Construction companies are very optimistic about salaries following the growth in the last few years. Companies and industry experts alike expect to see construction salary increases very soon.
Figures Show Construction Salary Increases Are Already Here
The construction salary increases are already here. This shows in the most recent figures for wages. For example, as of April, construction wages were 6% higher than they had been at the same time in 2021. This indicated the fastest growth in the last four decades. That growth rate record is specifically for non-supervisory positions.
The data relating to salary increase freezes shows a similar trend. In 2021, more than 8% of surveyed construction companies had salary freezes. But for 2022, this figure was less than 1%.
The ability to increase construction salaries is partly due to need. Workers are demanding higher wages, and if you don’t offer competitive compensation, you won’t be able to recruit or retain them.
But, more importantly, the increase in construction wages is possible. Construction companies are seeing a return to projects and profits. With their increasing incomes, they can afford to pay higher wages without sacrificing profits.
There Are Also More Construction Jobs
In addition to the rising construction wages, there are also more jobs in the industry. In February alone, the construction industry gained 60,000 jobs—6,700 of these in the homebuilding sector alone.
The Salary Budget Planning report reveals that 32% of companies have recruitment plans for the next year. Only 7% of companies have plans to reduce recruitment efforts.
Recruitment Is Becoming Competitive
While this is good news for workers, it can be somewhat challenging for companies. Construction companies need to attract talent, especially with the prevailing labor shortage. This means using all the tools and methods at their disposal, including recruiters.
Wells Fargo’s Construction Industry Forecast Also Shows Optimism
Additional optimism comes from the Wells Fargo 2022 Construction Industry Forecast. This year’s National Optimism Quotient was 112. Anything over 100 is considered strongly optimistic, so this is an excellent sign for the construction industry.
The Higher Wages May Increase Construction Projects
While the construction salary increases mean companies must pay employees more, it also has benefits. Specifically, the higher wages and new employees give construction companies the opportunity to grow. They can invest in more projects, from building more homes to more commercial properties.
Conclusion
Construction salaries are increasing, giving companies another point to highlight when recruiting talent. There are also more jobs in the construction industry, allowing companies to expand and take on more projects.
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