The cost of hiring self-employed electricians during the seasonally slow start to the new year increased by 2% in 2022, according to the construction industry’s biggest payroll provider. Electrical contractors earned an average of £985 per week in January, compared to £965 during the same period in 2021. Month-on-month earnings usually decline in January as sites begin to reopen after the festive break. This year, they decreased by 14.4% against December 2021.
The analysis was carried out by Hudson Contract, UK provider of tax status and employment contract services to the construction industry with annual revenues of £1.6 billion and a client base of more than 2,500 construction SMEs.
Ian Anfield, Managing Director, says: “A year-on-year 2% rise in earnings for electrical contractors is consistent with general high demand and high rates for self-employed tradespeople. Our clients are saying they are still busy but more than one or two are also telling us it’s not as difficult to find skilled labour and that the 2021 flood of tender documents coming through the door has settled to a steady stream this year.”
Commenting on conditions in the wider construction industry, Ian adds: “In the run-up to Christmas, it felt like housebuilders had their foot flat to the floor. They have not exactly put the brakes on since, but they have definitely eased off on the accelerator. It seems housebuilders are concerned about the impact of inflation and the ability of potential buyers to borrow the money to purchase the homes they are going to build.”
The overall findings are in line with the latest Bank of England monetary policy report which found that output growth had weakened due to shortages in material and labour while increased costs had weighed on demand in a few cases. The Construction Products Association noted that annual inflation in UK construction materials reached 21.5% in December.