More than one in four Australian construction and engineering professionals went without a pay rise in the past year, despite ongoing labour shortages and strong demand for skilled workers, new research has revealed.
According to the latest Hays Salary Guide FY26/27, 28 per cent of construction and engineering professionals received no salary increase over the past 12 months, raising fresh concerns around retention, workforce planning and long-term skills shortages.
The findings arrive at a time when construction businesses continue to battle chronic workforce shortages, rising project costs and mounting delivery pressures.
Wage growth struggles to keep pace
While some workers did receive salary increases, growth remained modest for many across the sector.
The research found 12 per cent received an increase of up to 2.4 per cent, while 24 per cent reported rises between 2.5 and 5 per cent. Just 10 per cent saw salaries increase by between 6 and 10 per cent.
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Engineering employers expect stronger wage growth than most industries over the next 12 months, forecasting average pay increases of 4.5 per cent — above the national average of 3.8 per cent. Construction employers were slightly more cautious, anticipating average increases of 3.9 per cent.
Despite relatively stable employment conditions, many workers remain unconvinced their pay reflects current economic realities.
Across all industries, around half of professionals reported feeling underpaid, even after receiving salary increases.
Workforce confidence masks growing dissatisfaction
The research paints a picture of a workforce staying put — but not necessarily by choice.
While two-thirds of Australian workers reported confidence in their job security, only just over half said they were satisfied in their current role.
Hays APAC CEO Matthew Dickason warned employers against mistaking stable turnover for contentment.
“Employers shouldn’t confuse low mobility with low dissatisfaction. Only one in five changed jobs last year, yet one in three say there’s no clear promotion structure, and pay growth is only just tracking inflation,” Mr Dickason said.
“The conditions for a retention problem are building underneath stable turnover numbers.”
Across construction and engineering, one in five professionals changed employers in the past year, while just 10 per cent received a promotion.
More than one in five workers are now considering further education or certification, highlighting a growing focus on long-term career resilience.
Skills shortages remain acute
Engineering continues to face some of the highest workforce pressures in the country, with 93 per cent of organisations reporting skills shortages — the highest of any sector.
Construction also remains under pressure, with 83 per cent of employers reporting workforce shortages.
Mr Dickason said career progression may increasingly become a deciding factor for retaining skilled workers.
“Where pay can’t do all the work, progression has to,” he said.
“Employers should start by making progression tangible. Clarify what advancement looks like and equip managers to have regular career conversations.”
AI fears remain low
Unlike other industries grappling with automation concerns, workers in construction and engineering appear relatively unfased by artificial intelligence.
Just 18 per cent of professionals expressed concern about AI threatening employment opportunities — well below the national average of 30 per cent — while more than half said they were not concerned at all.
Cautious optimism ahead
Despite frustrations around pay and progression, workers remain cautiously optimistic about the future.
The research found optimism about economic conditions and employment prospects has improved year-on-year, though uncertainty remains.
For construction and engineering businesses already struggling to attract and retain skilled staff, the message may be difficult to ignore: workers might be staying put for now, but patience — much like wages — is only stretching so far.
