Labor Shortages in Canadian Construction: Key Risks and Solutions
Canada is facing a serious construction labor shortage. In 2023, CBC reported tens of thousands of unfilled jobs, including 20,000 in Ontario. From June to July 2024, the industry lost 45,000 jobs because of more workers leaving than entering.
With 20% of the workforce set to retire in the next decade, including 80,000 retirees in Ontario and 38,000 in British Columbia, the shortage is expected to worsen. As infrastructure and housing projects grow, the need for skilled workers is urgent.
This blog will guide you in tackling the skilled trades shortage and working with a Canada job recruitment agency to find the right talent.
Key Risks of Labor Shortage in Construction
A shortage of trade workers can cause several problems, including delays, higher costs, and safety issues. Let’s look at each of them below and how they can impact your projects.
● Project delays Labor shortages can significantly extend project timelines and lead to missed deadlines. With fewer workers available, tasks take longer to complete, and projects are often delayed. It impacts the overall schedule and client satisfaction, potentially damaging your company’s reputation.
● Increased project costs
As labor supply becomes limited, the cost of skilled workers rises. The laws of supply and demand push up wages, which increases overall project costs. These rising expenses can strain your budget and reduce profit margins.
● Compromised quality and safety
The quality of work can suffer with fewer experienced workers in the field. Skilled labor is essential for maintaining high standards of craftsmanship. When the workforce is stretched thin, you might have no choice but to cut corners. It can also lead to safety risks, as inexperienced workers may not adhere to proper protocols.
● Difficulty in scaling projects
Limited labor availability makes it difficult to scale up operations. Whether expanding your workforce for a large project or handling multiple projects simultaneously, a lack of skilled workers can prevent your company from taking on more work, limiting growth opportunities.
● Negative effects on economic growth
Delays in building infrastructure and housing projects affect individual businesses and national growth. Economic progress slows down when construction projects are postponed or halted, leading to a negative ripple effect on other sectors.
Strategies to Overcome Labor Shortages
Don’t let the impact of labor shortages affect your business. Here are some practical tips for finding the right people for skilled trade roles.
● Invest in workforce development
Training your current workers is a great way to deal with labor shortages. Offering programs, certifications, and apprenticeships helps them learn new skills and move into higher roles.
For example, you can provide safety training or project management courses so your workers can take on more responsibilities. Investing in your team’s growth also boosts employee morale and loyalty.
● Improve recruitment and retention
Attracting and keeping skilled workers is key during labor shortages. So, prioritize offering good pay, benefits, and a healthy work-life balance to help your company stand out. Flexible hours or extra vacation days can make workers feel valued. Giving clear paths for career growth can also keep your team motivated and reduce turnover.
● Collaborate with educational institutions
There’s no one more eager to accept lucrative jobs than students and fresh graduates. Partnering with colleges and trade schools is a great way to solve labor shortages in the long run. Consider offering scholarships, internships, or job fairs to encourage students to consider careers in construction.
For example, working with a local trade school to create a construction management program gives students a clear path into the industry while helping your business find future talent. You can also set up co-op programs to create a steady flow of skilled graduates ready to work.
● Use international recruitment agencies
Partnering with international recruitment agencies can help you bring in qualified foreign workers to fill the gaps in your workforce. These agencies know how to find qualified candidates quickly, making the hiring process more manageable.
You can work with an agency that specializes in recruiting workers from places like the Philippines, where many experienced construction workers are seeking jobs abroad. This way, you can keep your projects on track and meet labor needs despite local talent shortages.
How Staffhouse International Resources Can Help
Staffhouse International Resources can bring you, skilled trade workers, from around the world. We have reliable sources of skilled workers, like those from the Philippines, allowing us to provide employees who fit your specific needs.
Beyond that, we take care of all the logistics, including visa processing and relocation, so you can focus on running your projects. Working with us helps you fill positions faster, keep your projects on track, and overcome labor market challenges.
Securing the Future of Your Projects
Labor shortages in the construction industry pose significant risks, from project delays to increased costs. That’s why planning is essential to overcome these challenges.
You can find competent workers and stay on schedule by investing in training, improving hiring, and partnering with a trusted agency like Staffhouse. Act now to prevent delays and ensure the success of your future projects.
Overcome Labor Shortages in Canadian Construction – Partner with Staffhouse International
To address the growing labor shortages in Canada’s construction industry, partnering with a trusted recruitment agency like Staffhouse is key. We ensure your workforce has the right skills for your project, no matter its size.
Beyond construction, Staffhouse has successfully deployed workers in the healthcare and hospitality sectors. This variety proves our ability to cater to diverse industry needs in any country.
We also have a strong presence in Canada—we have established partnerships with Canadian employers, including those tied directly to the governments of New Brunswick and Manitoba.
If your construction company is facing labor gaps, reach out to us today for tailored workforce solutions that will help you keep projects on track.
Visit our jobs page to explore current job openings in Canada for OFWs. Contact us now to discuss how we can assist with your recruitment needs!
