Hudson Contract, which provides payroll services to 2,600 construction SMEs, recorded a 1% increase in average pay during December 2022 to 拢1,002.
Hudson Contract found that the average pay packet in its 拢2b payroll was 拢945 per week during 2022, a below-inflation increase of 4.5% on 2021.
Managing director Ian Anfield said: 鈥淒uring the last calendar year, our clients have been telling us that tender opportunities are slowing down but they have full order books, which they are struggling to fulfil.
鈥淭he labour market is still feeling the effects of former chancellor Rishi Sunak鈥檚 coronavirus support schemes, which paid people a lot of money to sit at home. At the same time, huge infrastructure schemes like Hinkley Point and HS2 entered new phases and created extra demand for skilled labour.
鈥淗ouse-builders pushed ahead to get homes out of the ground before big changes to building regulations in the summer and consumers have been spending savings built up during lockdowns on home improvement projects.
鈥淲ith Brexit, we have consistently said the impact would be felt gradually over time and we are seeing the supply of skilled tradespeople from Europe withering on the vine. Europeans would always come here to work and then go home again but now nobody is replacing them. The routes for working visas are not practical for most construction companies and smaller businesses.
鈥淭hese are the forces driving up labour rates. They are creating plenty of opportunities for the self-employed to earn a handsome living as the most productive and flexible part of the labour market.鈥�
| Region | December 2022 average | Month on month % change | Year on year % change |
|---|---|---|---|
| Northeast | 拢768 | 2.9% | 3.2% |
| Northwest | 拢969 | 1.4% | 7.4% |
| Yorkshire & Humber | 拢978 | -0.3% | 10.6% |
| East Midlands | 拢1,037 | 1.9% | -1.5% |
| West Midlands | 拢985 | -1.2% | 4.2% |
| Wales | 拢973 | 1.9% | 2.9% |
| East of England | 拢1,101 | 0.8% | 7.5% |
| London | 拢1,062 | 2.0% | 4.5% |
| Southeast | 拢1,041 | 3.2% | 1.6% |
| Southwest | 拢942 | -1.3% | 2.3% |
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