Wages for subcontractors in construction have reached the highest level since December 2019 and the highest on record across many parts of the UK.

According to research by the industy’s biggest payroll firm Hudson Contract found that subbies in London, the South East, the South West and Wales are earning the most.

Average weekly earnings increased by 1.8 per cent to £944 during last month, the highest November pay levels on record. Compared with the same period last year, earnings increased by 4.7 per cent.

Workers in the East Midlands saw average weekly earnings rise to over £1000 per week, a 9% increase on 2020 earnings.

Ian Anfield, managing director of Hudson Contract, said: “Our analysis shows we are back in the normal cycle where people work more hours in the run-up to Christmas. Storms Arwen and Barra may have lost us a few days and contractors are fighting to get the materials they need but we are still within the most productive time of the year. The festive season is coming up and people know January will be slow with bad weather.

“The strong performance in the South West and Wales reflects the increasing investment in housing and infrastructure as part of the government’s ‘levelling up’ agenda. In London and the South East, growing demand for new housing and home improvements is feeding through to labour requirements and rates are catching up.

“Looking ahead, the removal of the red diesel rebate in April will hit groundworks contractors and quarrying companies the hardest and likely drive up material prices across the construction industry. The smaller and more agile firms on short-term contracts are able to react quickly and put their rates up as are the self-employed.”

November was a particularly good month for surfacing contractors, who enjoyed record earnings at £888 per week – the equivalent of £42,600 per annum.