Average weekly earnings in the construction industry

The Office for National Statistics (ONS) publishes monthly updates on average weekly earnings across the whole economy and by industry and sector in Great Britain. This commentary relates to ONS’s EARN02 and EARN03 datasets, which cover non-seasonally adjusted earnings, excluding bonuses and including arrears.

Note: ONS’s April 2025 update to earnings data included exceptional revisions dating back to October 2020, which have been reflected in our service and in the data below.

Construction earnings growth trails wider economy

Construction wages, as measured by index K5AH in the ONS’s Average Weekly Earnings dataset⁽¹⁾, increased by 2.0% in the year to October 2025. This was a decrease on the 2.9% rise seen in the 12 months to September 2025. On the month, there was a 0.1% increase in the construction industry’s average weekly earnings.

Across the whole economy, the average increase in earnings in the year to October 2025 was 2.6%, down from 5.1% in September, according to index KA5H⁽²⁾.

Dr David Crosthwaite, chief economist at BCIS, said: ‘Muted demand growth seems largely to blame for the slow rise in construction wages. Earnings are well below the level of inflation and point to a continued need for new work growth.

‘After a fairly tame Autumn Budget, there’s a lot riding on regulatory reforms like the new Planning and Infrastructure Bill to stimulate demand in the new year.’

Annual growth in earnings in construction was lower than the whole economy average for the sixth consecutive month in October 2025.

^{Source: ONS – Construction (K5AH) and Whole economy (KA5H), non-seasonally adjusted average weekly earnings, excluding bonuses, including arrears}

Comparing pay at a sector level (with index K56S), construction workers saw the fifth highest annual increase in average earnings across all sectors.

The greatest annual wage growth was recorded in the wholesaling, retailing, hotels and restaurants sector with a 5.4% rise. Elsewhere, the public sector saw a 0.5% decline in annual wage growth – its first decrease since August 2013.

^{Source: ONS – EARN02: Non-seasonally adjusted Average Weekly Earnings, excluding bonuses, including arrears, at sector level}

The ONS data show that the construction sector has experienced the most extreme fluctuations in earnings movement in recent years, from a 9.5% annual decrease in May 2020 to a 13.4% increase year-on-year in May 2021.

^{Source: ONS – EARN02: Non-seasonally adjusted Average Weekly Earnings, excluding bonuses, including arrears, at sector level}

BCIS produces five-year forecasts of the Average Weekly Earnings construction (K5AH) and whole economy (KA5H) time series for subscribers of BCIS OpX.

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^{(1) Office for National Statistics – EARN03: Average weekly earnings by industry  - here}

^{(2) Office for National Statistics – EARN02: Average weekly earnings by industry  - here}