Latest payroll data from Hudson Contract show average weekly earnings for self-employed tradespeople increased to 拢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 拢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: 鈥淢ost 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.
鈥淢any companies are looking forward to the end of the government鈥檚 self-employment income support scheme this month, which should push more people back to work.鈥�
| Region | August 2021 average | Month on month change | Year on year change |
|---|---|---|---|
| Northeast | 拢805 | 7.3% | 5.2% |
| Northwest | 拢859 | 1.3% | -1.4% |
| Yorkshire & the Humber | 拢839 | 1.9% | 3.3% |
| East Midlands | 拢1,022 | 0.8% | 20.1% |
| West Midlands | 拢964 | 6.2% | 6.5% |
| Wales | 拢929 | 1.5% | 5.2% |
| East of England | 拢993 | 2.6% | 6.3% |
| London | 拢921 | 3.4% | 2.1% |
| Southeast | 拢970 | 3.1% | 5.1% |
| Southwest | 拢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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