Self-Employment Rockets In UK Construction

The ONS has today published employment data pertaining to the construction and wider trade industries. 

Dominick Sandford, Managing Director at ElectricalDirect, comments on the data, noting:

• Self-employment in UK construction rose by a massive 14% in recent months - the biggest jump in 15 years
• Construction wages are up 6% YOY, but this is still below the inflation rate
• Wages in the electrical, gas and water supply industry are up 16% YOY and just experienced the biggest increase across all sectors

Dominick Sandford, Managing Director at ElectricalDirect, said: “The rising inflation rate has been a huge issue for workers and businesses in the UK over the last couple of years, and despite it falling slightly in recent months, wages in the construction industry are still lagging behind. 

“The latest ONS data shows that the average pay in construction fell by £32 between March and May, from £768 a week to £736. Although this is still up 6% year-on-year, inflation reached 8.7% in April, so workers are effectively still worse off. “One consequence of this appears to be a massive increase in the number of self-employed individuals. Between December and March, self-employment rose by 14% to 279,000, which is the biggest jump in 15 years, since the financial crisis of 2008. 

“The construction workforce in general has also grown in the last few months, and now stands at 2.294 million, representing a 2% rise from the end of last year. 

“The electrical, gas and water supply industry is experiencing rather different trends, as while the number of workers has fallen a little (down 2% compared to December), wages are soaring. 

“Between March and May, average weekly pay leapt by £126 up to £977, which is comfortably the biggest increase seen across any UK industry, and the highest it’s ever been for workers in this sector. At £977, income is 16% higher than at this time in 2022, meaning they have risen above the rate of inflation. 

“With the inflation rate finally starting to drop, hopefully it won’t be long before wages in other trade industries overtake it too, and the impact of the Cost of Living crisis starts to lessen as the year goes on.”

For more information on ElectricalDirect, visit: https://www.electricaldirect.co.uk/ 

References:

1 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/averageweeklyearningsbyindustryearn03  2 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/workforcejobsbyregionandindustryjobs05 
3 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/selfemploymentjobsbyindustryjobs04 
4 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/workforcejobsbyregionandindustryjobs05 

Source : ElectricalDirect 

Image : Bogdanhoda / istockphoto.com (622800884)

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