Looking at current construction salary trends will show you that wages are on the rise. The rise began early last year and continues to outpace the wage growth in other industries. Experts believe that the increase in construction salaries is due to the skilled labor crisis faced by the industry.
Figures Showing the Rise of Construction Salaries
Recent figures from the US Bureau of Labor Statistics show a rise in construction salaries and construction salaries and construction salaries and those across industries. Year-over-year data shows that private sector wages increased by 2.6 to 2.9 percent.
In particular, looking at construction workers, you can see a dramatic change by comparing the most recent figures to those from 2017. In 2017, construction wages grew about 2.5 percent per year, a bit less than other industries. Now, their growth rate is 3.8 percent.
The changes to construction salary are most noticeable in residential construction. At the beginning of 2020, that industry had a 2.4 percent growth. Now, it has 5 percent annual growth.
The Rise in Salary Is Part of a Years-long Trend
The trend of those in construction careers earning higher salaries is nothing new. This trend began at least a few years ago.
Data From 2020
In 2020, the Contractor Compensation Quarterly found that contractors expected construction staff wages that year would increase by 3.55 percent. This data comes from more than 300 companies. WorldatWork had similar figures. They reported an increase in wages of 3.9 percent for 2019 and projected 3.3 percent for 2020.
It is worth noting that the teams behind those 2020 projections published them before stay-at-home orders began, so they did not account for the impact of the pandemic.
Data From 2018
Going back even further to 2018 still shows a similar trend. That year’s Construction Craft Salary Survey from NCCER included over 130 commercial and industrial construction companies.
The survey looked at a full range of construction positions, with salaries between $47,700 and $92,500. These included construction leadership, such as program managers and project supervisors, and numerous specialties or crafts earning over $60,000 annually.
The survey found the most significant wage increase for HVAC technicians of the various categories of construction workers. This role saw a rise of 20 percent compared to the previous years. Sheet metal workers saw the second-largest increase, at 18 percent.
Trends in the Construction Market Affecting the Changes
Looking at the construction industry as a whole provides the perfect explanation of why construction estimator salaries and salaries for other positions have increased and continue to do so.
The recession saw a drop in construction activity, along with a corresponding reduction in wages. This brought construction wages closer in line with overall salaries. During recovery, residential construction wages rebounded as more construction took place. Today, the wages for residential construction workers are comparatively higher than they have historically been, including before the recession, compared to the construction levels.
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