Site Labour Rates Hit Record High as Cost Inflation ReturnsLabour rates hit a new high last month, reaching £1,048 per week for self-employed tradespeople.
Latest figures from the industry’s biggest payroll provider show average earnings for self-employed tradespeople increased 1.9% to £1,044 per week during October.
The return of inflationary pressure in the labour market mirrors price increases in parts of the materials and product market with some manufacturers citing employer national insurance contributions as fuelling the need to raises prices.
Construction Output increased by 0.8% in the third quarter with growth coming solely from a 2% increase in new work, as repair and maintenance feel by 0.6%
The upward trend figure held despite a slowdown in September where overall construction activity was largely flat recording a meagre 0.1% increase in output, with new work slightly down for the month.
More volatile orders figures were down 22% in the third quarter suggesting a potential hiatus in work going forward.
Construction firms accounted for 16.2% of all insolvencies in England and Wales in September according to the Insolvency Service, with 292 registered construction businesses becoming insolvent.
In the year to September, the total number of construction firms becoming insolvent was 4,264. This was a 0.7% decrease on the insolvencies recorded in the same time period the previous year.
Of all cases where the industry was captured in the statistics, construction experienced the highest number of insolvencies in the year to September 2024.
Planning Approvals Plummet As Growth Remains FragileThe total value of construction work approved by councillors has plummeted, new data shows.
A report by sector analyst Glenigan found that detailed planning consents averaged £8.9bn per month between August and October. This was 23% lower than the previous three-month period – and a two-fifths fall compared with August-October last year.
An average of just £2.5bn of major projects – those worth at least £100m each – was approved last month during the three-month period. That was 70% lower on a year-by-year basis.
Sources
Site labour rates hit record high as cost inflation returns | Construction Enquirer News
New work drives Q3 construction output uplift | Construction Enquirer News
Construction still top sector for insolvencies, ONS reveals | Construction News
Planning approvals plummet as growth remains fragile | Construction News
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