Canada's construction industry projected to need 380,500 workers by 2034: report

“A projected return to growth in the residential construction sector in 2025 will create further demands on the construction labour force into the late 2020s,” says Bill Ferreira, executive director of BuildForce Canada.

“Growth is expected to be slow initially as buyers return to the market and excess supply is absorbed, but later years see growth accelerate in response to pent-up demands. Meanwhile, market conditions for most trades and occupations in the non-residential sector are expected to remain strained in the near term, given the volume of projects underway across the country.”

In 2020, BuildForce Canada projected that Canada’s construction industry will need to hire more than 307,000 workers by 2029.

Who should construction employers hire?

Based on historical trends, a large portion of the staffing need could be met by recruiting approximately 272,200 new entrant workers under the age of 30 over the next 10 years, the report suggests.

However, even with these recruitment levels, the industry may still face a shortfall of as many as 108,300 workers by 2034.

To address this, BuildForce Canada urges employers to intensify efforts to recruit talent from under-represented groups, including:

• Women: In 2023, approximately 217,700 women were employed in Canada’s construction sector—an increase of nearly 7,000 from the previous year. Of this group, 29% worked directly in on-site construction. Still, women accounted for only 5% of the 1.21 million tradespeople in the industry.
• Indigenous Peoples: Currently representing 5.2% of the construction workforce—above their national labour force share—greater engagement with Indigenous communities remains necessary.
• Newcomers to Canada: Comprising 20% of the construction workforce, newcomers still fall short of their 27% representation in the broader national labour force. With Canada expected to welcome 4.4 million immigrants between 2025 and 2034, this group holds significant potential.

“Increasing the participation rate of women, Indigenous People, and newcomers will be critical in helping Canada’s construction industry address its future labour force needs,” says BuildForce Canada.

In September 2024, Ontario announced it is investing $26 million to build a new training centre at Laborers' International Union of North America (LiUNA) 183’s skilled trades training campus in Vaughan. The investment will help LiUNA 183 train nearly 50,000 additional construction workers.

How do you address the labour shortage in construction?

Stevan Grkinic, head of technical at MIDFIX, says the construction employers can address the labour shortage by focusing on the following:

1. Retaining workers – “Companies must look after existing employees by offering attractive company benefits, wellbeing policies and remuneration packages to dissuade them from moving to a competitor.”
2. Engaging the youth – “Employers can attract a younger workforce by offering flexibility, a better work-life balance, job sharing or part-time hours. More apprenticeships, traineeships and upskilling will attract and retain a younger workforce.”
3. Challenging negative perceptions about construction – “Employers must make some noise about the industry’s digital innovation, quality engineering, building design and new technology, and the benefits of a highly skilled career.”
4. Resorting to strategic recruitment – “Construction employers must embrace digital tools that manage and streamline the recruitment process. Using specialist construction recruiters, rather than generic agencies, will also help construction employers to target their recruitment processes more successfully.”

Overall, Canada is projected to see 8.1 million job openings between 2024 and 2033, with retirements accounting for nearly 70% of new vacancies, according to Employment and Social Development Canada (ESDC). 

In British Columbia alone, there will be 1.12 million job openings between 2024 and 2034, according to a report from WorkBC.