Construction wages and benefits have taken a sharp downturn this year as companies have seen job opportunities dry up nationwide. After nearly a decade of steady increases, compensation has flattened on average as many employers have frozen or decreased wages. Analysts hold a mixed view on the trend, noting the situation isn’t alarming today, but could worsen in the future. While the recession has eased cost-of-living pressures on wages, the health-care debate is raising concerns that employers may face considerable financial hurdles further out.
Both open-shop and union contractors are seeing similar statistics. This year, wage increases are expected to average 2% among all open-shop contractors, according to the 2009 Merit Shop Wage and Benefit Survey compiled by Personnel Administration Services, a Saline, Mich.-based compensation research firm. Roughly one-third of respondents did not give an increase. Among those companies that raised wages, increases averaged 2.9%, with East Coast employers slightly outpacing those on the West Coast.