Sneak Peek: Construction wages rising again

Construction hourly wages are up at a 4.6% annual pace in the last six months and will probably accelerate a little more in the next few months. Also worth noting: annual wage gains peaked at 4.3% at the peak of the last building cycle in early 2000.

Benefits costs are actually rising more slowly than a few ago. The recent pickup in wages is largely due to shortages of skilled workers with a contribution from inflation catch up wage demands.  Consumer Price Index inflation is 1.25% higher in the last two years now than it was in 2000.

Year-to-year % change in average hourly earnings

Year Quarter All NR 2001 Construction General Contractors    1 4.1 3.1  2 4 1.1  3 3.7 0.6    4 3.3 1.2 2002  1 2.9 2.8  2 2.6 4.1  3 2.9 4.5  4 3.1 4.1 2003  1 3.2 3.7  2 3 4.7  3 2.6 3.3  4 2 2.8 2004  1 1.8 2.3  2 2 0.6  3 2.2 1.5  4 2.5 2.4 2005  1 2.6 2.1  2 2.6 2.5  3 2.7 1.8  4 3 0.7 2006  1 3.5 1.7  2 3.9 2.5  3 4 3.8  4 4.1 5 2007  1 4 5.9