Canada’s one of the fastest growing provinces, Ontario, is going through a crisis of construction labor shortage, which has now peaked at 72,000 missing personnel. This shortage is threatening to derail the region’s ambitious construction and housing projects. This shortage is a story of retired employees, aspiring young workers, and a government grappling with a growing demand for housing and infrastructure.
Bulk Retirements triggering the Labor Shortage in Ontario
The primary reason behind Ontario’s construction worker shortage is a notably high retirement rate within the industry. A report reveals that a whopping 80,000 construction workers in Ontario are set to retire in the next decade. This exodus creates a vacuum, and unfortunately, the inflow of new workers isn’t solid enough to counterbalance it.
Why Construction worker Shortage is a nationwide Woes
The labor shortage isn’t limited to Ontario; it’s a nationwide issue, with each province feeling the labor crisis in its unique way. A survey highlighted that Canada’s construction sector lost 45,000 jobs in July alone, marking a 2.8% dip from the previous month. Since January 2023, construction employment has decreased by 71,000.
If this trend persists, it’s estimated that about 1,18,900 construction worker positions across Canada will be left unfilled by next decade. Benjamin Tal, Chief Economist at the Canadian Imperial Bank of Commerce (CIBC), projects that 3,00,000 workers will retire across Canada during this period.
Ontario’s Strategies and Hurdles to cope it
In a bid to navigate through this crisis, Ontario’s government has pledged an investment of $3.6 million to support three innovative projects, aiming to prepare 2,200 women and young professionals across the province for “meaningful and well-paying careers” in construction.
However, the housing crisis is escalating. The Canada Mortgage and Housing Corporation declared in June that Canada requires 5.8 million new homes to reestablish housing affordability. Even if the current pace of new construction projects persists, Canada’s housing supply is only projected to increase to 2.3 million units by 2030, falling significantly short of the goal.
Doug Ford has unveiled ambitious plans to construct 1.5 million homes in the next decade. However, the mass retirement and the resultant labor shortage pose a significant threat to make this objective come true at a required pace.
Innovative Solutions and Future Prospects for the shortage
One of its strategic moves involves enabling high school students to access training and certification programs. By allowing trade recruiters to visit high schools and introduce students to the broad opportunities and benefits in the trades, the government is hoping to sow seeds for future growth in the workforce. Moreover, the rules regarding the age at which high school students can start an apprenticeship have been relaxed to facilitate this
The province is also making strides to attract skilled foreign trade workers and has implemented initiatives to encourage women to join the construction sector. For instance, regulations have been put in place to provide more accessible and suitable bathrooms, including women-only facilities, under the Occupational Health and Safety Act.
In the words of Chavez-Gallardo (GTA’s well known journalist), all these initiatives are “a step in the right direction.” However, with a 72,000-strong construction worker shortage and an additional 80,000 retirements on the horizon, more needs to be done. Otherwise, the resultant housing shortages could inevitably drive up home costs, affecting countless individuals and families across the province.
How can Dynamic Group help?
As you see above, Canada is going to have a tough time with construction labor. If you are a professional in the Construction Industry and want to establish yourself in the ‘Maple Country’, then this will be the golden opportunity for you. Dynamic Group assists you with the complete immigration process. For the latest updates on Canadian Immigration or to explore your options for settling in Canada, contact Dynamic Group at canadasupport@dss-hr.com or call +91-11-41170411.
