01 Oct Construction Labour Rates Hit Record Highs – What Does It Mean for Employers in East Anglia?
Construction labour rates have reached their highest recorded level, with average weekly earnings for self-employed tradespeople now exceeding £1,100.
For construction companies, contractors and facilities management businesses across East Anglia, the message is clear: securing skilled and experienced workers is becoming increasingly competitive.
According to research from Hudson Contract, reported by the Construction Enquirer on 25 September 2026, average weekly earnings for self-employed construction tradespeople reached an all-time high of £1,110 during August.
That represents a 3.1% increase on July and a 4.5% increase compared with August last year.
For employers already operating under tight project margins, rising labour costs present an important challenge. But the reasons behind these increases are perhaps even more significant.
Which construction trades are seeing the biggest increases?
The latest figures show that the rise isn’t being felt equally across every trade.
According to Hudson Contract’s data:
- Plumbing saw average rates increase by 10.4% month-on-month, reaching £1,348 per week.
- Joinery increased by 8.9%, reaching £1,247 per week.
- Steel and timber frame contracting increased by 7.6%, reaching £1,102 per week.
- Across all the trades tracked, average weekly earnings reached £1,110.
These figures relate specifically to self-employed tradespeople and should not be interpreted as standard PAYE salaries or fixed rates for every worker. Actual pay and charge rates will vary according to experience, qualifications, location, project requirements and the type of contract.
Nevertheless, the figures demonstrate just how competitive the skilled labour market has become.
Why are construction labour rates reaching record levels?
Interestingly, the latest figures don’t necessarily mean that the construction industry is booming.
Hudson Contract managing director Ian Anfield told the Construction Enquirer that current rates remain strong “not because the sector is booming but for structural reasons that are reducing the supply of skilled labour.”
This is an important distinction.
Construction businesses can be facing a challenging project market while simultaneously having to pay more to secure the people they need.
A shrinking pool of skilled labour
One of the major issues highlighted is the availability of experienced tradespeople.
Changes to skills-card requirements, the continuing impact of Brexit and changes to Right to Work requirements have all contributed to changes in the available construction workforce.
For employers, this means that having a project ready to start does not necessarily mean having immediate access to the right people.
The most experienced and productive workers can be in particularly high demand.
The most skilled workers remain highly sought after
One of the most interesting observations from the latest figures is the difference between highly skilled workers and those at the other end of the market.
With construction companies continuing to operate under tight margins, the Construction Enquirer reports that the least-skilled and least-productive operators are finding it more difficult to secure work.
At the same time, the highest-skilled and best-paid subcontractors remain in strong demand.
For employers, this reinforces an important point:
The cheapest available worker isn’t necessarily the most cost-effective worker.
A highly experienced tradesperson may command a higher rate, but their productivity, reliability, quality of work and ability to complete tasks correctly can have a significant impact on the overall cost of a project.
Why are workers working more?
The current market is also being influenced by the behaviour of workers themselves.
Hudson Contract reported that households have been more cautious about spending this year, meaning fewer subcontractors took holidays during August and more continued working.
Weather has also played a part.
The relatively dry conditions meant fewer rain-related delays on construction sites, allowing more work to continue during the summer.
This has contributed to increased working hours and therefore higher average weekly earnings.
It is another reminder that labour-market statistics need to be understood in context.
A record weekly figure doesn’t necessarily mean that every construction worker is receiving a dramatic increase in their underlying rate. It can also reflect the amount of work being undertaken.
What does this mean for construction employers?
For contractors and construction businesses, rising labour costs create an obvious challenge.
When margins are already under pressure, an increase in labour costs can make estimating and budgeting more difficult.
However, attempting to simply reduce labour costs can create other problems.
If a contractor struggles to secure suitable workers, projects can experience:
- Delays to programme
- Reduced productivity
- Increased overtime
- Additional management costs
- Pressure on existing site teams
- Difficulty meeting client deadlines
- Increased risk of having to pay premium rates at short notice
This is why workforce planning is becoming increasingly important.
Planning ahead can make a difference
The current market makes last-minute recruitment particularly challenging.
If a contractor knows that a project will require electricians, plumbers, carpenters, groundworkers, labourers, supervisors or other skilled personnel, starting the recruitment process early provides considerably more opportunity to identify suitable candidates.
It also gives employers a better understanding of the current market rate before committing to a project.
What does this mean for East Anglia?
For businesses operating across Cambridge, Bury St Edmunds, Suffolk, Norfolk, Essex and the wider East Anglia region, these national trends are particularly relevant.
The construction and facilities management sectors rely heavily on local skilled labour.
For employers, the ability to access reliable workers within a reasonable travelling distance can be just as important as the headline pay rate.
This is where having an understanding of the local recruitment market becomes valuable.
At Marshall Recruitment, we work with construction and facilities management businesses from our offices in Cambridge and Bury St Edmunds, supporting clients across East Anglia.
Our role isn’t simply to fill vacancies.
We help businesses understand the market, identify the skills they need and find people who are appropriate for the role and the project.
Should employers be worried about record labour rates?
Record labour rates are certainly something employers need to factor into their planning.
However, they also provide an important indication of the value currently being placed on skilled construction workers.
For workers with the right qualifications, experience and track record, the market can provide strong opportunities.
For employers, it reinforces the importance of paying competitive rates, retaining good people and planning recruitment before labour requirements become urgent.
The businesses that understand their labour requirements early can put themselves in a much stronger position when competing for skilled workers.
The construction labour market is changing
The latest Hudson Contract figures provide a useful snapshot of where the market currently stands.
Average weekly earnings for self-employed tradespeople reaching £1,110 is a significant milestone, but the reasons behind that figure are perhaps more important than the number itself.
A changing workforce, skills shortages, new requirements around worker eligibility and the continuing demand for experienced tradespeople are all contributing to a more competitive labour market.
For construction businesses, the question is therefore not simply:
“How much does labour cost?”
It is:
“What is the cost of not having the right people when we need them?”
At a time when skilled labour is increasingly valuable, getting recruitment right can have a direct impact on project delivery, productivity and profitability.
Looking for construction or facilities management staff across East Anglia?
Marshall Recruitment supports construction and facilities management businesses across Cambridge, Bury St Edmunds and the wider East Anglia region.
Whether you need skilled tradespeople, site operatives, supervisors, management professionals or facilities management staff, our team can help you navigate the current labour market and find the people your business needs.
Get in touch with Marshall Recruitment to discuss your next recruitment requirement.
Source: Construction Enquirer, “Construction labour rates hit record high”, 25 September 2026, reporting Hudson Contract research. Read the Construction Enquirer article
