Canadian Construction Companies Are Facing A Shortage of Skilled Tradespeople
Belynda de Beurs
CEO at Roadmap to Profit | Construction Accounting | Turnaround Management ? Helping builders and trades achieve consistent and predictable higher profits Services
Canada is currently facing a significant shortage of skilled tradespeople, affecting sectors like construction and manufacturing across all provinces yet unemployment rates are at their highest.
The shortage is also driven by several factors:
Demographic Shifts: A large portion of Canada's skilled trades workforce is nearing retirement age, particularly in energy and construction sectors. Over the next decade, Canada will need to recruit approximately 309,000 new workers to replace retirees and meet growing demand.
Provincial Variations: The severity of the skilled trades shortage varies by province. For example:?
British Columbia?and?Quebec?are experiencing the tightest labour markets with about 1 unemployed?person per job vacancy.
Alberta?and?Saskatchewan?are also feeling the pinch, though the ratio of job vacancies is slightly higher, at around 2 job seekers per vacancy.
Challenges with Training and Perception: A lack of training opportunities and misconceptions about skilled trades careers contribute to the shortage. Many young people opt for university education rather than trades, partly because of a perception that trades are lower-paying, which isn't always true. Additionally, apprenticeships are difficult to secure, further reducing the pipeline of new talent entering the trades.?
The next generations are looking for flex-schedules that support work-life balance. They want to incorporate technology in their role to reduce manual processes. They support companies that have “green” initiatives and provide a safe working environment.?
To combat the shortage, various provinces are investing heavily in training programs. For instance, Ontario has allocated $224 million to upgrade training centres, while Alberta is focusing on increasing diversity in trades by reaching out to underrepresented groups.?
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The skilled trades shortage in Canada is a complex issue that requires both short-term solutions, like immigrant integration and upskilling programs, and long-term cultural shifts in how these professions are viewed.
In our next article we will provide insights into the best ways to attract and retain skilled trades people.?
Sources:
Belynda De Beurs,?CPA
Owner, RoadMap to Profit
P.S. Roadmap to Profit provides Fractional CFO services. We can assist you, as an owner or manager of your construction company, in determining ways to attract and retain the best trades people. Give us a call (403) 992-7261, send us an email to [email protected] or simply book an appointment https://calendly.com/belyndartp/consultation? to discuss your specific needs.?