Construction wages rise on worker shortage
More than half the contractors in the B.C. Interior say they’re short of workers — especially electricians, plumbers, and labourers — a new survey of business owners says.
As a result, wages for B.C. construction jobs are predicted to rise 3.5% in 2021 and a further 4.2% in 2022.
But only one third of construction firms in the Interior expect to get more work in 2021 than they did in 2020, according to a poll conducted by the Independent Contractors and Business Association.
“It seems counter-intuitive to expect wages to jump 7.7% over the next two years at the same time employers are planning to see less construction work, but that is how tight the B.C. labour market has become,” ICBA president Chris Gardner said in a Wednesday news release.
Construction industries employ 240,000 people in B.C., representing nine per cent of the provincial gross domestic product.
The ICBC’s annual survey is based on responses provided by the owners and managers of 1,000 construction firms across B.C.
The average hourly wage across all trades is $30, while top-earning refrigeration and HVAC tradespeople earn just over $50 an hour.
In the Interior, even as 54% of contractors say they have trouble finding enough workers, only 37% of them said they expect to bid on more jobs next year than they did in 2020.
During the City of Kelowna’s 2021 budget deliberations earlier this month, council heard from senior staff that bids for industrial and commercial projects were coming in significantly below estimates as contractors were eager for work.
Tenders for some contracts were coming in as much as 30% below estimates, city councillors heard. That was one reason why some councillors wanted to proceed in 2021 with a $4.7 million renovation of City Hall.
“This is the right time to get the very best bang for the taxpayer dollar,” Coun. Gail Given said at the Dec. 10 budget meeting.