Construction industry wage breakout set to continue
The 10-15% wage rises across the property & construction sector over the past year are set to repeat in the next 12 months. According to a report by Hudson Property & Construction, construction recruitment specialists, this is due to a skills shortage and the demands of several billion-dollar infrastructure projects across Australia.
A Hudson spokesman says he “wouldn’t be surprised to see salaries rise again” due to an unrelenting demand for skilled workers.
Property valuers are particularly in demand with development directors currently earning between $250,000 and $350,000 in Victoria.
While wage restraint remains high on the government’s economy watch, evidence indicates the retail sector is also experiencing significant wage growth with 11% of Australian Retailers Association members facing an increased wages bill.
Apart from the commercial, construction and engineering sectors, however, wage growth remains more in line with the current inflation rate of 4.2%. This differs from the 1970s when wage increases in the property and construction sectors leaked significantly into the wider economy.