A new report has found what many home building pros already know: Salaries in the industry have remained stagnant over the past year. For first quarter 2014, construction salaries nationwide averaged $45,417, a $16 decrease from 2013.
According to the analysis by human resources services provider TriNet, installation technicians, plumbers, and engineers are the most in demand for the construction sector, and workers in Florida and Texas received the highest construction-related salaries (see chart above).
The study also found that compared to other industries, women in construction face a very small salary gap compared to their male colleagues. The median base salary for men is $37,440 compared to $34,320 for women, equaling a 92% salary gap, relatively high compared to an 83% average for most industries. The study also found that 13% of the construction workforce is made up of women.
TriNet analyst Kyle Hubbard cites several reasons for the relatively small salary gap. Women often work in office-based positions requiring more management and clerical skills and thus demand a relative wage premium to positions requiring non-skilled physical labor, he points out. Additionally, for those in non-skilled positions, a commoditization effect drives salaries to consistent levels for both men and women, although men tend to fill these positions more frequently, he says. This effect is driven by a surplus of low-skill labor stemming from the housing collapse and recession.
“Combined, these factors help drive the gender wage gap towards equilibrium for the construction industry,” Hubbard says.
The data was based on TriNet’s monthly analysis of small to medium-sized business employment and human capital economic indicators across different industries in the United States.
Learn more about markets featured in this article: Orlando, FL.