Construction Wage Increases Expected to Rise
Construction executive compensation will rise an average of 5.5 percent in 2007, according to the latest forecast from PAS, Inc., published in the November 2006 edition of its Contractor Compensation Quarterly. This is higher than the 5.1 percent average increase estimated in 2006, and the 4.4 percent average increase in 2005.
PAS further projects that exempt staff in the industry will receive an overall average increase of 5.0 percent in 2007, up from 4.5 percent in 2006 and 3.85 percent in 2005, and that craft rates will increase an average of 5.0 percent in 2007, up from 4.6 in 2006 and 4.0 in 2005.
“With the slump in the housing market, expect wage increases to vary widely by type of construction and region of the country,” says PAS. Two other factors that will affect construction wages in 2007, according to PAS, are the Gulf Coast reconstruction effort – which will likely impact industrial construction more than commercial – and demographic changes – mainly related to the disproportionate number of workers retiring as compared to the number of new people entering the workforce.
For more information on PAS survey reports, go to www.pas1.com or call (734) 429-1199.
return to top ]