"Wages in construction are rising rapidly, pointing to a potential overheating in the sector, the Economic and Social Research Institute (ESRI) has warned."
"Construction wages are increasing to a much greater extent than in the economy as a whole, as the sector deals with the competing demands of building houses, retrofitting, and infrastructure projects."
Construction wages are rising rapidly and suggest a potential overheating in the sector. Wage growth in construction is significantly outpacing that of the wider economy. The sector faces simultaneous demand pressures from housebuilding, energy-efficiency retrofitting, and major infrastructure projects. Rising labor costs are increasing overall delivery costs across residential and public investment programs. Higher construction costs will make housing targets harder to meet and threaten timely delivery of commitments under the National Development Plan. Managing workforce capacity, supply-chain pressures, and cost escalation will be important to avoid bottlenecks and preserve planned investment outcomes.
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