Civil Engineers Feel Impact of Recession

Date:

9 OCTOBER 2009

ICE Annual Slary Survey Released

The average basic salary for civil engineers dropped for the first time in seven years according to the Institution of Civil Engineers annual salary survey, clearly showing the impact of the recession on the sector.

Basic average income in the UK dropped by 0.3 percent to £47,282 in the 2008 tax year, breaking a steady run of increases since the survey’s inception in 2003.  Total salary, which includes secondary income and bonuses, fell by 1.7 percent to £51,899. This was due to significant drops in additional income: secondary income (21.5%), overtime income (7.6%) and bonuses (13.2%).

Interestingly, the recession has not affected all workers equally. The survey showed those on lower salaries have been affected more severely, with the bottom ten percent of earners seeing significant falls in basic income (6%). Conversely, the top ten percent of earners saw moderate increases (1.2 %).

Despite the fall in salaries, members’ satisfaction with both their role and their employer satisfaction remained high across the board and job security was also fairly strong (57% rating their job as secure or very secure).

ICE Director General Tom Foulkes said:
“This year’s survey reflects the impact on the sector of the most challenging economic climate we have experienced for decades. However, despite seeing salaries fall for the first time and some major industry players making redundancies, satisfaction with both jobs and employers is still very high. This surely reflects the passion civil engineers have for the role they play in contributing to the economic wellbeing and functioning of society.”

Other UK findings included:
- Increase in starting salary for 2008 graduates, as compared to 2007 graduates, up 2.6 percent to £23,965
- Redundancies, pay freezes and hiring freezes were the most common methods used by civil engineering employers to mitigate the impact of the recession.
- Employment benefits stayed relatively steady across the board despite the recession, with minimal change year on year.

International findings:
- Basic Hong Kong salary remains almost unchanged at £55,661 but total salary drops 3.4% to £61,769. Both these figures are significantly higher than corresponding UK figures, 18% and 19% respectively. Job security is very high, with 70% rating their role as secure or very secure.
- Average UAE basic income is 32% higher that in the UK, at £62,215. However, job security is much lower, with only 37% considering their roles to be secure or very secure.

Foulkes continued:
“The recession has had an obvious impact on civil engineering and the next twelve months will be significant in determining how the sector bounces back. It is crucial that any future Government ensures investment in infrastructure is continued and prioritised.”

ICE’s latest Salary Survey polled almost 9,000 members across the UK, Hong Kong, and the United Arab Emirates in June 2009.

The full report can be found at

http://www.ice.org.uk/salarysurvey09