Construction Workers’ Daily Pay Reaches 282,737 Won as Wage Growth Hits 10-Year Low

Average daily pay for South Korean construction workers has reached 282,737 won, but the increase is showing the strain of a prolonged industry downturn. The wage survey, conducted by the Korea Construction Association in May, found that pay across 132 occupations would rise 0.98% from the first half of the year and 1.4% from the same period a year earlier.

The year-on-year increase marks the lowest growth rate in a decade. Construction wages rose 6.71% in 2023, 3.30% in 2024 and 1.66% last year before slowing again this year.

The association linked the slowdown to weaker construction activity and falling employment. Completed construction output declined 3.2% in 2024, with the decrease widening to 15.7% last year. Output fell 3.98% in the first quarter of this year and increased only 0.60% in the second quarter.

Employment has also weakened. The construction sector employed 1.92 million people in May, down 2.2% from a year earlier. With fewer projects available, demand for workers at construction sites has fallen, limiting pressure for higher pay.

The wage figures serve as a key measure when calculating construction project costs. The latest survey can be applied to construction cost calculations from Sept. 1. The Korea Construction Association said the weak construction market and decline in employment appeared to have contributed to the slower wage growth.

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The weak construction market and decline in employment appear to have affected the slowdown in wage growth.