skilled labour rose 2.8% in August

22 Sep The cost of hiring skilled labour for building sites climbed by 2.8% last month.

Because they're worth it...
Because they're worth it...

Latest payroll data from Hudson Contract show average weekly earnings for self-employed tradespeople increased to £929 per week during August.

Earnings across all regions of England and Wales increased for the second consecutive month.

Year on year, earnings rose by 5.9%, underlining the inflationary pressures in the construction industry supply chain.

In the East Midlands, labour costs hit a new all-time high of £1,022 per week, with demand driven by new regeneration, housing and infrastructure projects.

Hudson Contract supplies payroll services to a client base of more than 2,500 small and medium-sized contractors.

Managing director Ian Anfield said: “Most construction companies are reporting full order books, driven by strong demand for new housing and renovation work. The industry is facing a lot of challenges due to labour and material shortages. Costs are rising on a daily basis, which is squeezing margins and making it difficult to price new projects, and shortages are causing delays in existing projects.

“Many companies are looking forward to the end of the government’s self-employment income support scheme this month, which should push more people back to work.”

Region August 2021 average Month on month change Year on year change
Northeast £805 7.3% 5.2%
Northwest £859 1.3% -1.4%
Yorkshire & the Humber £839 1.9% 3.3%
East Midlands £1,022 0.8% 20.1%
West Midlands £964 6.2% 6.5%
Wales £929 1.5% 5.2%
East of England £993 2.6% 6.3%
London £921 3.4% 2.1%
Southeast £970 3.1% 5.1%
Southwest £897 1.7% 8.7%

A survey by employment law firm Citation indicates that wage inflation could be even higher. It polled 110 firms from across the construction industry in July and about 60 of them said that their staffing costs had risen by at least 30% since last year.

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