Americas Fit-Out Cost Guide 2022

C U S H M A N & WA K E F I E L D

WAGES INCREASE TO KEEP UP WITH LABOR DEMAND Construction Employment and Wages U.S.: Construction Employment andWages

Canada: Construction Employment andWages

20%

20%

15%

15%

10%

10%

5%

5%

0%

0%

-5%

-5%

-10%

-10%

-15% Year-over-Year Change

-15% Year-over-Year Change

Construction Employment

Construction Wages

Construction Employment

Construction Wages

Source: U.S. Bureau of Labor Statistics (BLS); Statistics Canada:; Moody’s Analytics

LABOR CHALLENGES Across many countries in the Americas, construction employment has been growing at a faster rate than total employment. Since 2012, the growth rate in the U.S. has been four-fold for construction labor, while in Costa Rica and Mexico construction employment has grown faster than total employment by 55 and 35 basis points, respectively. 7 In Canada, construction employment dropped by 6.4% in the wake of the pandemic. However, by the end of 2021, two-thirds of those jobs had been recovered.

KEY TAKEAWAY There is a cost for this growth and the related shortages. In the U.S., for example, construction wages increased 3.5% in 2021. This outpaces the 10-year average prior to the pandemic (2010-2019) pandemic complications, early retirements and skill gaps—will continue to create challenges for occupiers looking to build out spaces in 2022. by 150 bps: 2.0%. 8 Tight labor markets—due to

CONSTRUCTION EMPLOYMENT OUTPERFORMS IN MOST COUNTRIES Annualized Employment Growth Rate: Total and Construction Sector Not available for Chile and Panama

3%

2.5%

1.9%

2%

1.5%

1.3%

1.1%

0.9%

0.8%

1%

0.6%

0.3%

0%

-0.3%

-0.4%

-0.6%

-1%

-0.8%

-2%

-2.3%

-3% Annualized Growth Rate (2012-2021)

Argentina Canada Colombia Costa Rica

Mexico Peru United States

Construction Employment

Total Employment

Source: Moody’s Analytics, Cushman & Wakefield Research

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