EU worker shortages driving up London labour rates

Aaron Morby 4 years ago
Share

A shortage of EU workers is starting to drive up labour costs in London, according to a leading payroll specialist.

Mechanical and engineering tradespeople's weekly earnings top £1000
Mechanical and engineering tradespeople's weekly earnings top £1000

New payroll data for self-employed workers during shows average earnings in London increased by 4.5% to £885 per week.

Ian Anfield, managing director of employment contract services specialist Hudson Contract, said: “We are starting to see the impact of people leaving the UK ahead of the EU Settlement Scheme deadline on June 30 and not being replaced by incomers.

“First and foremost, this is affecting London, which has the highest concentration of foreign construction workers and the most transient labour market.

“The Brexit effect on labour supply is slower the further away you go from the capital and many EU workers have settled in the North of England.”

He added: “In central London, the prime housing market is growing for the first time since the start of the pandemic, a sure sign of the high spirits felt across the entire sector.”

Region May
Average
April to May
% Change
Year on Year
% Change
North East £671 -8.6% -7.8%
North West £827 -4.1% 4.0%
Yorkshire and the Humber £821 0.5% 9.0%
East Midlands £954 1.7% 17.2%
West Midlands £920 3.5% 1.4%
Wales £887 2.8% 8.7%
East of England £949 -0.3% 8.3%
London £885 4.5% 2.8%
South East £923 0.7% 5.4%
South West £863 1.9% 10.1%

The West Midlands also saw a significant rise in weekly earnings for subcontractors, increasing by 3.5% to £920 during May.

The region tends to have a larger supply of domestic tradespeople that have traditionally commanded higher earnings.

The cost increase mirrors an acute shortage of building materials in the West Midlands as a result of significant house building activity and major infrastructure projects in Birmingham including new stations for high-speed rail and facilities for the Commonwealth Games in 2022.

Anfield added: “There is shedloads of construction work about and growing pressure on the availability of both labour and materials.

“We expect some respite for construction companies with the closure of the government’s Self-Employment Income Support Scheme in September which should encourage claimants back onto sites.”

Last month, mechanical and engineering tradespeople had the strongest growth in earnings which rose 5.7% to £1,068 per week.

They were followed by joinery and plumbing contractors, whose earnings increased by 4.5% to £1,011 and £967 respectively.

 

 

Latest news

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
14 hours ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
22 hours ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
22 hours ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
22 hours ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
2 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
22 hours ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
21 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
1 day ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
2 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
2 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
2 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
3 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
3 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
2 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
3 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
3 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
3 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
3 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
3 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
3 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
3 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
3 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
6 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
6 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
6 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
6 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
7 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
6 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
7 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
6 days ago