Construction Pay Up for Fifth Consecutive Quarter, BCIS Finds

CONSTRUCTION site wages in the UK were up by an average of 2.4% in Q2 2024 compared with the previous quarter, and up by 4.6% on an annual basis, the latest data from the Hays/BCIS Site Wage Cost Indices shows.

The greatest annual growth in earnings was seen in skilled mechanical and electrical trade placements, with pay 14.8% higher than in Q2 2023.

Hays reported fewer construction job placements in Q2 2024, continuing a decrease which has been seen since Q2 2021.

Construction Pay Up

Paul Burrows

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 Q2 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 Q1 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.”

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