21st September 2021 | Hudson Contract
The cost of hiring skilled labour for building sites climbed by 2.8 per cent last month, according to our industry-leading analysis of pay trends. The figures highlight the inflationary pressures in the construction supply chain.
Payroll data show average weekly earnings for self-employed tradespeople increased to £929 per week during August. Year on year, earnings rose by 5.9 per cent.
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. Earnings rose in every region across England and Wales for the second consecutive month.
Ian Anfield, our managing director, said: “Most construction companies are reporting full order books, driven by strong demand for new housing and renovation work.
“This growth is creating challenges with 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.”
AUGUST 2021 AVERAGE WEEKLY EARNINGS OF FREELANCE TRADESPEOPLE: £929
| Region | August 2021 Average | Month on Month % Change | Year on Year % Change |
| North East | £805 | 7.3% | 5.2% |
| North West | £859 | 1.3% | -1.4% |
| Yorkshire & 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% |
| South East | £970 | 3.1% | 5.1% |
| South West | £897 | 1.7% | 8.7% |
To view our interactive pay trends map click here
We are the UK’s largest provider of tax status and employment contract services to the construction industry and supply more than 2,500 companies across England and Wales.
Hudson delivers the most accurate indication of subcontractor pay trends across the construction industry, publishing the average pay for a spectrum of 17 different trades split across 10 regions in England and Wales. It supplies statistics to the Bank of England to keep policymakers updated with real-time insights on demand for skilled labour.
Hudson Contract’s ‘Window on the Construction Industry’ gives you hard figures and data that is not available from any other source, with pay averages that reflect the amounts paid by a sample number of businesses – large and small – to specific trades during 2021.
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