Study: Construction Salary Growth Decreased in 2025

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.