Average salary increases across Australia and New Zealand’s construction workforce sit at around 3.8 per cent for FY26/27, but the headline figure masks a more uneven picture beneath the surface, according to the latest Hays Salary Guide.
The report, based on an online survey of more than 6,500 professionals conducted between 6 February and 1 March 2026, found that while pay growth remains steady overall, 42 per cent of respondents reported minimal or no increase at all.
That gap is contributing to growing dissatisfaction in a market where employees are increasingly aware of their own value, particularly in critical project and site-based roles where demand remains strong.
“Demand remains high, but talent supply is still constrained,” said Austin Blackburne, Regional Director, Technical and Technology, ANZ.
“Construction activity remains strong, but access to skilled workers continues to be one of the sector’s biggest challenges.”
“Even with stable salary growth, organisations are under pressure to balance cost management with the need to attract and retain critical talent.”
The survey also points to a widening gap between technology adoption and organisational support.
Around 60 per cent of professionals report using AI tools in their day-to-day work, yet only 22 per cent say they receive formal training or support to use them effectively.
The disconnect leaves many workers experimenting with new tools largely on their own, a trend the report suggests could affect both productivity and confidence as AI becomes more embedded in everyday tasks.
Career mobility remains a defining feature of the sector.
Some 36 per cent of professionals are actively seeking new roles, while a further 34 per cent say they are open to opportunities if the right one came along.
With over 70 per cent of professionals having spent less than four years in their current role, movement continues to be structural rather than exceptional, particularly in project-driven environments where roles evolve quickly.
Pay and progression have emerged as near equal drivers of that movement.
While 31 per cent of respondents still cite salary as their primary reason for changing jobs, 29 per cent now point to a lack of career progression, reflecting rising expectations for clear, structured pathways.
“In construction, retaining talent is no longer just about pay,” said Blackburne.
“Professionals are looking for longer-term pathways and certainty around their progression.”
Flexible working has also shifted from a point of distinction to a baseline expectation.
While 70 per cent of employees say flexibility is critical when weighing up a role, 66 per cent of employers now offer some form of it as standard.
That shift means flexibility alone is no longer enough to set an employer apart, pushing the focus toward progression, skills development and consistency in how flexible arrangements are applied across site-based and office-based roles.
Skills shortages remain a persistent challenge, with 82 per cent of organisations reporting capability gaps, even as 57 per cent of employees believe their own skills are up to date, a disconnect between employer expectations and employee perception.
Demand remains strongest for Project Managers, Site Managers and Supervisors, Estimators, Contract Administrators and Civil Engineers.
The Hays Salary Guide recommends employers benchmark salaries regularly, target pay increases where they will have the greatest retention impact, and invest in visible career pathways and skills development.
Professionals, meanwhile, are encouraged to understand their market value and prioritise roles that offer clear routes for long-term growth.