Canada’s construction industry continues to be positive, according to the Royal Institution of Chartered Surveyors (RICS) / Canadian Institute of Quantity Surveyors Construction Monitor Q3 2024.
The headline Construction Sentiment Index (CSI) gave a reading of +20 per cent (net balance), which indicates a positive trend which has continued since Q1 2024. This trend is found throughout the sector; however, infrastructure is ahead of the pack (+29 per cent).
A recurrent theme of the RICS-CIQS Canada Construction Monitor is the difficulty in sourcing skilled labour. It is the most cited obstacle to construction activity with almost two-thirds of respondents drawing attention to the issue.
The most acute shortage related by respondents regards skilled tradespeople of all types and Quantity Surveyors, however, all professions are in short supply, including unskilled labour.
Respondents in Nova Scotia and Ontario also noted an aging workforce impacting the sector and a lack of young people entering the profession. Survey participants in Alberta also noted that some professionals are choosing to leave the country for construction jobs in the U.S.
Canadians were asked if they are witnessing increased recruitment from overseas, and whether government policies to open the jobs market are having an effect. A total of 70 per cent said yes to the first question and just over 50 per cent said yes to the second. This indicates that most professionals are noticing an influx of professionals from outside the country, and roughly half believe government policies are impacting the sector.
In terms of credit conditions and costs, 125 basis points have been shaved from the Bank of Canada’s main policy rate, which creates the perception among respondents that more monetary loosening is coming.
Respondents in the Yukon Territory said that the region has few contractors, making contract processes “uncompetitive” and “more expensive than initial cost estimates.”
According to the findings, when looking to the future, all key forward-looking metrics are positive. This is especially true regarding the infrastructure sector, which is mirroring the current quarterly sentiment.
Overall, Canada’s construction industry remains in positive growth, however more work will be required to fill labour supply shortages, and also get more young Canadians trained to work in the built environment.
“The ongoing skilled worker shortage continues to remain one of the top obstacles for significant growth in Canada’s construction industry. This is a problem that requires urgent solutions, especially considering reports estimating that nine million workers will reach retirement age and potentially leave the workforce by 2030,” said Sheila Lennon, CAE, chief executive officer at CIQS.
“The Federal Government’s Express Entry program – Federal Skilled Worker, Federal Skilled Trades Class, and Canadian Experience Class, offers potential pathways for people to immigrate to Canada under the Economic Immigration classification of Canada’s Immigration Levels Plan for 2025-2027. With more than half of the planned admissions in the Economic Immigration class, this plan could play a key role in solving the skilled worker shortage.”
