Between October 2020 and May 2024, Canada’s construction, manufacturing, and utilities sectors faced significant labor shortages, averaging over 129,000 vacancies per year—nearly 50,000 more than pre-pandemic levels. This shortage, particularly in skilled trades, was driven by increased labor demand as global economies reopened and major projects ramped up nationwide. Demand for workers in these sectors, which peaked during the pandemic recovery period, was exacerbated by low interest rates and high housing demand. However, the number of workers available did not match the rising demand, leading to increased job vacancies and wage inflation. In 2022, this shortage forced over 60% of Canadian manufacturers to lose or decline contracts, costing the industry $13 billion. Although there was a decline in vacancies in 2023 due to cooling demand, largely because of rising interest rates and the completion of major projects, shortages persist. These challenges have highlighted the need for continued efforts in career promotion, broadening recruitment, and accelerating credential recognition for foreign workers to meet future demand. Addressing these issues is crucial to achieving the federal government’s housing goals, with the country currently projected to fall short of its target to build 22 million housing units by 2030. The ongoing labor scarcity and its impacts underscore the need for strategic workforce planning and policy changes to ensure the industry’s capacity to support Canada’s economic and infrastructure growth.

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