The UK construction industry experienced a notable wage increase in the second quarter of 2024, with average wages rising by 2.4% compared to the previous quarter. This data, compiled by the Building Cost Information Service (BCIS) and recruitment company Hays, highlights both the evolving dynamics of the construction labor market and the persistent demand for skilled labor.
According to the Hays/BCIS Cost Information Service, construction wages overall grew by 4.6% on an annual basis. However, this growth was not evenly distributed across the workforce. Skilled workers, particularly those in mechanical and electrical roles, saw a significant surge in pay. In fact, year-on-year, skilled mechanical and electrical placements experienced an impressive 14.8% increase in wages from Q2 2023 to Q2 2024. This represents the highest annual growth in earnings within the industry for this period.
This trend underscores the increasing value placed on specialised skills in the construction sector. As demand for highly skilled labor outstrips supply, employers are offering more competitive wages to attract and retain talent. However, it’s important to note that despite these wage increases, there has been a decline in job placements. The number of placements in Q2 2024 continued to drop, a trend that has been ongoing since Q2 2021. This suggests that while individual workers may be earning more, there are fewer opportunities available overall.
As the construction industry navigates these changes, it becomes more critical than ever for builders, project managers, and architects to have accurate and reliable cost estimates to manage their projects effectively. That’s where Synergy Estimates comes in.
At Synergy Estimates, we provide a construction and building estimating service that is both easy to use and highly convenient. We work closely with builders, self-builders, project managers, and architects to produce precise build estimates tailored to the unique needs of each project. Our clients consistently achieve success in moving their build projects to completion, thanks to the accuracy and reliability of our estimates.