The most recent Labour Force Survey data from Statistics Canada, for January 2025, reports stronger growth in construction employment and labour force, with the youngest demographic cohort (i.e., workers aged 15 to 24 years) accounting for a significant portion of the gains.
Among all demographics, construction unemployment rose over the 12-month period ending in January 2025. Growth in the industry’s labour force (+86,100 workers; 5.3%) outpaced an increase in employment (+61,000 workers; 4.1%). As a result, the industry’s unemployment rate rose by one percentage point – from 8.3% to 9.3%. Despite this rise, construction unemployment rates remain well below the two-year (12%) and five-year (15%) averages for the month of January.
Worth noting is the seasonal nature of some aspects of the construction sector, such as civil-engineering construction and homebuilding, both of which pause, or dramatically slow, construction activity during the winter months.
Employment activity was most notable among young workers, where unemployment rates decreased by one percentage point – from 15% to 14% – over the 12-month period. Both other cohorts saw unemployment rates rise by 1.3 percentage points.
Among all men in the industry, unemployment rose by one percentage point – from 9.0% to 10% – over the year. Employment growth was greatest in absolute and relative terms among men aged 15 to 24 years, where the addition of 21,000 workers accounted for almost half of the total employment growth of 50,500 workers over the previous year.
Among women, the unemployment rate increased by 1.2 percentage points over the past 12 months from 4% in January 2024 to 5.2% in the same month in 2025. A drop in the unemployment rate among the core cohort of those aged 25 to 54 years (-0.4 percentage points) was more than offset by a jump of 6.5 percentage points among the cohort of workers aged 55 years and older and an increase of 1.2 percentage points among the youngest cohort aged 15 to 24 years.
A closer look at key industry metrics suggests the growth in employment in January may be driven by recovering demand for residential construction, signaled by a rising number and value of residential permits in December 2024.
For the 12-month period ending in December 2024, building permits data showed strong residential increases across all provinces, except New Brunswick. However, it is not just the residential sector that is showing signs of growth; the number of building permits was also up for commercial and institutional buildings in December.
Looking across the country, several provinces reported employment increases over the past 12 months. Leading the way in absolute terms were British Columbia (+24,400 workers; +11%), Quebec (+23,600; 8%), and Alberta (+20,300; 9%). Prince Edward Island (+22%) and Saskatchewan (+17%) also reported notable percentage increases.
Only Manitoba (-7,400 workers; -12%), New Brunswick (-4,300; -13%), Ontario (-3,900; -1%), and Newfoundland and Labrador (-3,100; -17%) reported employment losses over the past 12 months.
Finally, construction unemployment rates in January 2025 varied among the provinces from a low of 5.5% in British Columbia to a high of 32% in Newfoundland and Labrador. Three provinces reported rates of 10% or more: Manitoba, New Brunswick, and Newfoundland and Labrador.
Construction Key Indicators
