Construction Industry in Canada needs more construction workers

Author: Admin | | Categories: Work in Canada

Construction Industry in Canada

Despite exceeding immigration targets and expecting an influx of skilled tradespeople, Construction Industry in Canada continues to lose thousands of jobs. In July, the sector saw a 2.8% drop, with 45,000 jobs lost. This trend is increasing, with construction experiencing more job losses than other major sectors. The problem is worsened by an upcoming wave of retirements and a housing shortage of millions. 

Canada Mortgage and Housing Corp forecast 3.5 million more homes to be built by 2030, but the number of new homes is declining. Immigration Minister Marc Miller believes new immigrants are necessary to solve the housing crisis and intends to maintain or increase immigration targets.


Construction Industry in Canada and needs of construction workers

The construction industry in Canada plays a vital role in the economy of Canada. For example, the construction of new housing and commercial sectors is critical to meeting the demands of an ever-increasing urban population. The construction industry is a key economic driver for Canada and a measure of the country’s economic prosperity. 

In 2022, the Canadian construction industry was worth $355.9 billion. During the period 2024-2027, the market is expected to grow at a rate greater than 1%. The construction industry’s output will be strengthened by developments in the industrial, energy, and transportation sectors throughout the projection period. 

The construction industry is short of tens of thousands of workers, and analysts predict that a wave of retirements could worsen the situation.

Meanwhile, Canada is millions of homes short of reaching housing affordability this decade.

According to CIBC deputy chief economist Benjamin Tal in a recent report, the construction job vacancy rate is at an all-time high, with over 80,000 vacancies in the industry.

These vacancies, which hike building costs and limit productivity, occur at a time when the residential construction industry is under pressure to satisfy the needs of an expanding population. 

According to a spokesperson for newly-appointed Immigration Minister Marc Miller, one of his top goals and a primary purpose of the government’s immigration targets is to address Canada’s labor shortages.

“Strategies such as Express Entry and the historic Immigration Levels Plan, which largely comprises economic migrants, are a great asset to our nation because they will directly contribute to addressing the ongoing labor shortage.” This is especially true in the housing sector,” Bahoz Dara Aziz, the immigration minister’s press secretary, told Global News.

“With provinces like Ontario needing 100,000 workers to meet their housing demands,” the spokesperson continued, “it is clear that immigration will play a strong role in creating more homes for Canadians.”

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