Construction demand outpaces labour growth

Foreign workers might be needed to fill vacancies

The demand for construction workers in most provinces will exceed provincial labour force supplies until at least 2010, according to the latest forecast from the Construction Sector Council.

Some of the biggest discrepancies will be in Alberta, where the need for construction workers will grow by 20 per cent compared to a provincial labour growth of 12 per cent, and Saskatchewan, where the need for construction workers will grow by 16 per cent compared to a three-per-cent increase in provincial labour growth.

“It’s critical that we have qualified people to do the work so that not only are the structures built properly, but they’re safe and that we have our workers working in a safe environment,” said Rosemary Sparks, senior director of planning and development at the sector council.

New Canadians and workers currently in other countries could be a source of qualified tradespeople, said Sparks. Governments may have to change regulations to make it easier for employers to bring in foreign workers on a temporary basis to meet the demand, she said.

“There may be some pools of labour in other countries where they are already qualified so we need to be able to bring those individuals into the country,” she said.

Sectors experiencing a downturn, such as manufacturing, could also be a source of qualified tradespeople.

The report states Ontario is the one province where provincial labour force growth, as well as projected declines in the manufacturing sector, will balance out the need for construction workers. As such, other labour-strapped provinces might turn to Ontario for workers.

The report, Construction Looking Forward: National summary of labour requirements from 2007 to 2015, predicts the following markets will attract workers from related or adjacent markets over the next few years: Alberta oil sands projects until 2009; all sectors in British Columbia in 2007 and 2008; industrial building in Nova Scotia and New Brunswick in 2007; and engineering projects in Manitoba until 2009.

The sector council report predicts the industry will see a dramatic shift from residential projects to non-residential projects (including industrial, engineering and commercial building). This shift will be most significant in Saskatchewan, Manitoba, Alberta and British Columbia, which will see 60-per-cent growth in industrial projects.

This shift will create a greater demand for specialized trades, such as ironworkers, boilermakers, construction millwrights, crane operators and specialty welders.

In Atlantic Canada, labour growth demand is 2.7 per cent in Newfoundland and Labrador, 3.0 per cent in Prince Edward Island, 4.3 per cent in Nova Scotia and 20 per cent in New Brunswick. However, these numbers represent the region’s base-case scenario.

The eastern provinces completed a second forecast, which looked at projects currently in the planning stages that may or may not come to fruition in the next decade.

“We’re looking at almost a 25- to 30-per-cent demand over the base case,” said Carol MacCulloch, president of the Construction Association of Nova Scotia.

But even without the prospective projects, Eastern Canada has another challenge to overcome.

“In our case, replacement demand is really big,” said MacCulloch. “The real challenge for Atlantic Canada is that we’re just older.”

While the sector council’s prediction of a construction slowdown after 2010 will cause a loss of jobs in most Atlantic provinces (except Nova Scotia) and a slowdown in new job creation in other provinces, the need to replace retiring workers in all of the eastern provinces will outpace the number of workers freed up as projects come to a close (see sidebar on page 2).

In all other provinces, the need to replace retiring workers and to fill new jobs will mean an increasing demand for new labour.

Replacing retiring workers presents a big training challenge because it takes several years to get someone up to the required skill level, said MacCulloch.

Governments, industry and schools all need to work to provide training and on-the-job experience for young people and other under-represented populations such as women and Aboriginals, said Sparks at the Construction Sector Council.

Recent efforts on the part of all stakeholders have paid off and registrations in apprenticeship programs are increasing across the country. However, the report found completion rates have remained about the same.

“We are in a busy work time. It would be easy to be drawn away from completing your apprenticeship to work and earn a living. That lure of the work itself is one of the factors that might be impacting completion rates,” said Sparks.

In an effort to increase completion, the Construction Association of Nova Scotia is working with the Nova Scotia Community College apprenticeship division and industry to develop a co-op education-type model for apprentices, said MacCulloch.

This way, when students graduate from the college program, they’ll be able to write their journeyperson papers immediately.




Help wanted

Retirements drive shortages

A look at how many new construction tradespeople will be needed by 2015 to keep pace with demand

Number of retirees Job creationTotal
Newfoundland and Labrador2,869-1,1351,734
Prince Edward Island928-233695
Nova Scotia5,0211,1676,188
New Brunswick4,689-604,629
Ontario55,05935,03990,098
Manitoba4,5724,1618,733
Saskatchewan4,2153,5727,787
Alberta20,03023,35143,381
British Columbia24,47012,65037,120


Figures for Quebec and the territories are not available.

Source: Construction Sector Council




Case study

Tapping, growing local talent

Last year Syncrude, an oil mining company in Fort McMurray, Alta., had nearly 45,000 applications for 750 positions.

As the company gears up to fill another 1,000 positions this year, the problem isn’t getting enough applicants — it’s ensuring they have the right skills, they’ll stay with the company and there’s a pipeline of future talent, said Alain Moore, a spokesperson for Syncrude.

“One of our key focuses is to develop the capacity locally. We’re five hours north of Edmonton and living in the north has unique characteristics,” said Moore.

Locals know what to expect in a northern community and they have family ties so retention rates tend to be higher, he said.

A large proportion of the local community are Aboriginal people. Syncrude has 32 apprentices from the Alberta Aboriginal Apprenticeship program and has a recruiter dedicated to the Aboriginal community.

“That person goes beyond just taking resumés and encouraging people to apply to Syncrude. That person also goes into the Aboriginal communities, teaching young people what we’re looking for in future employees and helping them set goals,” said Moore.

For Syncrude, it’s never too early to build the talent pipeline. The company supports daycares in First Nations communities and in Fort McMurray.

“We believe that looking forward, a lot of those young children in local daycare programs, easily within 15 years, could be our employees, so we want to do our part to help them get started right,” said Moore.

The company also supports programs at the elementary, secondary and post-secondary level that introduce students to science and trades in the classroom and bring them on-site as apprentices.

To read the full story, login below.

Not a subscriber?

Start your subscription today!