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Sun September 26 2021

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Rising labour costs add to inflationary pressures

24 Aug Average weekly earnings for self-employed construction workers in England and Wales reached £904 last month.

Earning his money
Earning his money

The cost of skilled labour increased by 3.6% in July 2021, highlighting the inflationary pressures in the construction industry supply chain.

New payroll data from Hudson Contract show average earnings for self-employed tradespeople rose to £904 a week during July, handing them an extra £124 over the month.

In the East Midlands, labour costs hit an all-time high with an average pay rate of £1,014 a week. Demand is being driven by new regeneration, housing and infrastructure projects.

Hudson Contract managing director Ian Anfield said: “The housing market is booming with the price of the average UK home increasing by nearly £25,000 over the last year. We expect strong demand for new housing and renovation schemes to continue for the foreseeable future. The government is committed to big infrastructure investments as part of its ‘levelling up’ agenda, which is adding to confidence in the sector.

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“The challenge for construction firms will be in managing rising costs caused by shortages in building materials and skilled labour. We encourage ministers to consider how the industry can increase access to skilled freelancers from Europe under the new immigration system. Self-employed subcontractors make up the most productive and flexible pool of resource in the industry and Britain needs them to deliver these projects on budget and on time.”

RegionJuly 2021 AverageMonth on month % changeYear on year % changeNortheast£7504.00%0%Northwest£8483.50%2.80%Yorkshire & Humber£8233.40%-1.60%East Midlands£1,0142.60%15.80%West Midlands£9080.40%-1.50%Wales£9157.50%0%East of England£9682.20%0.20%London£8917.20%-0.90%Southeast£9412.80%-1.80%Southwest£8826.90%0.20%

Hudson Contract, a £1.6bn-turnover group, is the UK’s largest provider of tax status and employment contract services to the construction industry and supplies more than 2,500 companies across England and Wales.

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