In this series, BuildForce Canada presents and examines some of the key data points emerging from the past 12 months in the construction sector. In this, the final post of the series, we look at ongoing growth and pressures in construction’s labour markets. Our earlier posts looked at construction’s economic output for 2023, and at growth in the residential and non-residential sectors.
Despite a divergence between residential and non-residential construction activity, tightness prevailed across labour markets in 2023.
Construction’s national unemployment rate averaged 5.3% last year. That figure was slightly higher than the record-low of 4.7% reached in 2022. However, construction unemployment rates remain well below their historical average of around 7.5%.
For eight months of the year, construction employment edged above 2022 levels. For the entire year, employment in Canada’s construction industry averaged 1.58 million workers – a 2% increase above the escalated levels seen in 2022.
The construction labour force – those employed and unemployed – averaged 1.67 million for the year, with increases seen in each month except December.
Unemployment rate in the construction industry, by province
Comparison of construction unemployment rates by province, 2023 versus 2022 versus pre-pandemic
* Pre-pandemic (5-year average) refers to the 5 years preceding the COVID-19 pandemic (i.e., 2015–2019)
Source: Statistics Canada. Table 14-10-0022-01 Labour force characteristics by industry, monthly, unadjusted for seasonality (x 1,000)
The number of vacant jobs in the construction industry, which peaked in April of 2022 at 94,500 openings, had retreated to 41,100 by December 2023. However, this is still well above pre-pandemic levels which averaged 27,100 openings for the same month between 2017 and 2019.
Moreover, the job vacancy rate in the construction industry (3.4% as of December 2023) remains higher than those for all industries combined (3.0%). Although this trend existed pre-pandemic, the gap had not previously exceeded 1 percentage point until March 2021 when construction vacancy rates hit 6.3% compared to the all-industries rate of 4.1%.
Efforts to recruit women are paying off
In efforts to address the hiring gap left as older workers retire from the workforce, industry leaders have been working diligently to attract workers from underrepresented groups – one of which are women.
This hard work seems to be paying off. The construction industry has managed to increase the share of women working on construction jobs and the share of women registering and completing apprenticeships in construction trades.
For seven of the 12 months in 2023, the construction labour force for women in Canada made double-digit increases compared to 2022. In June, the female labour force reached its highest-ever level of 238,300 workers which accounted for 14% of the total construction labour force – a proportion not seen since 1992.
Change in the construction labour force, Canada, monthly
Year-over-year change in the construction labour force by gender
Source: Statistics Canada. Table 14-10-0022-01 Labour force characteristics by industry, monthly, unadjusted for seasonality (x 1,000)
Another positive note is that the significant growth in the female construction labour force was within the 15 to 24 years age group – a trend likely driven by recruitment efforts currently in place in the industry, including grants being made available for the hiring of first-year apprentices from traditionally underrepresented and equity-deserving groups. In fact, in most months the construction labour force for young women (aged 15 to 24 years) grew at a pace above 30%, with growth peaking at +95% in October. The labour force for this group, which started 2023 at 11,500 workers ended the year at 18,600 workers.
Check out our Labour Market Corner blog for monthly updates on labour force data and trends, and turn to our 2024 to 2033 Construction and Maintenance Looking Forward highlight reports for forecasted labour market data across Canada.