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 拢904 a week during July, handing them an extra 拢124 over the month.
In the East Midlands, labour costs hit an all-time high with an average pay rate of 拢1,014 a week. Demand is being driven by new regeneration, housing and infrastructure projects.
Hudson Contract managing director Ian Anfield said: 鈥淭he housing market is booming with the price of the average UK home increasing by nearly 拢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 鈥榣evelling up鈥� agenda, which is adding to confidence in the sector.
鈥淭he 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.鈥�
RegionJuly 2021 AverageMonth on month % changeYear on year % changeNortheast拢7504.00%0%Northwest拢8483.50%2.80%Yorkshire & Humber拢8233.40%-1.60%East Midlands拢1,0142.60%15.80%West Midlands拢9080.40%-1.50%Wales拢9157.50%0%East of England拢9682.20%0.20%London拢8917.20%-0.90%Southeast拢9412.80%-1.80%Southwest拢8826.90%0.20%
Hudson Contract, a 拢1.6bn-turnover group, is the UK鈥檚 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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