As the construction industry sees a surge in salary, workers are witnessing incredible opportunities open before them.
McKinsey & Company reports, “The US Bipartisan Infrastructure Law projects $550 billion of new infrastructure investment over the next decade, which our modeling suggests could create 3.2 million new jobs across the nonresidential construction value chain. That’s approximately a 30 percent increase in the overall US nonresidential construction workforce, which would mean 300,000 to 600,000 new workers entering the sector—every year.”
And they’re being well-compensated for their work, too. Experienced construction workers are seeing wage growth upwards of 6%, and new hires received an average of 4.7% in wage increases.
Jobs are booming in the US construction industry: they are plenty of opportunities to be filled. However, these jobs remain largely unfilled. For example, by December 2021, there were nearly 11 million unfilled jobs in the construction industry.
Why the Construction Industry Sees Surge in Salary
Many seemingly isolated factors affecting the construction industry created a perfect storm with a low-pressure system that pulled the energy of a dynamic field. Attracting and retaining skilled workers in the construction industry has been a challenge. Several factors are causing salaries in the construction industry to surge, including:
- A renaissance in renovations, remodeling and new construction. Consumers are eager to launch construction projects they temporarily had put on hold; construction firms needs workers who can start immediately.
- The need to attract workers to fill enormous gaps and meet demand. It’s projected that by 2026, the construction industry will need approximately 750,000 more workers than are employed now.
- Public education’s focus on obtaining college degrees rather than construction trade jobs. With most public high schools being scored on the percentage of students getting accepted into college, it’s no wonder that Career and Technical Education (CTE) had to take a seat in the back corner of the room.
- Closing the gap between employment and retirement for construction workers. The average construction worker is almost 43 years old. As five construction workers leave the industry, only one joins the industry, leaving four open roles.
- “Buy American/Hire American” left many ready and willing construction workers on the sidelines. Either their visas were denied, or their names weren’t drawn in the lottery.
As a way to overcome these challenges, construction companies are attracting workers with big salaries and benefits.
To attract and retain the top talent needed in the construction trades, construction companies will need to work closely with a recruiter who can source the highly skilled workers needed for the growth we’re witnessing.
About Raymond Search Group
At Raymond Search Group, we understand the complexities of hiring elite talent within the architecture, engineering, construction and real estate sectors.
We utilize a consultative approach to understand our partners’ business goals, and we’re dedicated to helping our clients build first-class, long-term teams while eliminating the hassles and extended hiring times associated with executive recruiting. We’re equally committed to helping skilled candidates advance their careers and forge lasting relationships.
If you’re ready to optimize your recruiting strategy, connect with Raymond Search Group today.