Press Releases

A strong rebound in the residential sector drives construction employment forward in Saskatchewan

March 27, 2024

March 27, 2024 – Ottawa, ON

As was the case in many provinces, Saskatchewan’s construction sector saw modest growth in 2023. Investment levels in the non-residential sector rose notably in response to strong activity in transportation, manufacturing, resource, and public infrastructure projects. Investment in the residential sector, meanwhile, contracted as interest rates rose.

The BuildForce Canada 2024–2033 Construction and Maintenance Looking Forward report for Saskatchewan, released today, finds that short-term outlooks for the province’s residential and non-residential construction will chart diverting courses.

After contracting again in 2024, residential-construction activity is expected to grow strongly between 2025 and 2028, and remain elevated to 2033. This occurs as lending rates decline and as the population grows. Activity in the residential renovations segment is poised to grow continuously after 2024.

In contrast, non-residential activity is projected to peak in 2024 with strong engineering-construction investment levels complementing robust construction of industrial, commercial, and institutional buildings. Between 2026 and 2031, however, activity remains largely unchanged before contracting in later years of the outlook.

As a result of these factors, overall construction employment is projected to increase across the forecast period. Residential employment is projected to grow by 18% above 2023 levels by 2033, with gains greatest in new housing. Non-residential employment is poised to rise by less than 1%, with gains in industrial, commercial, and institutional building employment and maintenance employment offsetting a loss in engineering-construction employment.

“Immigration spiked in Saskatchewan in 2023 and is forecast to remain well above historical levels into 2025 at least. This helped create strong demand for new housing in the province, and will be a driver of growth for the residential sector into the middle years of our forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “The outlook for the non-residential sector, on the other hand, is more closely tied to selected major projects, including the Jansen potash mine, as well as growth in institutional and government building projects.”

Such growth could strain already-challenged labour markets. Entering the forecast period, many of Saskatchewan’s non-residential trades and occupations were experiencing tight labour markets, and strong contractions are projected in the residential sector between 2025 and 2027. Compounding these challenges is an average annual unemployment rate of just 6.1% in 2023 – among the lowest levels seen in the province in nearly 10 years.

“Across the forecast period to 2033, BuildForce anticipates that as many as 9,500 workers, or 23% of the province’s current construction labour force, will exit the industry through retirement. At the same time, demand growth will require the addition of 4,000 workers, bringing the total recruitment requirement to 13,500 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 does not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

Given the province’s comparatively younger demographics, most of the industry’s hiring requirements could be met by an estimated 10,100 first-time new entrants under the age of 30 from the local population. This would leave a gap of about 3,400 workers that will need to be recruited from outside the local construction labour force.

“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. “It’s clear even more will need to be done to improve the promotion of careers in construction in order to increase industry recruitment to enable the industry to keep pace with anticipated future construction demands.”

In 2023, there were approximately 5,290 women employed in Saskatchewan’s construction industry. That figure represents a decrease of 740 over the 6,030 reported in 2022. Of them, 31% worked directly in on-site construction. As a share of the total, women made up just 4% of the 38,700 tradespeople employed in the industry in 2023.

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 may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Based on current trends, Saskatchewan is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. Newcomers comprised about 9% of the provincial construction labour force in 2022. That figure is smaller than the 16% 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 Paul de Jong, President of the Progressive Contractors Association of Canada. “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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

Dennis Perrin
Prairies Director
CLAC
587-785-1836

British Columbia is projected to see near-term labour market challenges as employment demands rise to a peak in 2029

March 27, 2024

March 27, 2024 – Ottawa, ON

Construction activity contracted slightly in British Columbia in 2023 as a gain in non-residential construction investment was not enough to offset a loss in activity in the residential sector. The former has been supported in recent years by strong activity in engineering construction and the construction of industrial, commercial, and institutional buildings; the latter has seen historically high levels of activity contract under rising interest rates and consumer concerns over affordability.

The short-term outlook for the province calls for non-residential construction activity to contract as several major projects reach conclusion or pass peak activity levels. Investment is then sustained into the middle years of the forecast before contracting in the later stages. Residential-sector investment, meanwhile, is expected to see a moderate up-cycle between 2025 and 2030.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for British Columbia today. It shows that employment levels, which were historically high coming into the forecast period, will step down initially as residential and non-residential demands ease. A period of growth follows between 2025 and 2029, with employment in both sectors reaching peak levels at that time. Employment then recedes to the end of the decade, with both sectors growing by 2% above 2023 levels by 2033.

Of note, these numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“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. “It’s no surprise that market conditions are easing into the early years of our forecast period, particularly given the impact of rising interest rates on residential construction and the completion of several major non-residential projects. Having said that, the provincial market is strong, and will return to growth through the middle years of the forecast.”

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. The region experienced another year of growth in 2023 as a slight contraction in residential investment was offset by a gain in non-residential construction.

Although total employment in the Lower Mainland construction market is projected to increase continuously to 2031, residential construction employment is projected to soften after 2024, contracting by 13% by 2033, while non-residential employment will record a series of increases across the same timeline, rising by just under 8% compared to 2023 levels.

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, experienced a slight contraction in 2023 as a gain in non-residential construction was more than offset by losses in residential investment. The outlook calls for both sectors to grow to 2033, with levels cycling across the forecast period. A gain of just under 6% for the non-residential sector more than offsets a contraction of less than 2% in the residential sector.

BuildForce Canada projects that British Columbia’s construction industry will need to recruit 54,000 additional workers over the forecast period to keep pace with expansion and replacement demands. Of those, 43,200 workers – or 23% of the current construction labour force – are expected to retire during this period. Although the addition of 36,300 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 2033, the industry could face a deficit of 17,700 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, and remain below the peak levels reported in 2013. New registrations fell by 9% between 2013 and 2019, while employment increased by 12% over the same period. Although the province saw a substantial recovery in new registrations in 2022, program completions remained below pre-COVID levels.

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 2023, there were approximately 33,400 women employed in British Columbia’s construction industry. That figure was almost unchanged from 2022 levels. Of them, 29% worked directly in on-site construction. As a share of the total, women represented just 5% of the 183,400 tradespeople employed in the industry in 2023.

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 to meet anticipated labour market requirements. Based on current trends, British Columbia is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force.

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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

For local industry reaction to this latest BuildForce Canada report, please contact:

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

Jeannine Martin
President
Vancouver Regional Construction Association
604-294-3766

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

Construction employment growth in Alberta to 2033 is driven by strong non-residential demands

March 27, 2024

March 27, 2024 – Ottawa, Ontario

The components of Alberta’s construction sector saw mixed fortunes in 2023. Activity in the province’s non-residential sector grew modestly with an increase in the construction of industrial, commercial, and institutional (ICI) buildings and in the oil and gas sector. Meanwhile, residential construction demand, which had been performing at elevated levels in recent years, contracted under the pressure of rising interest rates.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for the province today. The outlook calls for a slight contraction in construction and maintenance employment in 2023, with losses in the residential sector offsetting a slight gain in non-residential employment. The sectors diverge across the forecast period. Non-residential employment is poised to chart a steady trend up to the end of the decade, rising 14% above 2023 levels by 2033. These gains are driven principally by a strong performance in the ICI buildings sector, and new gains in engineering construction after 2027.

Residential employment is poised to cycle up in the short term as interest rate pressures ease and demand for new housing returns to growth. The gains are not sustained, however, with employment projected to contract after 2027 with reductions in new-housing investment.

Total construction employment is expected to increase by 14,000 workers across the forecast period. A gain of 14% in non-residential employment more than offsets a contraction of 1% in the residential sector.

These numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“Like many provinces, Alberta is facing a shift in its population age structure,” says Bill Ferreira, Executive Director of BuildForce Canada. “Many trades across the residential and non-residential sectors are facing recruiting challenges. 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 42,500 workers, or 23% of its 2023 labour force, who are expected to retire by 2033. The province’s demographics should help to close much of that gap, with an estimated 41,100 new workers under the age of 30 projected to enter the labour force from the local population. However, when hiring needs relating to expansion are factored into the scenario, the province may be left with a recruiting gap of approximately 22,000 additional workers to be filled by 2033.

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 18% 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.

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 2023, there were approximately 36,600 women employed in Alberta’s construction industry. That figure represented a contraction of 900 workers over 2022 totals. Of them, 36% worked directly in on-site construction. As a share of the total, women made up just 7% of the 177,600 tradespeople employed in Alberta’s construction industry in 2023.

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 may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Based on current trends, Alberta is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. Currently, newcomers and more established immigrants make up about 18% 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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

Warren Singh
Executive Director
Alberta Construction Association
587-785-1222

Dennis Perrin
Prairies Director
CLAC
587-785-1836

A steady pace of growth in Manitoba’s construction sector should ease labour market pressures

March 26, 2024

March 26, 2024 – Ottawa, Ontario

Construction activity in Manitoba was almost unchanged from 2022 levels in 2023. A small gain in non-residential construction investment levels, which was propelled by growth in the industrial, commercial, and institutional (ICI) buildings sector, was offset by a slightly larger contraction in residential investment levels that was driven by rising interest rates and cooling demand for new-home construction.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for Manitoba today. The outlook calls for investment in both the residential and non-residential components to increase to 2033.

Non-residential employment is expected to rise by approximately 15% by 2033, with strong gains in ICI buildings construction. Residential employment levels, meanwhile, are projected to contract into 2032. A large loss in employment relating to new housing contracts overall employment by 6% by 2033.

Note that these numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“Although overall construction activity in Manitoba stepped back in 2023, the decline was not as pronounced as it could have been. The conclusion of work at the Keeyask Dam, which had been a big driver of non-residential employment, was more than offset by strong demand for ICI buildings,” says Bill Ferreira, Executive Director of BuildForce Canada. “The good news is, going forward, growth in the province will be consistent, meaning that we are unlikely to see large spikes in demand that strain labour markets.”

BuildForce Canada expects that approximately 9,100 workers, or about 20% of the province’s 2023 labour force, will retire by 2033. At the same time, the industry is expected to attract an estimated 10,200 new workers under the age of 30 from the local population. When combined with employment growth created by rising construction demands, the industry could be left with a shortfall of 2,900 workers that will need to be recruited from outside the local construction labour force.

“The development of skilled tradespersons in the construction industry takes years, and most often requires participation in a provincial apprenticeship program,” says Ramona Coey, Executive Director of the Mechanical Contractors Association of Manitoba. “After years of declines, it was encouraging to see a record level of new apprentice registrations in Manitoba’s 17 largest trade programs. However, with projected shortfalls, the Government of Manitoba must develop an industry-informed labour strategy promoting skilled trades as a viable career. Manitoba’s construction industry builds Manitoba and is the gateway to economic development.”

“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 2023, there were approximately 6,380 women employed in Manitoba’s construction industry. Of them, 34% worked directly in on-site construction. Women represented just 5% of the 42,300 tradespeople employed in Manitoba’s industry in 2023.

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 to meet anticipated labour market requirements. Based on current trends, Manitoba is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. Currently, newcomers and more established immigrants make up about 16% 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,” says 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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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
204-775-8664 ext. 2249

Construction demands in Ontario remain elevated through 2029

March 26, 2024

March 26, 2024 – Ottawa, Ontario

Although activity in Ontario’s residential sector slowed in 2023 in response to rising borrowing and construction costs, the province’s non-residential sector continued its steady growth trend, and shows little sign of slowing until at least the late 2020s.

BuildForce Canada published its 2024–2033 Construction and Maintenance Looking Forward report for Ontario today. The outlook calls for strong growth across both the residential and non-residential sectors to the end of the forecast period, with the former experiencing steady and strong growth in 2025 and beyond, and the latter driven to the end of the decade by work on a long list of major projects.

Activity in Ontario’s residential sector contracted in 2023 and is projected to do so again in 2024 under pressure from rising interest rates. The sector – and the new housing component in particular – returns to growth between 2025 and 2028 as wages and incomes adjust to prices before they trend down slightly to the end of the decade. Renovation expenditures, meanwhile, are projected to grow continuously through 2033. These factors bring residential employment to a peak in 2028 before it slows to the end of the forecast period.

The province’s non-residential sector, meanwhile, is projected to sustain a trend of strong growth that began in 2016 until at least 2029. Growth continues to be driven by a long list of major projects in most regions, including subway and light rapid transit construction and nuclear refurbishments in the Greater Toronto Area, light rail in the Eastern and Central regions, mining activity in the North, and electric vehicle manufacturing and automotive retooling projects in the Southwest. These projects maintain rising investment levels until at least 2027. They wind down in the latter years of the forecast as these projects reach peak activity and demands start to subside.

The outlook for the complete forecast period sees construction and maintenance employment rising to a peak in 2028. Thereafter, residential construction employment contracts slightly, while non-residential employment is largely sustained. By 2033, residential sector employment is expected to grow by 6% above 2023 levels, while non-residential employment is expected to grow by just over 10%.

These numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“Ontario’s construction and maintenance sector is poised to see significant growth into the middle years of the forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “Its challenge will be recruiting workers to address the demands created by such growth. With both the residential and non-residential sectors poised to grow well into the late 2020s, and many workers exiting the industry due to retirement, many trades and occupations could experience strained conditions. What’s more, opportunities for interregional mobility will be limited as most of the province’s regional markets will see high levels of demand.”

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 significant growth in recent years that has been driven by out-migration from the Greater Toronto Area. Residential investment levels declined in 2023 and are forecast to do so again in 2024 as interest rates cool consumer spending on new housing construction and home renovation activities. The outlook calls for growth after 2025 as builders respond to demand created by strong migration. Investment in the non-residential sector reaches a peak in 2029 with work on light-rail transit, roads, highways, and bridges, and major healthcare projects – many of which are located in Hamilton. Employment in both residential (+10%) and non-residential (+13%) construction is projected to grow across the forecast period.

Eastern Ontario’s construction market is dominated by several major projects across the engineering-construction and the industrial, commercial, and institutional building sector. Key projects currently underway include the light rail line in Ottawa, high levels of investment in roads, highways, and bridges, and an extensive portfolio of work being driven by the federal government. Later years call for the addition of major hospital projects in Ottawa and Kingston, as well as sustained activity across public-administration buildings. The residential sector stepped back from the peak volume of housing starts reported in 2021. Housing starts are projected to return to growth between 2025 and 2028, with demand strongest among multi-family units. Total construction employment is expected to reach a forecast peak in 2028.

The Greater Toronto Area’s construction market continues to be driven by a series of large-scale public-transportation, nuclear refurbishment, new hospital, and other government building-restoration projects. These combine to create strained labour market conditions across most of the region’s non-residential trades and occupations. The outlook for the region’s residential sector sees investment levels step down for the third consecutive year in 2024 as elevated interest rates curb consumer demands. The sector returns to growth in 2025 and maintains an upward trend into 2028. Construction employment in the GTA peaks in 2028 and contracts in later years. By 2033, residential employment grows by 4% above 2023 levels; non-residential employment increases by 14%.

The construction market in Northern Ontario is heavily influenced by activity in the mining and utility sectors. Several major electric-transmission projects reached completion in 2023, causing non-residential activity to decline slightly. The outlook calls for another contraction in 2024 before growth resumes between 2025 and 2027 with the start of work on key projects such as the Thunder Bay Correctional Complex and the Weeneebayko Hospital. Regional residential construction investment levels are driven by renovation activity. The segment peaked in 2021 and is projected to continue to fall across the remainder of the forecast period due to weaker job and income growth. New-housing activity is expected to return to an upcycle by 2025, in line with demand for new construction across all unit types. Construction employment is expected to trend up to 2027 before generally cycling down to the end of the forecast period.

Southwestern Ontario has been supported by a strong housing market in recent years. Although residential sector activity declined in 2023 due to rising interest rates, growth is projected to resume again between 2025 and 2028. The non-residential sector has seen steady growth since 2016 with ongoing work on key projects such as the Bruce Power nuclear refurbishment, the Gordie Howe International Bridge, and in the automotive sector. Investment levels are expected to moderate in the short term with the conclusion of some of these projects. They rise again in 2025 with the start of work on the Volkswagen EV battery plant and accelerate strongly into 2026 and 2027 as core construction commences on the Windsor Acute Care Hospital. Employment is projected to grow strongly in both sectors through 2033.

Meeting peak demands across Ontario 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 89,300 workers (19% of the current labour force) will increase overall industry hiring requirements to 141,200 over the forecast period.

Across the entire forecast period, the provincial construction industry is expected to recruit approximately 105,700 new entrants under the age of 30 from within the province. This leaves a projected gap of 35,500 workers that will need to be filled from a variety of sources outside the existing labour force to meet demands.

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 2023, Ontario’s construction industry employed approximately 77,700 women, an increase of over 7,000 from 2022 levels. Approximately 26% of these individuals worked directly in on-site construction. However, as a share of the total 445,300 tradespeople employed in onsite construction professions in Ontario, women made up just 5% of the workforce in 2023.

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 is 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 current trends, Ontario is expected to see elevated levels of immigration over the forecast period. This will make the newcomer population a key source of labour force growth. In 2022, newcomers comprised 27% of Ontario’s construction labour force, which is notably lower than the share of newcomers in the overall provincial labour force.

Increasing the participation rate of women, Indigenous People, and new Canadians will help Ontario’s construction industry address much of its future labour force needs. The rising rates of apprenticeship registration in the province are a positive trend that must be maintained to enable the industry to replace its retiring workers and to keep pace with growing construction demands.

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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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
416-476-4774

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

As construction output grows strongly in New Brunswick after 2027, the sector must contend with replacing retirees

March 25, 2024

March 25, 2024 – Ottawa, Ontario

New Brunswick’s construction sector reported an overall increase in activity in 2023 as growth in the province’s non-residential sector was enough to offset a moderate contraction in its residential sector. A more muted outlook is expected across both segments through 2026 before later years see strong advancements.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for New Brunswick today. The outlook calls for a strong rebound in the province’s non-residential sector after 2027 as work begins on the Mactaquac Hydro Dam Replacement and several healthcare projects. The province’s residential sector, meanwhile, is projected to return to growth between 2025 and 2029 as interest rates stabilize, and demand for new housing increases.

Construction employment is expected to increase across the forecast period, with the residential sector growing in nearly every year after 2024, and reaching a peak of 8% above 2023 levels by 2033. Non-residential employment follows a similar path, growing consistently after 2026, and rising to 10% above 2023 levels by 2033.

“New Brunswick’s labour force is coming off a period where market conditions were challenging,” says Bill Ferreira, Executive Director of BuildForce Canada. “While these pressures are expected to ease and mostly return to balance in the residential sector, some trades and occupations in the non-residential sector may continue to see pressures into 2028. The industry’s challenge across the forecast period will be replacing the pool of retiring 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 3,100 workers across the decade. The retirement of an expected 6,100 workers, or 21% of its 2023 labour force, over the same block of time will increase overall hiring requirements to 9,200 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 public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

The industry’s hiring requirement could be partly addressed through the recruitment of a potential 6,000 workers under the age of 30 from the local population, but based on current analysis, a gap of some 3,200 workers may emerge.

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. Although registration levels in the province’s 16 largest trade programs have declined by a greater percentage than overall trade employment, the province’s efforts to recruit new workers into the trades may be bearing fruit. Registrations rebounded strongly in 2022, driven by record or near-record levels in several programs. Completions, however, continue to remain below pre-pandemic levels.

“The construction industry remains focused on building a more diverse and inclusive labour force and to that end, our association has been leading a number of initiatives focused on enhancing the recruitment of younger workers into the trades, traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and particularly leading a large project to find innovative pathways for newcomers into the New Brunswick construction industry,” says John Ryan Morrison, Executive Director of the Construction Association of New Brunswick.

In 2023, there were approximately 3,200 women employed in New Brunswick’s construction industry. That figure was about 400 workers higher than in 2022. Of them, 27% worked on site, directly on construction projects, while the remainder worked off site, primarily in administrative and management-related occupations. Of the 26,100 tradespeople employed in the provincial industry, women made up only 3%.

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 may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Based on current trends, the province is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. As of 2022, newcomers comprised about 5% of New Brunswick’s construction labour force. That figure is notably below the share in the overall labour force.

“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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

Labour market tightness in Nova Scotia is expected to persist over the short term

March 25, 2024

March 25, 2024 – Ottawa, Ontario

Construction and maintenance activity in Nova Scotia experienced a slight contraction in 2023 as a further gain in non-residential construction was offset by a larger loss in residential-sector activity. Rising interest rates have cooled demand for new housing in the province since investment levels reached a peak in 2022. Meanwhile, activity in the non-residential sector continues to be supported by strong growth across engineering construction and in the industrial, commercial, and institutional buildings sector.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for Nova Scotia today. The outlook anticipates that residential construction activity will return to growth after 2024 as interest rates stabilize, and will continue to grow to the end of the forecast period. Non-residential activity, meanwhile, is anticipated to peak in 2025 before contracting through to 2030 as currently tracked major projects wind down.

Employment is projected to rise across the forecast period, with residential employment growing by 2% above 2023 levels by 2033, and non-residential employment increasing by 8%.

“The challenge for Nova Scotia’s construction sector will be matching labour force growth with anticipated employment demands in the short term. This is particularly the case given increasing numbers of retirements and competition from other industries for a declining share of younger workers,” says Bill Ferreira, Executive Director of BuildForce Canada. “Demands will be elevated across a number of trades and occupations in both the residential and non-residential sectors through 2025. Conditions should return to balance thereafter.”

BuildForce Canada projects that as many as 8,200 workers, or 22% of the current labour force, will retire from Nova Scotia’s construction industry by 2033. Coupled with an anticipated rise in employment demands, the industry will need to recruit as many as 10,600 workers by 2033.

These numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

Over the same period, the industry is expected to recruit a potential 7,400 new workers aged 30 or younger from the local population, leaving a gap of 3,200 workers that will need to be filled from a variety of sources outside the existing labour force.

"While developing skilled tradespeople takes years, often through provincial apprenticeships, recent increases in registrations and completions are a positive step for meeting future workforce needs in Nova Scotia's construction industry," says Duncan Williams, President and CEO of the Construction Association of Nova Scotia.

In 2023, Nova Scotia’s construction industry employed approximately 4,600 women; 450 more than in 2022. Of them, 35% worked on site, directly on construction projects. Women, however, made up just 5% of the 34,600 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 2021, 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 current trends, Nova Scotia is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. Although newcomers have nearly doubled as a share of the province’s labour force over the past decade – from 5% in 2012 to 9% in 2022, they account for just 4% of the total construction labour force.

"Nova Scotia's construction sector is committed to building a more diverse and inclusive workforce. We're actively recruiting individuals from under-represented groups, including women, Indigenous Peoples, African Nova Scotians, people with disabilities, and newcomers to Canada, to address future labour needs.  While progress is ongoing, initial efforts are showing encouraging signs,” says Trent Soholt, Executive Director of the Nova Scotia Construction Sector Council.

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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

Major project activity will create construction growth in Newfoundland and Labrador to 2033, but may exacerbate labour shortages

March 25, 2024

March 25, 2024 – Ottawa, Ontario

Construction and maintenance activity in Newfoundland and Labrador increased slightly in 2023 as a gain in non-residential construction investment more than offset a slight contraction in the provincial residential construction sector. The former has benefitted from a series of projects in engineering construction, and strong activity in industrial, commercial, and institutional buildings construction, while the latter has been curtailed by rising interest rates.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for Newfoundland and Labrador today. The outlook calls for growth to cycle moderately lower in the residential sector, while non-residential activity to grow throughout most of the decade. The start of work on the Bay du Nord project in 2028 will elevate activity to the end of the forecast period.

These factors combine to drive non-residential employment to a peak of 10% above 2023 levels by 2031, followed by a slight decline thereafter, based on currently known project activities. These factors combine to push overall employment 7% higher by 2033 over 2023 levels. Residential employment, meanwhile, is largely sustained at 2023 levels until it contracts towards the end of the forecast. When measured against 2023 levels, employment may decline by as much as 9% lower by 2033.

“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 sector should continue to grow given its relative affordability, while activity in the non-residential sector is poised to rise to a peak with work on the West White Rose offshore platform and the projected start of the Equinor Bay du Nord project.”

An aging workforce could present a significant challenge for the province’s construction industry. An estimated 5,900 workers, or 28% of its 2023 labour force, is expected to retire by 2033. Over the same period, the industry is expected to recruit 4,000 new entrants aged 30 or younger from the local population. Unless anticipated recruitment is increased, the industry could face a deficit of 2,400 workers by 2033.

Note that this analysis is based on existing known demands and does not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“Newfoundland and Labrador’s construction sector is poised to see growth in output across the BuildForce Canada scenario period, thanks to a number of planned major projects,” says Terry French, President of the Construction Labour Relations Association of Newfoundland and Labrador. “Going forward, the industry must sustain its recruiting efforts to ensure it can fill the gaps created by growth and retiring workers.”

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.

“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 and greater numbers of women and Indigenous People into the trades, as well as other groups traditionally under-represented in the construction sector. Increasing the participation rate of women, Indigenous People, and newcomers in the construction labour force will go a long way to help Newfoundland and Labrador’s construction industry address its future labour force needs,” says Darin King, Executive Director of the Building Trades of Newfoundland and Labrador.

In 2023, there were approximately 2,710 women employed in Newfoundland and Labrador’s construction industry. Of them, 29% worked on site, directly on construction projects. Of the 16,900 tradespeople employed in the industry, women made up 5% 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 current trends, the province is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. In 2022, newcomers made up about 1% of the province’s construction workforce. That figure is notably lower than the share (6%) in the overall provincial labour force.

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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

PEI’s construction sector faces short-term recruiting challenges, with conditions expected to ease after 2026

March 25, 2024

March 25, 2024 – Ottawa, Ontario

Construction activity in Prince Edward Island eased moderately in 2023 as the province’s residential construction sector declined from the peak levels of activity reached in 2022, while the non-residential sector continued a steady upward climb that began in 2021. Even with these changes, however, the province’s labour markets continue to experience recruiting challenges.

BuildForce Canada released its 2024–2033 Construction and Maintenance Looking Forward report for Prince Edward Island today. It anticipates growth in both components of the industry in the short term before levels diverge. Investment levels in the residential sector are expected to increase after 2024 and to the end of the forecast. Growth is initially driven by new housing construction and later in renovation.

After peaking in 2024, activity in the non-residential sector is projected to cycle down to 2029 as work on several major projects concludes. This trend should be viewed in context, however. The peak reported in 2024 is significantly higher than previous highs reported in 2020 and 2021.

Overall construction employment is expected to contract slightly across the forecast period. A gain of 13% above 2023 levels in residential employment will be more than offset by a contraction of just under 15% in non-residential employment.

“Although labour market conditions in PEI are strained going into our forecast period, they should return to balance in the near future, which will bring welcome relief to the industry,” says Bill Ferreira, Executive Director of BuildForce Canada. “The construction sector’s efforts to hire and train workers are bearing fruit, but these activities must be sustained for the local industry to ensure future labour force sustainability.”

The province’s construction industry will need to recruit 110 additional workers through 2033. This demand is driven largely by the expected retirement of 1,570 workers (23% of the current labour force) by 2033 and combined with a small projected contraction in the overall labour force. Much of this hiring gap will be filled by the recruitment of as many as 1,440 first-time new entrants under the age of 30 from the local population.

These numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, 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. Both scenarios are addressed in separate reports to be released by BuildForce Canada at a later date.

“The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program,” says Sam Sanderson, General Manager of the Construction Association of Prince Edward Island. “Registrations in the seven largest construction trades programs in PEI reached a record high in 2022, and we are hopeful many of these individuals will continue their apprenticeship through to completion.”

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 2023, there were approximately 550 women employed in Prince Edward Island’s construction industry. Of them, 48% worked on site, directly on construction projects. Women accounted for just 4% of the 6,500 tradespeople employed in Prince Edward Island in 2023.

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 may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Based on current trends, Prince Edward Island is expected to see elevated levels of immigration over the forecast period. This will make newcomers a key contributor to the industry’s labour force. In 2022, newcomers accounted for 4% of PEI’s total construction labour force. That figure is lower than the 10% reported 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, and was funded in part by the Government of Canada's Sectoral Workforce Solutions Program.

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

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.

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