Canada's Skilled Labour Shortage: How to Find and Keep Top Talent

Canada’s skilled labour shortage is a major challenge for contractors nationwide. With roughly 700,000 trades workers expected to retire by 2028 and not enough new talent entering the industry, many projects are being delayed and jobs are going unfilled. BuildForce Canada reports the construction sector needs 351,800 new hires by 2033 to replace retirees and meet demand, especially in Ontario, Alberta, and British Columbia, meaning contractors are competing harder than ever to attract and keep skilled workers.

This labour crunch makes early spring planning essential. Contractors should encourage homeowners to book renovations well in advance, before the peak season hits. Early scheduling helps secure crews and materials, reduces the risk of delays, and protects project timelines when demand is at its highest.

Despite the shortage, contractors who adapt their recruitment, culture, and retention strategies can still build strong teams and succeed. By promoting early bookings and planning ahead, companies can stabilize their schedules, reduce stress during busy months, and maintain steady growth in today’s competitive market.

Building a Workforce That Lasts: Smart Solutions for a Tight Labour Market

Source: RenoQuotes

1. Build Relationships with Local Trade Schools

One of the most effective ways to anticipate labour needs and secure talent ahead of the busy season is to build strong relationships with local trade schools and apprenticeship programs. Institutions like SAIT (Southern Alberta Institute of Technology) in Calgary, BCIT (British Columbia Institute of Technology) in Vancouver, and Centennial College in Toronto are training the next generation of skilled workers.

• Attend career fairs and host site tours early in the year to introduce students to your company, upcoming projects, and future employment opportunities.

• Offer apprenticeships, internships, or co-op placements—hands-on experience is invaluable, and these programs help create a ready-to-hire workforce as demand increases.

• Collaborate with instructors to align training with real jobsite needs or guest lecture on current industry trends, reinforcing the value of early career planning and long-term opportunities with your company.

• Track success using simple metrics such as apprentice-to-hire conversion rates or training completion rates to refine your approach from season to season.

By staying visible and engaged well before peak demand, you position your business as a first-choice employer for graduates and apprentices while strengthening your workforce planning.

2. Create a Work Culture People Want to Join (and Stay For)

The skilled labour shortage isn’t just about numbers—it’s about competition. With more job openings than qualified candidates, workers have options. That means your company culture matters more than ever.

• Prioritize safety and respect on every job site.

• Offer flexible scheduling or accommodations where possible, recognizing that work-life balance is a growing priority.

• Recognize and reward achievements, whether through formal programs or simple public acknowledgment.

• Invest in professional development: support further training, certifications, and opportunities for advancement.

• Encourage inclusion and diversity by actively recruiting women, Indigenous workers, and newcomers—groups that remain under-represented in the skilled trades.

A positive, supportive workplace not only attracts new hires but also keeps your best people from looking elsewhere. According to a recent CFIB survey, issues like lack of motivation and weak problem-solving skills are common pain points for employers. Building a culture that values growth, mentorship, and engagement can help address these challenges head-on.

3. Offer Competitive Benefits—Beyond the Hourly Wage

Wages are rising, but salary alone isn’t always enough to win top talent—especially when competing with larger firms or major infrastructure projects. Contractors who think creatively about compensation and benefits can stand out.

• Provide health and dental benefits, retirement savings plans, or profit-sharing.

• Offer paid training, tool allowances, or travel stipends.

• Consider performance bonuses tied to safety, productivity, or customer satisfaction.

• Support mental health and well-being through employee assistance programs or wellness initiatives.

• Communicate these benefits clearly in job postings and during interviews.

Small gestures can make a big difference, especially for workers weighing multiple job offers. Remember: benefits that improve quality of life, stability, and future prospects are highly valued by today’s workforce.

4. Leverage Labour Mobility and Reduce Barriers

Don’t limit your search to your immediate region. Many provinces face similar shortages, but inconsistent licensing and certification rules can restrict worker mobility.

• Familiarize yourself with Red Seal Program designations, which allow qualified tradespeople to work across provinces.

• Be proactive in helping candidates with re-certification paperwork or application fees.

• Advocate for mutual recognition of credentials within your industry associations.

• Support immigrant and internationally trained tradespeople by guiding them through provincial credential assessments.

Stay informed about interprovincial agreements and labour mobility frameworks—doing so can help you access a wider talent pool and fill gaps faster.

5. Invest in Training and Upskilling

The skilled labour shortage is partly a skills gap. Many candidates are eager but lack specific qualifications. By investing in on-the-job training, mentorship, and upskilling, you can develop the talent you need from within.

• Partner with government programs or industry associations offering training incentives or wage subsidies—such as the Union Training and Innovation Program (UTIP) or Apprenticeship Service funding.

• Establish clear career pathways so employees see a future with your company.

• Pair apprentices with experienced journeypersons for mentorship, improving retention and skill transfer.

• Measure progress with metrics like certification rates, training completion, or turnover reduction.

This approach not only fills immediate gaps but also builds loyalty and reduces turnover.

6. Focus on Immigration and Integration of Foreign Workers

With local labour no longer able to meet demand, immigration and recruiting foreign workers have become essential tools for entrepreneurs. Government policies now make it easier to access talent from abroad, especially in sectors facing shortages like construction, healthcare, and agriculture. To fully benefit, it’s not enough to recruit internationally; you must also ensure these new employees are successfully integrated.

• Work with specialized agencies or government programs to simplify administrative procedures and speed up the arrival of foreign workers.

• Plan for support from day one: help with finding housing, assistance with immigration processes, and access to resources for language training or cultural integration.

• Recognize skills acquired abroad and offer additional training if needed to help obtain local certifications.

• Encourage diverse teams and raise awareness about diversity to create an inclusive workplace where everyone feels valued.

• Involve newcomers in company life, whether through mentoring, participation on committees, or social activities.

By focusing on immigration and integration, you broaden your recruitment pool and strengthen your company’s resilience. Foreign workers bring skills, perspectives, and motivation that can become a strategic asset—provided you offer them a welcoming environment and long-term growth opportunities.

The Economic and Sectoral Impact of Canada’s Skilled Labour Shortage

Source: RenoQuotes

Canada’s skilled labour shortage is more than an HR challenge—it’s a major economic issue affecting nearly every sector. From construction to hospitality, the lack of qualified tradespeople is driving up costs, causing delays, and putting pressure on businesses and consumers alike.

Rising Costs and Delays

In construction, shortages of carpenters, electricians, and HVAC technicians mean frequent delays and increased costs for projects. This reduces the supply of new housing—contributing to Canada’s ongoing housing crisis—and slows the completion of critical infrastructure like roads and transit.

Small Businesses Under Strain

Small and medium-sized businesses are especially hard hit. Unable to match the wages and benefits of larger firms, many SMEs struggle to fill skilled positions, limiting their growth and ability to fulfill contracts. According to BuildForce Canada, the construction industry alone risks losing billions in productivity and project opportunities each year due to labour shortages.

Higher Prices for Canadians

Labour shortages lead to higher prices for consumers. Service fees for home repairs have surged, and restaurants have raised menu prices to cover increased labour and other rising costs. These impacts are felt daily by Canadians across the country.

Productivity and Competitiveness at Risk

With businesses paying more for labour but not seeing matching gains in productivity, Canada’s competitiveness suffers. Persistent shortages threaten to erode economic growth and make it harder for Canadian firms to compete globally.

A Nationwide Challenge

Ultimately, the skilled labour shortage affects everyone—through higher costs, delayed projects, and slower economic growth. Addressing it is essential for Canada’s long-term prosperity.

Conclusion: Turning Crisis into Opportunity

The skilled labour shortage is the #1 problem facing contractors nationwide, but it’s also a call to action. By building strong relationships with trade schools, fostering a standout workplace culture, offering creative benefits, embracing labour mobility, and investing in training, you can attract—and keep—the great talent your business needs to succeed.

In a market where workers have choices, make sure your company is the one they choose—and the one they choose to stay with.

FAQ

What are the latest trends in labour shortages across Canada?

Unemployment went up in most of 2025, reaching 6.8% across the country by December, which is higher than in previous years. This happened because hiring slowed down, the population grew, and there were trade issues like U.S. tariffs. There were also fewer job openings—down 18.1% compared to the year before in early 2025 and down 10.2% by the third quarter.

There were also fewer long-term job vacancies (27.1% compared to 31.6% in 2024), meaning it became easier for employers to fill jobs. Some areas, like tech (with 3.3% unemployment in May 2025), manufacturing, and jobs for young people, still have skill shortages. However, things got better late in the year, with 181,000 more people employed from August to November.

How have job vacancies and employment patterns changed due to labour shortages?

The unemployment-to-job-vacancy ratio has gotten better since 2022 (for example, it was 1.4 across the country), meaning there are fewer open jobs as more people join the workforce. In early 2025, about 18.1% of people looking for work found jobs, which is lower than before the pandemic, but hiring increased at the end of the year.

Full-time jobs grew a little (+0.7% over the year to December 2025), while part-time jobs grew faster (+2.6%). Employers feel less pressure to raise wages quickly, with differences in each region—Ontario’s unemployment rate reached 7.9%—but there are still shortages in trades, healthcare, and environmental jobs.