Press Release

Study: Construction Salary Growth Decreased in 2025

LinkedIn Share Button Twitter Share Button Other Share Button Other Share Button

CHICAGO (Nov. 4, 2025)—Leading advisory, tax and assurance firm Baker Tilly releases the results of the 2025 Construction Industry Salary Report. The annual report, based on a survey of construction companies of all sizes and sectors, highlights compensation trends and provides contractors with a useful tool to measure their compensation strategies against peers.

This year’s report, the first since the combination of Moss Adams and Baker Tilly, shows wage growth rates slowed across participating regions, with each reporting below-average increases. Compensation based on cost-of-living adjustments also declined 7% compared to last year, however, projections for stronger wage growth in 2026 and a higher rate of companies offering merit pay and cash incentives suggest expectations for an increase in volume and demand for labor.

“Many companies are continuing to take a more cautious approach to compensation amid market uncertainty,” said Brian Kassalen, principal and construction industry leader at Baker Tilly. “Aggressive compensation strategies have slowed down in the past year, signaling that contractors are not looking to attract talent as much as previous years suggested.”

The salary report explores various aspects of compensation and benefits in the construction industry. The data detailed in the report includes salary and benefits for executives and industry-specific personnel, trends in salary and bonus structures, wage growth rates across verticals and geographic regions and strategies used to attract and retain talent. This year’s report brings new data points including expanded insights into bonus pool structures, more information around insurance and 401(K) matching, and broadened information around incentives.

“We are excited for the potential to expand the report in the coming years with the combination of Moss Adams and Baker Tilly” said Aaron Faulk, principal at Baker Tilly. “Our broader footprint will allow us to deliver deeper insights and a more comprehensive view of compensation trends within the construction industry and throughout the United States.”

Other key findings from the 2025 Construction Industry Salary Report include:

  • 79% of companies surveyed offer paid holidays to all employees — a 7% decrease from 2024 — while 8% limit the benefit to management-level employees.
  • 58% of companies use cost-of-living adjustment to attract and retain talent, down 3% from last year.
  • Participating companies project between 3% to 4% wage growth in 2026.
  • 65% of companies reported no change to their salary strategies in the past year.
  • The average salary for construction managers is $151,202.
  • The average salary for construction laborers is $63,318, rising to $74,283 for respondents in California’s Greater Bay Area.

View the full, complimentary report.

About Moss Adams
At Moss Adams, we believe in the power of possible. A business and personal advisory firm with more than 110 years of experience and 4,800 professionals across 30+ markets, we work with clients to meet the rising challenges and opportunities of tomorrow. Discover how we can help you go where you want to be next. Upward.

Baker Tilly US, LLP, Baker Tilly Advisory Group, LP and Moss Adams LLP and their affiliated entities operate under an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly Advisory Group, LP and its subsidiaries, and Baker Tilly US, LLP and its affiliated entities, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP and Moss Adams LLP are licensed CPA firms that provide assurance services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. ISO certification services offered through Moss Adams Certifications LLC. Investment advisory offered through either Moss Adams Wealth Advisors LLC or Baker Tilly Wealth Management, LLC.