TORONTO — The construction industry is short tens of thousands of workers, and experts say a coming wave of retirements could make the problem worse even as Canada is millions of homes behind what's needed to reach housing affordability this decade.
The Canada Mortgage and Housing Corporation forecasts a need for 3.5 million more homes by 2030 than the country is currently on track to build. For more than two decades, Lee said there’s been a shift away from directing younger generations into skilled trades, and toward what he calls the “knowledge economy.” That comes alongside a growing shift on the other end of the labour force, where around a fifth of the industry is set to retire in the coming decade, he said.
However, the labour shortage has also given workers in the industry more bargaining power amid the rising cost of living, and pay is reflecting that. A recent note from RBC said wages in the sector grew 9.4 per cent in 2022, nearly double other industries. Just as there are multiple factors contributing to the housing supply gap, there are multiple ways to address the labour shortage in construction, said ab Iorweth: “There’s no silver bullet.”