Civil and structural engineering consultant Pick Everard asked “a broad church” of consultants and contractors from across the construction industry whether they were giving pay rises above the headline 9% annual rate of inflation. No one was giving above inflation pay increases across the board although 17% said they were ‘roughly the same’ as the inflation rate.
The survey also found that 62% of those polled did not believe this effective pay cut would affect staff turnover, with the suggestion being that job security is being prioritised over income growth.
Pick Everard director Gavin Mason said: “This report provides independent research into supply and demand within the construction industry. Our general view is that the industry appears to be in a position of equilibrium, and we do not find evidence of inflationary pressure from within the sector.
“From a commercial perspective, it is an optimistic start to the year. Inflation is not showing signs of converting into a wage-price spiral, which gives us confidence that interest rate increases have peaked and that there will be scope to start reducing rates by the middle of 2023. We expect the annual rate of inflation to reduce after April 2023, giving positive signs that investment in construction will look more enticing by the summer.”
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