Data from recruitment firm Hays, analysed by the Building Cost Information Service, show that average wages were up by 7% on the year in Q1 and by 1.6% on the previous quarter (Q4 2023).
Compared with Q4 2023, skilled building trade workers’ wages showed the strongest growth, along with skilled mechanical and electrical workers. Plant operatives’ and unskilled and semi-skilled workers’ wages remained static.
Over the year, the greatest annual growth was also seen among skilled building trade workers, whose pay was on average 12.5% higher than in Q1 2023, though wages were up in all skill categories over the 12-month period.
BCIS solutions architect Paul Burrows, who compiles the the Hays/BCIS Site Wage Cost Indices, said: “Rates for skilled trades and M&E are generally rising, suggesting that these skills are still in short supply, whereas rates for unskilled grades and plant operators remain flat.
“Construction output fell again in Q1 2024, particularly in private commercial and industrial new work, though new orders data, which is a snapshot of potential future work, showed an increase in planned work. I would expect to see more upwards pressure on wages if those orders translate into output.”
Nationally agreed wage awards that took effect in January 2024 included a 7% increase for plumbers and electricians in England and electricians in Scotland, and a 1.5% increase for asphalters. There were also increases for steelworkers and in thermal insulation roles.
Plumbers in Scotland have an agreed 4.0% increase in August 2024, and heating and ventilating workers a 3% increase in October 2024.
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