Canada to announce new measures to support construction industry
Immigration Minister, Marc Miller is set to announce new measures aimed at supporting Canada’s construction industry.
The announcement, set to take place in Ottawa, is expected to address challenges faced by the sector, particularly labor shortages and housing affordability.
According to Immigration News Canada (INC), the announcement comes as Canada faces a growing need for housing, with the Canada Housing and Mortgage Corporation (CMHC) estimating a need for 3.5 million new homes by 2030 to restore affordability.
The measures, according to reports, could be a response to the ongoing shortage of skilled labor in the construction industry.
Details of the announcement are pending
Details inform that while specific details of the new measures remain unclear, the press release indicates that Minister Miller will focus on initiatives to support individuals and firms in the construction industry.
- Possible updates include measures to assist out-of-status construction workers or a follow-up on recent changes to Canada’s Express Entry system.
- The Immigration, Refugees and Citizenship Canada (IRCC) recently added 19 new skilled trades to the list of occupations eligible for Express Entry category-based draws.
- With this update, there are now 25 trades eligible, most of which are related to construction. These trades include roles such as roofers, electricians, plumbers, and carpenters, which are essential for addressing the country’s labor needs in construction.
The construction workforce, according to reports, is equally large, with an estimated 1.2 million workers in 2023, a number that has doubled since 1997.
This workforce, as stated, is essential in meeting the growing demands for residential and non-residential construction. However, challenges such as labor shortages and economic fluctuations continue to affect the industry.
Labor shortages and demand for skilled trades
Reports inform that the labor shortages in the construction industry remain a major concern, with BuildForce Canada estimating the need to recruit over 309,000 new workers by 2029.
This, according to reports, is driven by a projected retirement of over 257,000 workers and an anticipated growth of 50,200 jobs.
- Skilled trades, such as electricians, carpenters, and plumbers, are crucial for addressing these shortages. These trades require specialized training and expertise, making recruitment efforts even more important.
- The construction industry also faces demographic challenges, with an aging workforce and low participation rates among younger workers.
Reports indicate a vacancy rate of 5.1% in construction, which is higher than the national average. This underscores the urgent need to address labor shortages and attract skilled workers to the sector.
Immigrant contribution to the construction workforce
Immigrants, according to INC, play a significant role in Canada’s construction industry, with an estimated 22% of the workforce coming from immigrant backgrounds.
- According to data from the Statistics Canada Census, immigrants make up varying percentages of the workforce in specific construction roles. For instance, 20% of roofers and shinglers are immigrants, while 16% of electricians and 15% of carpenters are also immigrants.
- Other roles with a notable immigrant presence include general contractors (23%), architects (41%), and civil engineers (40%).
- These statistics highlight the importance of immigration in meeting the labor needs of Canada’s construction sector, especially in light of ongoing shortages.
The Canadian government’s efforts to support the construction industry come at a critical time. As the country grapples with housing shortages and a growing demand for skilled labor, these measures look to provide relief to construction firms and workers.
Minister Miller’s upcoming announcement is expected to provide more details on the steps the government is taking to ensure the sector remains capable of meeting future demands.
For now, industry stakeholders will need to stay tuned for further updates on the government’s plans to support the sector and address the ongoing labor challenges facing Canada’s construction industry.
