The latest payroll data from Hudson Contract shows that the average weekly earnings for self-employed tradespeople had increased to £929 per week during August 2021. Year on year, earnings increased by 5.9%.
This increase has encouraged the cost of hiring labour to increase too, rising by 2.8% last month.
In particular, labour costs in the East Midlands hit a new all-time high of £1,022 per week, with demand driven by new regeneration, housing and infrastructure projects. Earnings also rose in every region across England and Wales for the second consecutive month.
Ian Anfield, Hudson Contracts 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.”
Hudson Contract is a leading supplier to the construction industry with a client base of more than 2,500 small and medium-sized contractors.