Data compiled by recruitment agency Randstad Construction, Property & Engineering from almost 6,800 permanent placed construction jobs shows that salaries across the sector rose by 9% in the 12 months to 31st May 2019, 聽despite a drop in the number of vacancies being advertised.聽 Average pay rose from 拢42,300 a year ago to 拢45,900 today.
Pay in site management has risen 3%, with average asking salaries rising from 拢47,100 a year to 拢48,500 in the 12 months to 31st May.聽 Randstad鈥檚 data shows assistant site managers earning 拢37,600 per year with the highest-flying candidates being offered 拢48,500 a year in London.聽
Site managers have seen their pay rise 3% to an average of 拢50,500, up from 拢48,800 the previous year.聽 Average salaries are higher in London, currently sitting at 拢53,400.聽 One senior site manager, a role now typically being paid 拢62,900 a year, is now earning 拢78,000 a year on a job in Welwyn Garden City.
Maintenance engineers have seen their salaries rise by 5%, from 拢31,800 to 拢33,500.聽 According to Randstad, some maintenance engineers in London have recently secured starting salaries of 拢47,500 over the course of the last 12 months.聽 A similar situation is developing in project management where average pay has risen 8%, from 拢59,500 to 拢64,200.聽 Pay for senior project managers has risen 7% from 拢75,700 to 拢80,800.
Site engineers have seen pay rise even further.聽 Average asking salaries have risen 19%, from 拢37,100 to 拢44,300 a year 鈥� with the highest paid site engineers in the capital getting up to 拢68,700.
Owen Goodhead, managing director of Randstad Construction, Property & Engineering, said: 鈥淭he best senior site managers are earning close to an MP鈥檚 salary.聽 While that鈥檚 good news for individuals, it鈥檚 potentially not such great news for the economy.聽 Our research shows that construction workers from overseas are being put off coming to the UK and those that are here are thinking about moving elsewhere; we know that over a third of European construction workers who are already here have considered leaving the UK due to Brexit.聽 This should be of huge concern to industry leaders and the government, especially in the capital where nearly one in three people working in London鈥檚 construction sector were born in the EU.聽 The shrinking pool of EU talent is already driving up wages 鈥� that鈥檚 the power of supply and demand.聽 This Builder Brexodus is the referendum鈥檚 inheritance.鈥�
Mr Goodhead added: 鈥淭he UK鈥檚 critical mass of talented people from around the globe is a major competitive advantage for the country.聽 Employers across the country rely on people born outside of the UK to fill skills shortages and help grow their businesses.聽 The most important thing to the construction industry is being able to hire, retain and train the talented people we need.聽 That鈥檚 getting harder as the UK鈥檚 employment landscape changes in the wake of Brexit.聽 It鈥檚 very serious given we have seen a contraction in construction business activity in May as economic and political concerns slowed commercial building activity.聽 On the back of political and economic uncertainty, output is declining at its swiftest rate since September 2017.聽 Civil engineering activity has been falling month on month for most of 2019.聽 If the UK鈥檚 pool of European talent wasn鈥檛 shrinking so fast, the drop in demand would be nudging asking salaries down.聽 Brexit is widening the construction skills gap.
鈥淕iven house building and infrastructure building are bright spots in the sector and are continuing to grow, the government needs to ask: who鈥檚 going to put up these new homes?聽 Who is going to build HS2?鈥�
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