Wage rises continue for skilled UK construction workers, but plant operators lose out

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That’s according to new figures compiled by the Building Cost Information Service (BCIS) and recruitment company Hays.

The Hays/BCIS Cost Information Service recorded 4.6% overall construction wage growth on an annual basis.

But within that figure, skilled workers are commanding greater pay increases than their unskilled or semi-skilled counterparts.

Skilled mechanical and electrical placements saw a 14.8% year-on-year bump in pay in Q2 2024, as compared to Q2 2023, which was the highest annual growth in earnings.

However, there were fewer job placements overall in Q2 2024, continuing a decrease that has continued since Q2 2021.

BCIS solutions architect Paul Burrows, who compiles the indices for BCIS and Hays, said, “As the numbers of placements continue to fall across the board, whilst pay rises in line with wage agreements, it looks as though the market is suffering from a shortage of skilled workers. This is likely to be exacerbated as workers leave the industry, especially with the retirement of older workers who aren’t being replaced.

“Construction output fell again in 2Q 2024, which has been a mitigating factor against the effects of a shrinking workforce. New orders data though, which is a snapshot of potential future work, showed another significant increase in the second quarter, up by 16.5% on 1Q 2024, boosted mainly by private commercial and infrastructure new work.

“If those orders translate into output, that may mark the point where skill shortages really start to constrain new activity, and I would expect to see upwards pressure on wages. It will be interesting to see if numbers of placements start to rise towards the year-end and, if they do, whether increased demand pushes up wages.”