Press Releases

Short-term contractions in British Columbia’s construction sector are short lived, with the residential sector poised to drive growth to 2032

April 28, 2023

British Columbia’s construction sector enjoyed another strong year of growth in 2022, with investment levels in both the residential and non-residential sectors rising to peaks. The former was sustained by high levels of real-estate demand, while the latter was supported by a series of ongoing engineering-construction projects and strong investments in hospitals and health care facilities.

Construction demands are expected to contract in the near term, with elevated interest rates curbing residential demand and work concluding on key major non-residential projects.

BuildForce Canada released its 2023–2032 Construction and Maintenance Looking Forward report for British Columbia today. It finds that after recording strong gains in 2021 and 2022, employment is poised to contract in the short term due to a modest decline in residential construction related to rising interest rates and the wind down of work on several major projects in the province. A series of increases follow through the remainder of the forecast period, mostly in the residential sector, with total employment reaching more than 4% above 2022 levels by 2032. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

“British Columbia has been one of the busiest construction markets in Canada for several years, with many major non-residential projects stacked on top of a booming residential sector,” says Bill Ferreira, Executive Director of BuildForce Canada. “Although both will likely experience modest declines in activity in the short term, higher levels of migration into the province will boost residential construction activity across the medium and long terms, while activity in the non-residential sector will fluctuate with the ebb and flow of work on several major projects.”

A full analysis of British Columbia’s construction sector requires detailed looks at not only the provincial market as a whole, but also at the two key provincial sub-markets: the Lower Mainland and Vancouver Island. Both have their own unique market conditions.

The Lower Mainland construction market, which includes Greater Vancouver, Fraser Valley, Sunshine Coast, Squamish, and Lillooet, accounts for approximately 60% of the province’s construction employment. Regional activity strengthened again in 2022, led by peak levels of investment in both the residential and non-residential sectors.

Total construction employment in the Lower Mainland construction market is expected to contract through to 2026, as losses in the residential sector offset gains in the non-residential sector. Thereafter, it rises to the end of the forecast period, increasing by 3% to 2032, with employment in the non-residential sector accounting for all of the increase. Residential employment is mostly unchanged.

The Vancouver Island  construction market, which includes the Capital Region, Cowichan Valley, Nanaimo, Alberni-Clayoquot, Strathcona, Comox Valley, Powell River, Mount Waddington, and Central Coast, also experienced growth in 2022. Activity was supported by a modest increase in residential investment and stronger growth in the non-residential sector. Construction employment is expected to contract by just over 3% across the forecast period, as residential employment declines by nearly 4% from its 2022 peak, and non-residential employment is virtually unchanged.

BuildForce Canada projects that British Columbia’s construction industry will need to recruit 52,600 additional workers over the forecast period to keep pace with expansion and replacement demands. More than 38,000 of those workers – or 20% of the 2022 construction labour force – are expected to retire during this period. Although the addition of almost 34,000 workers under the age of 30 from local recruitment efforts will help to offset these retirements, the labour force faces a near-term need for large numbers of experienced skilled workers. By 2032, the industry could face a deficit of 18,700 workers unless anticipated recruitment is increased.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New registrations in British Columbia’s 25 largest construction trade programs have fluctuated in recent years, despite an overall increase of 14% in employment between 2013 and 2019.

Based on projected new registrations and completion trends, several trades may be at risk of undersupplying the number of new journeypersons required by 2032. Trades within this group include Boilermaker, Bricklayer, Carpenter, Gas Fitter, Glazier, Heavy Equipment Operator, Industrial Instrumentation Technician, Industrial Mechanic, Insulator, Lather, Mobile Crane Operator, Painter and Decorator, Powerline Technician, Roofer, and Welder.

The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.

In 2022, there were approximately 33,500 women employed in British Columbia’s construction industry – a contraction of about 5% from 2021 levels. Of them, 31% worked directly in on-site construction. As a share of the total, women represented just 6% of the 182,100 tradespeople employed in the industry in 2022. That figure is unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for British Columbia’s construction industry. In 2021, Indigenous workers accounted for 6.2% of the province’s construction labour force, which is a slight increase from 2016. It is also notably higher than the share of Indigenous People represented in the overall labour force. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Historically, newcomers and more established immigrants have accounted for about one quarter of British Columbia’s construction workforce. With the province expected to welcome an average of just under 80,000 newcomers every year through 2032, based on historical settlement trends, the immigrant population will be a key potential source of labour force growth for the construction sector.

Increasing the participation rate of women, Indigenous People, and new Canadians could help British Columbia’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Chris Atchison
President
British Columbia Construction Association
(250) 818-9671

Kim Barbero
CEO
Mechanical Contractors Association of British Columbia
604-205-5058

Paul de Jong
President
Progressive Contractors Association of Canada
403-620-3781

Kelly Scott
President
BC Road Builders and Heavy Construction Association
604-436-0220

Rob Viccars
Communications & Marketing
Canadian Homebuilder’s Association of British Columbia
604-432-7112 ext. 301

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Short-term contractions may ease some labour market challenges, but Canada’s construction industry is poised for further growth through 2032

April 28, 2023

Canada’s construction sector continues to perform at an elevated level following the COVID-19 pandemic. Strong levels of investments by governments across the country have helped to stimulate the economy, demand for housing remains high, and private-sector entities continue to invest in construction. These factors combined in 2022 to increase total construction investment levels by 3% over the record high recorded in 2021.

BuildForce Canada released its 2023–2032 Construction and Maintenance Looking Forward national forecast today. The report finds that construction activity will step down from its 2022 peak, with contractions projected for 2023 and 2024. The contraction is brief, however. Growth is poised to resume by 2025, and by 2032, total investment should increase by 1% over 2022 levels. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Across the forecast period, activity in the residential sector will be driven by a combination of factors. Demand for new housing is expected to contract in response to rising interest rates in the short term and return to growth between 2024 and 2029. Meanwhile, activity in the renovation and maintenance sector increases continuously. By 2032, overall residential employment is forecast to contract by a modest 5,300 workers (-1%) by 2032, with losses concentrated in the new-housing sector.

Construction in the non-residential sector will continue to benefit from stronger levels of public-sector investment in an array of projects, including major transit, utility, and road, highway, and bridge projects in Ontario, British Columbia, Quebec, Nova Scotia, and Prince Edward Island, and strong demand for projects in the industrial, commercial, and institutional (ICI) sector in every province.

Employment in the non-residential sector is poised to grow almost continuously between 2023 and 2027, rising to a forecast peak of just over 600,000 workers, and by 2032, employment should be 4% higher than levels recorded in 2022, as a moderate contraction of 1% in engineering construction is more than offset by gains in the ICI and maintenance sectors.

“The construction sector saw another strong year of growth in 2022, with overall employment growing further beyond pre-pandemic levels,” says Clyde Scollan, Chair of BuildForce Canada. “More than 1.5 million Canadians, or about one in every 13 working people, now works in the industry. The challenge now is how to manage demands, given an aging labour force. Employment has been growing faster than the labour force in recent years. These trends combined to bring the industry’s national average unemployment rate to below 5% in 2022, with a record low of 2.4% achieved in July.”

Although construction employment varies year to year depending on investment levels, labour market conditions in 2022 were particularly challenging in Prince Edward Island, Ontario, British Columbia, New Brunswick, Nova Scotia, and Saskatchewan. These provinces experienced investment increases in both residential and non-residential construction segments.

“Although market pressures should ease in the residential sector in 2023 and 2024 as demand for new housing contracts in response to interest rates, activity in most provinces’ non-residential sectors could remain elevated well into the middle years of our forecast period, given the high volume of large projects currently underway in many regions of the country,” says Bill Ferreira, Executive Director of BuildForce Canada.

Construction markets expected to remain strong, despite a near-term contraction

Across the Atlantic provinces, construction activity is either at, or will soon reach, near-term peaks. The provinces’ respective residential sectors will initially contract before returning to growth between 2024 and 2026, with demand for renovation activity projected to remain elevated. Activity in the non-residential sector will fluctuate in line with various large-scale projects such as the refurbishment of the Mactaquac Dam in New Brunswick, the West White Rose redevelopment in Newfoundland and Labrador, and several civil and health care projects. Only Nova Scotia and New Brunswick are expected to report employment growth across the forecast period.

Construction activity in Quebec will be affected by competing factors. After reporting a strong year in 2022, the province’s residential sector is expected to decline across the forecast period, in line with lowering demand for new construction. Its non-residential sector will be supported in the short term by work on major projects in Montreal and Quebec City. Growth will fluctuate in later years as these works conclude.

Ontario’s construction market enters the forecast period at a time of significant growth. Although the pace of residential activity in 2023 and 2024 is projected to moderate from previous record highs, it nonetheless remains elevated and returns to growth in 2025. The non-residential sector continues to be driven by a large inventory of major infrastructure projects and a projected recovery in commercial-building construction. Unemployment should remain at or near record-low levels.

In Manitoba, non-residential construction activity has been bolstered by work on a series of infrastructure projects. These projects cycle up and down across the forecast period, alongside strong government investment and a rebounding commercial sector. As housing starts recede from recent highs, the renovation and maintenance sector is poised to become the dominant driver of residential employment in the province.

Saskatchewan’s construction sector should rise to a peak in 2027, sustained by strong growth in its residential sector post-2023, and new and ongoing manufacturing, utility, mining, school, and health care projects. A younger demographic is well positioned to replace retiring workers.

Alberta’s construction outlook is driven by competing pressures. The residential sector, and particularly its new-housing segment, faces a series of contractions through 2032. Strong gains in renovation activity should help to partially offset the anticipated declines. The non-residential sector, on the other hand, is projected to rise to peak employment by 2030 on the strength of ongoing major road and highway, health, education, commercial, industrial, and public-transportation projects, as well as growth in the oil and gas sector.

The outlook for British Columbia’s construction sector sees varying trends. The residential sector is expected to recover swiftly after 2024 as interest rates ease and the renovation sector expands. Meanwhile, activity in the non-residential sector will fluctuate with the ebb and flow of work on several major projects and is underpinned by growth in maintenance work.

“Labour markets in many provinces are experiencing tight conditions, so much so that it has become extremely challenging for companies to recruit workers from other regions or even from other provinces,” says Ferreira. “The situation is complicated by the anticipated retirement of older and experienced workers. Although younger workers are certainly capable and well trained, they lack the years of experience, skills, and knowledge of the older workers they are replacing.”

New recruitment strategies needed

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. Replacing retiring workers typically requires several years of pre-planning to avoid the creation of skills gaps. By 2032, overall hiring requirements in the industry are expected to exceed 299,000 due to the retirement of approximately 245,000 workers (20% of the 2022 labour force) and growth in worker demand of more than 54,000.

Based on historical trends, Canada’s construction industry is expected to draw an estimated 237,800 first-time entrants aged 30 and younger from the local population, leaving the industry with a possible retirement-recruitment gap of more than 61,000 workers. Clearly, an ongoing commitment to apprenticeship development in both compulsory and non-compulsory trades will be necessary to ensure there are sufficient numbers of qualified tradespeople to sustain a skilled labour force over the long term.

“The construction industry remains focused on building a more diverse and inclusive labour force. The industry has been working hard to enhance the recruitment of individuals from groups traditionally under-represented in the construction labour force, such as women, Indigenous People, and newcomers to Canada. Creating greater awareness of the tremendous career opportunities for these individuals within the construction sector will be critical to ensuring the sector is able to meet its future workforce needs,” says Sean Strickland, Vice-Chair of BuildForce Canada.

In 2021, there were approximately 199,600 women employed in Canada’s construction industry. Of them, 27% worked directly in on-site construction. However, as a share of the total 1.16 million tradespeople employed in the industry, women accounted for just 5% of the on-site construction workforce.

The Indigenous population is another under-represented group that presents recruitment opportunities for the construction industry. In 2021, Indigenous People accounted for 5.1% of Canada’s construction labour force, which is a slight decline from the share of 5.2% observed in 2016, but is notably higher than the share of Indigenous workers represented in the overall labour force (4.1%). As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the construction workforce.

The construction industry may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Canada is expected to welcome an average of more than 444,600 new international migrants each year between 2023 and 2032. This will make newcomers a growing segment of the overall labour force. The national construction labour force was comprised of approximately 18% newcomers in 2021. That figure is notably lower than the overall share of newcomers in the total labour force (27%).

Increasing the participation rate of women, Indigenous People, and newcomers could help Canada’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact:

Bill Ferreira
Executive Director
BuildForce Canada
ferreira@buildforce.ca
(613) 569-5552 ext. 2220

Clyde Scollan
Chair
BuildForce Canada
(604) 802-0856

Sean Strickland
Vice-Chair
BuildForce Canada
(613) 236-0653

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Alberta’s construction sector poised for a near-term peak before employment demands ease to 2032

April 27, 2023

Alberta’s construction sector continued its strong post-pandemic recovery in 2022, buoyed by further growth in its new-housing market and by increased activity across its non-residential sector. Market conditions remain strained, as a result, as many residential-sector trades, in particular, reported recruiting challenges.

BuildForce Canada released its 2023–2032 Construction and Maintenance Looking Forward report for the province today. The outlook calls for construction employment to remain unchanged in 2023, before experiencing a series of contractions through at least 2026 as the residential-construction sector experiences a series of setbacks, with demand for new housing declining.

Activity in the non-residential sector, meanwhile, is underpinned by ongoing major road, highway, health, education, commercial, industrial, and public-transportation projects, as well as growth in the oil and gas sector.

The modest gain (+2%) in non-residential employment that occurs as a result is more than offset by a loss of 10% in residential employment across the 10-year forecast period. Overall employment contracts by 3%. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

“The challenge for Alberta’s construction and maintenance sector will be developing a broad-enough labour force in the short term to match employment gains,” says Bill Ferreira, Executive Director of BuildForce Canada. “Many trades are facing recruiting challenges at the moment. Although a slowdown in the residential sector will help to ease some of those pressures, a long list of major projects in the non-residential sector, combined with seasonal industrial shutdown and maintenance activity, will keep that pressure elevated.”

The BuildForce Canada forecast anticipates that Alberta’s construction industry will need to replace an estimated 38,200 workers, or 21% of its 2022 labour force, who are expected to retire by 2032. The province’s younger demographics should help to close much of that gap, with an estimated 38,000 new workers under the age of 30 projected to enter the labour force from the local population. This leaves a recruiting gap of approximately 5,100 additional workers – those positions created in response to sectoral growth – to be filled by 2032.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New registrations in Alberta’s 25 largest construction trade programs experienced significant declines between 2014 and 2019, contracting by 57%. That rate was far greater than the 19% contraction in employment over the same period. Completions were also trending down across the same period, albeit at a slower pace. Combined, these trends are likely to reduce the near-term numbers of new certified workers.

Based on projected new registrations and completion trends, several Alberta trades may be at risk of potentially undersupplying the number of new journeypersons required by 2032. Trades within this group include Boilermaker, Bricklayer, Carpenter, Construction Electrician, Glazier, Heavy-Duty Equipment Technician, Hoist Operator (Boom Truck), Hoist Operator (Wellhead) Industrial Instrumentation Technician, Industrial Mechanic, Insulator (heat and frost), Powerline Technician, Roofer, Sheet Metal Worker, and Welder.

The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.

In 2022, there were approximately 37,500 women employed in Alberta’s construction industry. That figure represented an increase of about 1,500 over 2021 totals. Of them, however, only 32% worked directly in on-site construction. As a share of the total, women made up just 7% of the 174,700 tradespeople employed in Alberta’s construction industry in 2022. These figures are virtually unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for Alberta’s construction industry. The province has historically been successful in increasing the share of Indigenous People in its construction workforce. In 2021, Indigenous workers accounted for 6.7% of the province’s construction labour force, which is a slight increase over totals reported in 2016 and is notably higher than the share of Indigenous People represented in the overall labour force. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, Alberta is expected to welcome an average of nearly 63,900 new international migrants each year between 2023 and 2032, making the immigrant population a key potential source of labour force growth. Currently, newcomers and more established immigrants make up about 19% of the province’s construction workforce.

Increasing the participation rate of women, Indigenous People, and new Canadians could help Alberta’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Terry Parker
Executive Director
Building Trades of Alberta
780-405-3777

Paul de Jong
President
Progressive Contractors Association of Canada
403-620-3781

Ken Gibson
President
Alberta Construction Association
780-233-6738

Dennis Perrin
Prairies Director
CLAC
587-785-1836

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Manitoba’s construction outlook calls for moderate growth, with employment demands likely met by a younger demographic

April 26, 2023

After enjoying a strong year in 2021, Manitoba’s construction and maintenance industry experienced more moderate activity in 2022, as further work on a number of infrastructure projects offset most of the contractions created by the winding down of activity on the Keeyask dam project. Total employment was virtually unchanged as a result.

BuildForce Canada released its 2023–2032 Construction and Maintenance Looking Forward report for Manitoba today. The outlook calls for a moderate contraction in employment across the forecast period (-1%), as a contraction of just below 3% in the residential sector more than offsets a slight increase of just below 1% in the non-residential sector. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Across the forecast period, slowing demand for new-housing construction should be offset by almost continuous growth in demand for residential renovation and maintenance work. Meanwhile, the non-residential sector should see moderate, but sustained employment growth between 2025 and 2030 as a series of projects cycle up and down.

“Construction activity in Manitoba should remain at a relatively constant and elevated level across the 10-year forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “That’s a positive sign for the industry, as it means labour markets should remain balanced across most of the forecast years. It also means that the industry should be able to satisfy its hiring requirements, given the province’s comparatively younger demographic.”

BuildForce Canada expects that approximately 7,600 workers, or nearly 19% of its 2022 labour force, will retire by 2032. At the same time, the industry is expected to attract an estimated 8,700 new workers under the age of 30 from the local population. This trend shows that industry efforts to boost recruitment to meet future needs are working, and that the industry should be able to meet its anticipated labour force demands throughout the forecast period.

“The development of skilled tradespersons in the construction industry takes years, and most often requires participation in a provincial apprenticeship program,” said Ramona Coey, Executive Director of the Mechanical Contractors Association of Manitoba. “After years of declines, it was encouraging to see industry efforts to promote careers in the trades bearing some fruit as evidenced by the recent upswing in new registrations in Manitoba’s 17 largest trade programs. It is important this momentum is not lost as we work to fill the labour shortage experienced in several key trades.”

Based on projected new registrations and completion trends, however, several Manitoba trades may be at risk of potentially undersupplying the number of new journeypersons required by 2032. Trades within this group include Bricklayer, Carpenter, Mobile Crane Operator, Roofer, and Welder.

“The construction industry is working collaboratively to build a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of youth, individuals from equity-deserving groups traditionally under-represented in the construction sector, and from outside the country through permanent immigration,” said Paul de Jong, President of the Progressive Contractors Association of Canada.

In 2022, there were approximately 5,930 women employed in Manitoba’s construction industry. Of them, only 26% worked directly in on-site construction. Women represented just 4% of the 38,600 tradespeople employed in Manitoba’s industry in 2022. All figures are virtually unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for Manitoba’s construction industry. In 2021, Indigenous workers accounted for approximately 17% of the province’s construction labour force. That figure was the highest among all provincial labour forces and is notably higher than the share of Indigenous People represented in the overall labour force (13%). As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, Manitoba is expected to welcome an average of just over 11,000 newcomers every year through 2032, making the immigrant population a key potential source of labour force growth. Currently, newcomers and more established immigrants make up about 15% of the province’s construction workforce. This figure is notably lower than the share in the overall provincial labour force.

“To avoid chronic labour force shortages, increasing the participation rate of women, Indigenous People, and new Canadians will be imperative to help Manitoba’s construction industry meet its future labour force needs,” said Darryl Harrison, Director of Stakeholder Engagement with the Winnipeg Construction Association.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Ramona Coey
Executive Director
Mechanical Contractors Association of Manitoba
204-774-2404

Paul de Jong
President
Progressive Contractors Association of Canada (PCA)
403-620-3781

Darryl Harrison
Director, Stakeholder Engagement
Winnipeg Construction Association
204-755-8664 ext. 2249

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Sustained residential-sector activity drives growth across Saskatchewan’s construction and maintenance sectors

April 26, 2023

Saskatchewan’s construction sector is in the midst of a sustained period of growth, as elevated levels of activity in both the residential and non-residential sectors should bring work to a peak in 2024. Market conditions should ease thereafter but remain elevated by historical standards through 2032.

The BuildForce Canada 2023–2032 Construction and Maintenance Looking Forward report for Saskatchewan, released today, anticipates that growth in the province’s residential sector could ease slightly in 2023 before rising to a peak in 2028. Activity in the non-residential sector, meanwhile, will remain elevated through 2024, supported by new and ongoing manufacturing, utility, mining, school, and health care projects, before slowing to 2026 as many of these projects conclude.

After posting an increase of 6% in 2022, employment demands are expected to grow by a further 8% to a peak in 2027, before contracting across the remainder of the 10-year forecast period. By 2032, overall employment is expected to rise by 3%, driven by growth in the province’s residential sector.

“The residential sector will be a real driver of growth for Saskatchewan’s construction sector through most of the forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “Demand is being sustained by strong migration to the province, which will bolster activity into the later forecast years. The outlook for the non-residential sector, on the other hand, is more closely tied to selected major projects, including the Jansen potash mine.”

Such growth could strain already-challenged labour markets. Entering the forecast period, many of Saskatchewan’s residential and non-residential trades and occupations were experiencing tight labour markets. Meanwhile, employment is outgrowing the labour force, reducing the industry’s annual average unemployment rate to 6.3% in 2022.

“Across the forecast period to 2032, BuildForce anticipates that as many as 8,600 workers, or 21% of the province’s 2022 construction labour force, will exit the industry through retirement. At the same time, demand growth will require the addition of 2,200 workers, bringing the total recruitment requirement to 10,800 workers. This will keep labour force development front and centre for all contractors in the industry,” says Warren Douglas of the Construction Labour Relations Association of Saskatchewan Inc.

The BuildForce analysis is based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Given the province’s comparatively younger demographics, most of the industry’s hiring requirements could be met by an estimated 9,500 first-time new entrants under the age of 30 from the local population. This would leave a gap of about 1,300 workers that will need to be recruited from outside the local construction labour force. This hiring gap will be exclusive to the residential sector, as the non-residential sector is expected to attract more new-entrant workers than those it loses to retirement.

“The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program,” says Dennis Perrin, Prairies Director of CLAC. “Registrations in Saskatchewan’s 17 largest construction trades programs have declined over the past decade, which is of considerable concern to everyone in the province’s construction industry.”

Given the current pace of new apprenticeship registrations and completions, several trades may be at risk of undersupplying the number of new journeypersons required by 2032. These trades include Boom Truck Operator, Bricklayer, Carpenter, Construction Electrician, Insulator (heat and frost), Sheet Metal Worker, Steamfitter/Pipefitter, and Welder.

“The construction industry is working collaboratively to build a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of youth, individuals from equity-deserving groups traditionally under-represented in the construction sector, and from outside the country through permanent immigration,” says Paul de Jong, President of the Progressive Contractors Association of Canada.

In 2022, there were approximately 6,030 women employed in Saskatchewan’s construction industry. That figure represents an increase of 310 over the 5,720 reported in 2021. Of them, 40% worked directly in on-site construction. As a share of the total, women made up just 6% of the 37,900 tradespeople employed in the industry in 2022. That figure is unchanged from 2021.

The Indigenous population is another group that presents recruitment opportunities for Saskatchewan’s construction industry. The province has been successful in increasing the share of Indigenous People in the construction workforce. In 2021, Indigenous workers accounted for approximately 14% of the province’s construction labour force, which is an increase of one percentage point from the share observed in 2016. It is also notably higher than the share of Indigenous People represented in the overall labour force (11.5%). As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, Saskatchewan is expected to welcome an average of more than 9,900 newcomers every year through 2032, making the immigrant population a key potential source of labour force growth. Newcomers comprised about 10% of the total construction labour force in 2021, which is smaller than the 16% share of immigrants employed in the province’s overall labour force.

“Increasing the participation rate of women, Indigenous People, and new Canadians will be important in helping Saskatchewan’s construction industry continue to meet its future labour force needs,” says Graham Snell, President of Merit Saskatchewan. “Workforce diversity will be increasingly important as the available pool of younger workers declines and competition among industries to recruit them intensifies. It’s not just the right thing to do, but also critical to ensuring the sector has the skilled resources in the future to respond in a timely manner to the needs of the Canadian economy.”

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Paul de Jong
President
Progressive Contractors Association of Canada (PCA)
403-620-3781

Warren Douglas
Executive Director
Construction Labour Relations Association of Saskatchewan Inc.
306-352-7909

Graham Snell
President
Merit Saskatchewan
306-961-7346

Dennis Perrin
Prairies Director
CLAC
587-785-1836

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Labour force challenges remain in Ontario, where construction activity continues to rise

April 25, 2023

Labour market challenges could continue across Ontario’s construction industry into the near future, as ongoing activity in both the residential and non-residential sectors builds employment to a peak in 2028 and adds pressure to already-tight recruiting conditions.

BuildForce Canada published its 2023–2032 Construction and Maintenance Looking Forward report for Ontario today. It finds that labour markets for many of Ontario’s construction trades and occupations were strained at the end of 2022. Despite rising interest rates, activity in the residential sector remained strong, spurred by high levels of migration into the province and high levels of renovation activity. Meanwhile, the province’s non-residential sector continues to be buoyed by a long list of major projects in nearly every region.

Looking across the 10-year forecast period, activity in the province’s residential sector will be influenced by several key variables. Rising interest rates are expected to contract the province’s new-housing construction sector in 2023 and 2024. These contractions will be moderated somewhat by strong migration into the province, while overall residential activity will be supported by a renovation and maintenance sector that is expected to grow continuously through 2032. After contracting slightly in 2023 and 2024, overall residential employment is expected to reach a peak in 2030, before slowing through 2032.

Meanwhile, the province’s non-residential sector is projected to grow across the forecast period, as major projects in every region drive demands higher. Employment is expected to reach a peak of 16% above 2022 levels in 2027 as work culminates on many major projects. Key projects include light-rail transit and subway projects in major urban centres, ongoing nuclear refurbishments at Bruce Power and Ontario Power Generation, and major health-sector and other institutional projects across all regions.

The outlook for the complete forecast period sees construction and maintenance employment rising to a peak in 2028, by which time it will have increased by nearly 8% above 2022 levels. By 2032, however, it is expected to slow to 5% above 2022 levels, with growth pronounced in the non-residential sector (+11%) and a more modest expansion of 2% forecast for the residential sector.

These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

“Ontario’s construction and maintenance sector is poised for a number of years of strong growth,” says Bill Ferreira, Executive Director of BuildForce Canada. “Its challenge will be working within already-taxed labour markets. A number of older workers who exited the labour market during the COVID-19 pandemic have been slow to return. This fact, combined with steady employment gains, has pushed construction-sector unemployment rates to record-low levels. The situation is further complicated by the loss of skills and experience created by the departure of these older workers, and which cannot easily be replaced by new hires.”

Although interconnected, Ontario’s five regions – Central, Eastern, Greater Toronto Area, Northern, and Southwestern – each feature discrete labour market conditions and can create complementary and competing demands for workers.

Central Ontario has seen its construction sector bolstered in part by a significant outflow of residents from the Greater Toronto Area in recent years. Pandemic-driven work-from-home arrangements, combined with improved rail transportation and a lower cost of living, have helped to advance new-housing construction in the region. The local housing market is expected to contract in 2023 due to rising interest rates, but growth is expected again by 2025. Non-residential employment will be sustained by a combination of major engineering-construction projects, many of them in the Hamilton area. Total construction employment is anticipated to add 1% over 2022 levels, with increases exclusive to the non-residential sector.

Eastern Ontario reported some of the tightest labour markets in the province in 2022, with most trades and occupations strained. Although recruiting challenges are expected to ease in the residential sector in the near term, the outlook for the non-residential sector suggests challenges could remain through 2027 and 2028. The regional market is benefiting from a series of high-value public-sector projects, including the second phase of Ottawa’s light rail line, the redevelopment of Parliament Hill’s Centre Block, and the refurbishment and construction of several other federal buildings. New hospital projects in Ottawa and Kingston add to market demands in later years. Overall employment rises to a peak in 2027 and moderates thereafter.

The Greater Toronto Area’s construction market is underpinned by a series of large-scale public transportation, nuclear refurbishment, new hospital, and other government building restoration projects that bring non-residential employment to a peak in 2027. Meanwhile, the regional residential sector is expected to emerge from a short contraction by 2024 and will be supported by a combination of a growing and aging housing stock that requires continual maintenance, and by a general trend of older individuals investing in their homes to age in place. Overall construction employment grows by 27,200 workers (+16%) over 2022 levels by 2032.

The construction market in Northern Ontario is heavily influenced by activity in the mining and utility sectors. With both expected to report strong gains in 2023, and with work on the Thunder Bay correctional facility and the Weeneebayko hospital scheduled to begin in later forecast years, non-residential employment should be sustained at elevated levels through at least 2027. The outlook for the residential sector follows a similar trend.

Southwestern Ontario has been supported by a strong housing market, also driven by out-migration from the Greater Toronto Area. After a brief decline in 2022, the regional residential market should rise to peak employment by 2027 before receding in later years. The local non-residential sector, meanwhile, begins the forecast period operating at elevated levels, with ongoing work on the Bruce Power nuclear refurbishment, the Gordie Howe bridge, new battery manufacturing and auto retooling investments, and a significant rise in industrial shutdown/turnaround maintenance work in Sarnia. The proposed start of the Windsor acute care hospital in 2026 adds to employment later in the period. By 2032, Southwestern Ontario’s construction sector is expected to contract modestly from elevated 2022 levels.

Meeting peak demands across Ontario’s discrete regions will be challenged by limited interregional mobility, as high levels of demand are projected to exist in most regional construction markets across the province over the near term. Construction also faces the added challenge of an aging workforce. When combined with employment increases created by growth, the expected retirement of more than 82,600 workers (18% of the 2022 labour force) will increase overall industry hiring requirements to nearly 119,000 over the forecast period.

Due in part to increased and targeted promotional efforts, the provincial construction industry has grown the number of young workers under the age of 25 in its labour force by 7% since 2019. Across the entire forecast period, it is expected to recruit approximately 88,400 new entrants under the age of 30 from within the province. This leaves a projected gap of almost 30,500 workers that will need to be filled from a variety of sources outside the existing labour force to meet demands.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New registrations in the province’s 32 largest trade programs reached record levels in 2019, and have risen faster than employment over the past decade as a whole, leading to an increased supply of journeypersons.

Based on the current pace of new apprenticeship registrations and completion trends, several trades may be at risk of undersupplying the number of new journeypersons required by 2032.  They include Bricklayer, Carpenter, Construction Craft Worker, Floor Covering Installer, Glazier, Heavy-Duty Equipment Operator, Industrial Instrumentation Technician, Insulator (heat and frost), Mobile Crane Operator, Painter and Decorator, Roofer, Tractor Trailer Driver, and Welder.

The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.

In 2022, Ontario’s construction industry employed approximately 70,400 women. That figure represents an increase of nearly 2,700 from 2021’s total. Of them, only 23% worked directly in on-site construction, however. As a share of the total, women represented just 4% of the more than 435,000 tradespeople employed in Ontario in 2022. Those figures are unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for Ontario’s construction industry. In 2021, Indigenous workers accounted for 3% of the province’s construction labour force. That figure is unchanged from the share observed in 2016, and slightly higher than the 2.5% represented in the overall labour force. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, Ontario is expected to welcome an average of nearly 190,500 newcomers every year through 2032. This fact could make the immigrant population a key source of labour force growth. In 2021, newcomers comprised 27% of Ontario’s construction labour force.

Increasing the participation rate of women, Indigenous People, and new Canadians could help Ontario’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Mark Arsenault
Business Manager and Secretary Treasurer
Provincial Building and Construction Trades Council of Ontario
647-402-0390

Mike Carter
Executive Director
London & District Construction Association
519-453-5322

Giovanni Cautillo
President
Ontario General Contractors Association
905-671-3969

Ian Cunningham
President
Council of Ontario Construction Associations
416-968-7200 ext. 224

John A. DeVries
President & GM
Ottawa Construction Association
613-236-0488, ext. 10

Paul de Jong
President
Progressive Contractors Association of Canada
403-620-3781

Tony Fanelli
Executive Director
Construction Labour Relations Association – Ontario
647-296-3402

Andrew Pariser
Vice-President
RESCON
416-970-7665

Wayne Peterson
Executive Director
Construction Employers Coordinating Council of Ontario
905-516-6693

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

An ongoing construction recovery complicates labour force challenges in Prince Edward Island

April 24, 2023

Construction activity in Prince Edward Island continues to recover in the wake of the COVID-19 pandemic, with strong activity in both the residential and non-residential sectors contributing to overall employment growth. The challenge for the industry will be in responding to the considerable demands such growth has placed on almost all of its construction and maintenance trades and occupations.

The BuildForce Canada 2023–2032 Construction and Maintenance Looking Forward report for Prince Edward Island, released today, anticipates that market pressures will peak in 2023 before contracting almost continuously across the remainder of the forecast period. By the end of the decade, employment is expected to contract by 6% over 2022 levels, with residential employment declining by just under 2% and non-residential employment by just below 10%.

“PEI’s construction industry faces similar challenges to those of other provinces, namely higher sustained levels of construction activity tempered by an aging labour force,” says Bill Ferreira, Executive Director of BuildForce Canada. “The construction sector is becoming increasingly dependent on the mobility of skilled trades from outside the province and the scaling up of local recruitment and training capacity.”

“The major challenge currently facing the industry is the immediate requirements for large numbers of skilled and experienced workers across almost all of its key trades and occupations. Not all of these requirements can be met by new or young, inexperienced workers. The industry is being further challenged by the labour force’s inability to grow at the same pace as employment, thus further reducing already-low unemployment levels. The industry reached near full employment between June and October of 2022,” says Sam Sanderson, General Manager of the Construction Association of Prince Edward Island (CAPEI).

These factors will likely complicate existing recruiting challenges. The province’s construction industry will need to recruit 1,590 additional workers through 2032 to keep pace with labour force demands and to replace 1,490 retiring workers, or 22% of its 2022 construction labour force. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Although the industry is projected to recruit as many as 1,450 workers aged 30 and younger over the decade, it will likely need to recruit close to 140 additional workers to meet demands.

“The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. CAPEI has been working hard with the province to increase interest and registrations in construction trades programs, which should lead to an increase in completions in the coming years. Foundational to this training is a new and innovative collaborative approach to the educational experience that better prepares graduates for dealing with the complex environmental and sustainability issues that will be seminal in future building construction,” says Sanderson.

Based on the current pace of new apprenticeship registrations and completion trends, only the Carpenter and Construction Electrician trades may be at risk of undersupplying the number of required journeypersons by 2032.

The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.

In 2022, there were approximately 900 women employed in Prince Edward Island’s construction industry; a small increase over the 850 employed in 2021. Of them, 43% worked on site, directly on construction projects, while the remaining 57% worked off site, primarily in administrative and management-related occupations. Women accounted for just 6% of the 6,400 tradespeople employed in Prince Edward Island in 2022. That share is unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for Prince Edward Island’s construction industry. In 2021, Indigenous workers accounted for approximately 3% of the province’s construction labour force. That figure is more than double the share observed in 2016. It is also higher than the share of Indigenous workers represented in the overall labour force. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, the province is expected to welcome an average of 3,500 newcomers to Canada every year through 2032. This fact could make the immigrant population a key source of labour force growth. In 2021, newcomers accounted for just over 6% of the total construction labour force in Prince Edward Island. That figure is lower than the 11% they accounted for across all industries in the province.

Increasing the participation rate of women, Indigenous People, and new Canadians could help Prince Edward Island’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Sam Sanderson
General Manager
Construction Association of Prince Edward Island
902-628-5421

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

New Brunswick sees sustained, strong near-term construction demands, followed by peak employment in later years

April 24, 2023

Sustained activity in New Brunswick’s residential and industrial, commercial, and institutional sectors created further growth in the province’s construction industry in 2022. With further gains expected in 2023, already-strained labour markets are unlikely to ease much in the near term.

New labour market forecast data by BuildForce Canada suggests that further increases are expected across New Brunswick’s residential and non-residential construction sectors in 2023. These are spurred by increased demand for residential renovation activity and peak investment levels in the industrial, commercial, and institutional (ICI) sector.

Residential demands are expected to contract through the remainder of the near term before rebounding into the later years of the forecast period in response to growing demands for renovation and maintenance work. Demands in the non-residential sector, meanwhile, will moderate briefly before rising to a peak in 2029, in line with work on the Mactaquac Dam.

BuildForce Canada’s 2023–2032 Construction and Maintenance Looking Forward report for New Brunswick, released today, anticipates construction employment to rise to a short-term peak in 2023, before moderating to 2026 and cycling back up to a peak in 2027 that is largely sustained through the remainder of the forecast period. Employment adds 660 workers, or 3% over 2022 levels.

“New Brunswick’s labour force faces a dual challenge across the forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “Labour markets were strained entering this forecast period and will remain at or near capacity for many residential and non-residential trades and occupations in the short term. In the longer run, its challenge will be addressing market requirements with a diminished pool of workers that is created by an aging provincial demographic.”

Rising demands will require the province’s construction labour force to increase by as many as 2,000 workers across the decade. The retirement of an expected 6,500 workers, or 27% of its 2022 labour force, over the same block of time will increase overall hiring requirements to 8,500 workers. This challenge could be further complicated by the shrinking pool of available new entrants as population growth slows and fewer youth are available to enter the labour force. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

The industry’s hiring requirement could be partly addressed through the recruitment of a potential 4,700 workers under the age of 30 from the local population, but based on current analysis, a gap of some 3,800 workers may emerge.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New Brunswick has seen significant fluctuations in registration levels in its 16 largest trade programs over recent years. New registrations declined by approximately 7% from 2010 to 2019, while trade employment declined at a slightly faster pace of 12% over the same period.

Based on the current pace of new apprenticeship registrations and completion trends, several trades may be at risk of undersupplying the number of journeypersons required by 2032: Bricklayer, Boilermaker, Carpenter, Sprinkler System Installer, and Welder.

“The construction industry remains focused on building a more diverse and inclusive labour force and to that end, the industry has been focused on enhancing the recruitment of younger workers into the trades, particularly those from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada,” says John Ryan Morrison, Executive Director of the Construction Association of New Brunswick.

In 2022, there were approximately 2,810 women employed in New Brunswick’s construction industry. That figure was unchanged from 2021. Of them, 30% worked on site, directly on construction projects, while the remainder worked off site, primarily in administrative and management-related occupations. Of the 21,500 tradespeople employed in the provincial industry, women made up only 3%. That figure is unchanged from 2021.

The Indigenous population is another under-represented group that presents recruitment opportunities for New Brunswick’s construction industry. In 2021, Indigenous workers accounted for approximately 3.7% of the province’s construction labour force, a slight increase from levels observed in 2016. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, the province is expected to welcome an average of 8,520 newcomers every year through 2032. This fact could make the immigrant population a key source of labour force growth. As of 2021, the construction labour force share of immigrants was 3%. That is less than half of the immigrant share in the overall labour force, and significantly lower than the share in Canada’s construction industry.

“With retirements increasing in the provincial construction labour force, increasing the participation rate of women, Indigenous People, and newcomers to Canada is imperative to ensuring New Brunswick’s construction industry is able to meet its future labour force needs,” says Tom McGinn, Executive Director of the New Brunswick Road Builders and Heavy Construction Association.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Tom McGinn
Executive Director
New Brunswick Road Builders and Heavy Construction Association
506-454-5079

John Ryan Morrison
Executive Director
Construction Association of New Brunswick
506-459-5770

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Newfoundland and Labrador sees construction demands rise to a peak in 2029

April 24, 2023

Strong activity in the province’s engineering-construction sector will drive construction and maintenance employment demands in Newfoundland and Labrador to a peak of nearly 16,000 workers in 2029, before they contract by as many as 940 workers (-6%) below 2022 levels by 2032.

BuildForce Canada’s 2023–2032 Construction and Maintenance Looking Forward report for Newfoundland and Labrador, released today, finds the province in the midst of a period of growth. Continued increases in new-housing, institutional, and engineering construction sectors drove employment higher in both the residential and non-residential sectors in 2022. Meanwhile, slower rates of growth in the province’s construction labour force contributed to unemployment levels as low as 10% during the summer months.

The remainder of the short-term outlook (i.e., through 2025) calls for moderate increases in the residential construction sector, driven by strong rates of migration to the province, and elevated levels of activity in the non-residential sector.

“The construction and maintenance industry in Newfoundland and Labrador is well positioned to withstand any forthcoming contractions created by rising interest rates and a slowing global economy in the short term,” says Bill Ferreira, Executive Director of BuildForce Canada. “Its housing market should continue to grow given its relative affordability, and activity in the non-residential sector is poised to rise to a peak with work on the West White Rose offshore platform and later the Equinor Bay du Nord project. The longer-run outlook, however, remains constrained by older age demographics, a declining population, and the completion of major projects.”

An aging workforce could present a significant challenge for the province’s construction industry. An estimated 5,700 workers, or 29% of its 2022 labour force, is expected to retire between 2023 and 2032. Over the same period, the industry is expected to recruit just 3,400 new entrants aged 30 or younger from the local population.

Although there are a number of additional major proposed projects being tracked, they are not presently included in the BuildForce analysis.  Furthermore, the BuildForce analysis does not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years. Nor does it account for any anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

“Newfoundland and Labrador’s construction sector experienced a significant recovery in 2022, and as the global economy recovers and demand for electrification increases, the province’s construction sector is well positioned to make a substantial contribution to the economic success of the country,” says Terry French, President of the Construction Labour Relations Association of Newfoundland and Labrador.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program.

Prior to the COVID-19 pandemic, new registrations in the 11 largest construction trade programs were declining. Fewer new journeypersons were entering the workforce relative to the levels observed over the past decade as a result. Following this trend, completions were also trending down leading into 2020, albeit at a slower pace. With new registrations declining at a faster rate than trade employment, there is a risk for an insufficient number of newly certified journeypersons to sustain workforce requirements over the long term.

Based on projected new registrations, several trades may be at risk of undersupplying the number of new journeypersons required by 2032. Trades within this group include Construction Electrician, Ironworker, Mobile Crane Operator, Welder, and pipefitting trades.

“The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment and training of youth, individuals from equity-deserving groups traditionally under-represented in the construction sector and from outside the country through permanent immigration,” says Darin King, Executive Director of the Building Trades of Newfoundland and Labrador.

In 2022, there were approximately 1,780 women employed in Newfoundland and Labrador’s construction industry, an increase of nearly 300 over 2021 levels. Of them, 60% worked on site, directly on construction projects, while the remaining 40% worked off site, primarily in administrative and management-related occupations. Of the 15,200 tradespeople employed in the industry, women made up only 7% of the total workforce.

The Indigenous population also represents potential recruitment opportunities for the construction industry in Newfoundland and Labrador. In 2021, Indigenous workers accounted for approximately 9% of the province’s construction labour force. This figure was unchanged from 2016 and matches the share of Indigenous People represented in the overall labour force. As the Indigenous population is the fastest growing in Canada, and as Indigenous workers seem predisposed to the pursuit of careers within the sector, the industry may need to dedicate further efforts to increasing the recruitment of Indigenous People.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, the province is expected to welcome an average of approximately 3,770 newcomers to Canada every year between 2023 and 2032, making the immigrant population a key source of labour force growth. As of 2021, newcomers to Canada and established immigrants made up about 2% of the province’s construction workforce.

Increasing the participation rate of women, Indigenous People, and newcomers to Canada would go a long way to help Newfoundland and Labrador’s construction industry address its future labour force needs.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Terry French
President
Construction Labour Relations Association – NL
709-753-5770

Darin King
Executive Director
Trades NL: Building Trades of Newfoundland & Labrador
709-726-4560

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

Rising construction demands may create further challenges for Nova Scotia’s construction labour force

April 24, 2023

Construction and maintenance activity in Nova Scotia recorded its fourth consecutive year of growth in 2022, as ongoing and new major projects in the non-residential sector added to growth already created by strong levels of new-home construction and renovation work. These factors combined to push overall industry employment above 30,000 workers in 2022 in the 34 trades and occupations tracked by BuildForce Canada, an 8% increase over levels recorded in 2021. Overall employment is expected to rise further, exceeding 33,200 workers in 2028, before dropping off slightly toward the end of the 2023–2032 forecast period.

BuildForce Canada released its 2023–2032 Construction and Maintenance Looking Forward report for Nova Scotia today. The outlook anticipates that overall construction employment in the province will be 3% higher by 2032 than levels achieved in 2022.

“Nova Scotia’s construction sector has been supported in recent years by a housing market that is being driven by elevated migration levels and strong activity in engineering construction and in the institutional sector,” says Bill Ferreira, Executive Director of BuildForce Canada. “Although those drivers are expected to moderate somewhat into 2023, later years call for elevated demand for residential renovation work, and increased growth in the engineering construction and industrial, commercial, and institutional sectors.”

“The provincial construction workforce may be faced with a challenge to keep up with imminent labour force demands. Even as 2022 began, many trades and occupations reported elevated recruiting challenges, which may be sustained across the forecast period with demands created by rising investment in both residential and non-residential construction, as well as increasing retirements and competition from other industries for a declining share of younger workers,” says Duncan Williams, President and CEO of the Construction Association of Nova Scotia.

The BuildForce Canada market outlook projects that as many as 7,800 workers, or 24% of the current labour force, will retire from Nova Scotia’s construction industry by 2032. Coupled with an anticipated rise in employment demands, the industry will need to recruit as many as 10,900 workers by 2032. These numbers do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor do they account for any anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Over the same period, the industry is expected to recruit a potential 6,600 new workers aged 30 or younger from the local population, leaving a gap of 4,100 workers that will need to be filled from a variety of sources outside the existing labour force.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. Apprenticeship registrations in Nova Scotia’s 20 largest trade programs have been on an upward curve over the past decade, a fact that may be attributable to increased construction activity.

At the current pace of new apprenticeship registrations and completions, several trades may be at risk of undersupplying the number of new journeypersons required by 2032. These trades include Bricklayer, Carpenter, Construction Electrician, Heavy Equipment Technician, Industrial Mechanic (Millwright), Gas Fitter, Mobile Crane Operator, Roofer, Steamfitter/Pipefitter, and Welder.

“The construction industry remains focused on building a more diverse and inclusive labour force. To that end, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, African Nova Scotians, Persons with Disabilities, and newcomers to Canada to help meet our future labour force needs,” says Trent Soholt, Executive Director of the Nova Scotia Construction Sector Council.

In 2022, Nova Scotia’s construction industry employed approximately 4,150 women; 270 more than in 2021. Of them, 26% worked on site, directly on construction projects. Women made up just 4% of the 30,900 tradespeople employed in the province’s construction industry.

The Indigenous population is another under-represented group that represents potential recruitment opportunities for Nova Scotia’s construction industry. In 2022, Indigenous workers accounted for approximately 5% of the province’s construction labour force, or about the same percentage as among the overall provincial labour force. As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the province’s construction industry.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement trends, the province is expected to welcome an average of 1,300 new international migrants each year between 2023 and 2032. Newcomers have played an increasingly important role in replenishing Nova Scotia’s workforce, with the share of immigrants in the workforce doubling over the past decade – from 5% in 2011 to 10% in 2021.

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Trent Soholt
Executive Director
Nova Scotia Construction Sector Council – ICI
902-832-4761

Duncan Williams
President and CEO
Construction Association of Nova Scotia
902-468-2267

Funded by the Government of Canada’s Sectoral Workforce Solutions Program.

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