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Trade earnings lag inflation and public sector pay

13th May 2026 | David Harris

Demand for skilled labour has stalled as activity slows on building sites across England and Wales, according to the biggest payroll in the construction industry. 

Hudson’s latest analysis shows average weekly earnings of £1,022 during April, just 2.3% higher than the same month last year.

Hudson April Pay Trends data

This is well below the current inflation rate* of 3.4% and less than half the 5.2% increase in earnings in the public sector**. 

April earnings fell 6.8% from March in keeping with seasonal trends with tradespeople taking time off during the Easter holidays. 

Year on year, the best-performing trades in April were plastering (+13.1%), plumbing (+11.5%) and joinery (10.3%). 

Commenting on the figures, regional account manager David Harris said: “Demand for self-employed tradespeople is flatlining, which ties in with what economic forecasters are saying about slowing sales of concrete and steel and reduced appetite for new-build housing, particularly in London. 

“Unless the situation in the Middle East is resolved soon, rising fuel costs and reduced availability of chemicals will lead to further increases in material prices which are always quick to go up and slow to come down.”

The latest construction purchasing managers index, which is based on a survey sent to 150 companies, reported the steepest input cost inflation since January 2022 and sharp fall in overall business activity. 

Region April 2026 Average Month on Month % Change Year on Year % Change
North East £885 3.0% 17.5%
North West £933 -7.0% 1.7%
Yorkshire & Humber £993 -5.0% -5.4%
East Midlands £1,026 -6.0% -2.7%
West Midlands £984 -6.9% 10.1%
Wales £1,131 -10.1% 4.5%
East of England £1,104 -7.1% 3.6%
London £1,060 -4.8% 2.3%
South East £1,067 -7.9% 1.3%
South West £1,001 -10.8% -5.6%

To view our interactive pay trends map click here

 

Hudson tracks average pay for 17 different trades across 10 regions in England and Wales, supplying labour market statistics to the Bank of England to inform policy decisions on skilled labour demand. 

The company serves a national client base of 2,600 construction SMEs, ranging from specialist subcontractors to medium and large-sized businesses.

* Latest ONS inflation figures here
** Latest public sector earnings here

Contributor - David Harris

Regional Account Manager and Compliance Expert

Joined Hudson: 2011

David Harris is our regional account manager for South East and South London, serving clients from one-man bands to large contractors with more than a 1,000 operatives.

With 35 years’ industry experience, David helps firms maintain compliance with ever-changing legislation through mock CIS inspections, developing their understanding of HMRC requirements and advising on the right contracting models for people supplying different construction-related services.

He recently identified compliance gaps at a well-established commercial electrical contractor in Kent which he explained and resolved, providing peace of mind to owner-managers focused on winning, delivering and getting paid for work in a highly competitive market.

Expertise: CIS Inspections, Payroll Management, Tax and Employment Law, Compliance Guidance, Status Disputes, Workplace Audits, Contracting Models

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