Hudson Contract, which provides payroll services to 2,600 construction SMEs, recorded a 1% increase in average pay during December 2022 to £1,002.
Hudson Contract found that the average pay packet in its £2b payroll was £945 per week during 2022, a below-inflation increase of 4.5% on 2021.
Managing director Ian Anfield said: “During 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.
“The labour market is still feeling the effects of former chancellor Rishi Sunak’s 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.
“House-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.
“With 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.
“These 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.”
| Region | December 2022 average | Month on month % change | Year on year % change |
|---|---|---|---|
| Northeast | £768 | 2.9% | 3.2% |
| Northwest | £969 | 1.4% | 7.4% |
| Yorkshire & Humber | £978 | -0.3% | 10.6% |
| East Midlands | £1,037 | 1.9% | -1.5% |
| West Midlands | £985 | -1.2% | 4.2% |
| Wales | £973 | 1.9% | 2.9% |
| East of England | £1,101 | 0.8% | 7.5% |
| London | £1,062 | 2.0% | 4.5% |
| Southeast | £1,041 | 3.2% | 1.6% |
| Southwest | £942 | -1.3% | 2.3% |
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