Skillit, the data-driven recruiting platform for skilled, full-time construction labor, today announced the release of its Q1 2023 Craft Intelligence Report. The company’s latest report analyzed disparities in the wages of skilled trade workers across the southern U.S., where large ENR builders are particularly active. The data show that in Q1 2023, desired pay grew by 8 percent to a mean of $31.88 / hour across all trades, handily outpacing the April 12 TTM inflation print of 5 percent. Actual pay across all trades settled at a mean of $25.44 / hour for the quarter. The Skillit Craft Intelligence Report is produced on a quarterly basis, leveraging data from its customers, skilled worker network, recruitment technology database and construction industry trends. Skillit’s proprietary worker data includes hundreds of variables from trades, skills and experience to actual vs. desired pay and travel preferences.
Skillit’s analysis uncovered that of the trades where at least 80 percent of contractors reported having trouble hiring, there was also a noticeable gap in pay for those workers. For example, 87 percent of contractors reported issues hiring Concrete Workers, and according to Skillit’s data, there is a 10 percent gap between desired and current hourly pay for the same trade. Of the trades analyzed, Electricians (14 percent gap), Truck Drivers (12 percent gap) and HEOs Loading / Excavating (12 percent) were the trades with the most considerable discrepancies between desired and current hourly pay. As a complement to its proprietary data, Skillit utilized AGC’s 2022 National Workforce Survey as well as the BLS’s Occupational Employment and Wage Statistics.
Skillit also analyzed data for the southern U.S., including Arizona, Florida, North Carolina, Tennessee and Texas, where large ENR builders and customers of Skillit are particularly active. Skillit designates what it calls Worker Commutable Metro Areas (WCMs) by combining statistical areas within which workers are likely to commute based on local knowledge, geography and stated worker preferences. Of the WCMs analyzed, the data show that Florida has the most significant gap between desired and current hourly pay. Jacksonville, FL was the WCM with the largest gap of 19 percent, followed by Phoenix, AZ at 17 percent, Gainesville, FL at 15 percent and Orlando, FL at 15 percent. Wage gaps in the Southern U.S. are particularly relevant to the boom in green energy construction, in which nearly all of Skillit’s customers are engaged and are having difficulty identifying the workers they need to deliver solar and other projects.
“Craft workers are essential to the success of the built world, our economy and the future of our planet. As contractors face hiring challenges and opportunities stemming from legislative catalysts like the CHIPS Act and the Inflation Reduction Act, it’s necessary that they turn to new technologies and data to make informed recruiting and hiring decisions for the long run,” said Fraser Patterson, CEO and Founder, Skillit. “The data from Skillit’s latest report highlights a meaningful disconnect between workers’ expectations and their current hourly pay, which can significantly impact workers’ interest in, and commitment to, an organization. It will also seriously hinder the ability to deliver projects critical to the climate transition and to our national security, like the construction of semiconductor fabs. However, pay is only one piece of the puzzle. Thousands of conversations with craft workers and employers tell us that other factors including culture, development opportunities and non-cash benefits also contribute meaningfully to career decisions in construction. Just as they do in the so-called white-collar world.”
To access the Skillit Craft Intelligence Report Q1 2023, visit: https://skillit.com/skillit-craft-intelligence-report-q1-2023/
About Skillit
Skillit is the first recruiting platform purpose-built for construction that uses data to solve the industry’s biggest problem – the shortage of skilled labor. The company is on a mission to solve the skilled labor crisis by delivering technology and data solutions that meet the needs of both skilled workers and construction companies alike. Founded by an entrepreneur with personal experience as a General Contractor and Carpenter, Skillit connects the supply of skilled workers with contractor demand in the $1.7T annual construction industry. An end-to-end purpose-platform providing visibility into the full employee lifecycle, Skillit improves recruitment (supply and hiring process) and retention outcomes for the world’s leading ENR contractors. Founded in 2021 and backed by venture capitalists, including Building Ventures, MetaProp, and HOLT Ventures, Skillit is delivering meaningful improvements to key metrics for hiring managers, including percent of offers accepted and time to hire. To learn more, please visit: https://www.skillit.com/.
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