Trade earnings rise 3.3% in peak summer season despite sector slowdown

Labour rates hit £1,062 per week during August, up 3.3% year-on-year, though down 0.2% month-on-month. The best-performing trades were shopfitting (+4% at £1,130), demolition and wrecking (+1.6% at £1,034) and roofing (+1.6% at £912). 

The year-on-year increase in earnings highlights the continued strong demand for skilled trades in spite of economic and political uncertainty. Although at 3.3%, construction subbies might not feel better off as the increases fall short of the CPI inflation rate, which ONS says was 3.8% in July and rising. 

There are worrying times ahead as planning permission for new homes fell last quarter to the lowest level since 2012, the new Building Safety Regulations are holding up projects, and the government is under pressure to cut spending to balance the books.

Meanwhile, the departure of deputy prime minister Angela Rayner led to the appointment of a new housing secretary, the 10th in a decade, and union calls for the government to enact the forthcoming Employment Rights Bill in full. 

The wider uncertainty was reflected in the latest survey of construction purchasing managers which showed business activity fell for the eighth consecutive month, although at a slower pace. 

On a more positive note, UK infrastructure financing deals are set to reach a record this year as investors compete to buy assets and the government signs off on new projects, according to the Financial Times. 

Ian Anfield, managing director of Hudson Contract, said: “Despite broader economic headwinds and ongoing political uncertainty in housing policy, skilled tradespeople continue to command premium rates.

“As time goes on, long-term EU workers go home and can’t be replaced and skilled operatives who held CSCS cards under grandfather rights are banned from sites. These factors have created false demand for the self-employed but how long that can last is uncertain.

“The long-promised planning reforms look likely to arrive too late with demand stifled by the cost of borrowing and uncertainty around jobs and the wider economy. If the government can figure out how to stimulate demand in a planning friendly environment, housebuilding and the infrastructure to support it will boom.”

Hudson provides the most accurate indication of trade pay trends across the sector, publishing average pay for 17 different trades across 10 regions in England and Wales. We supply statistics to the Bank of England, informing policymakers with the latest insights on demand for skilled labour.