March 31, 2025 – Ottawa, Ontario
Construction investment growth in Newfoundland and Labrador was modest in 2024. Both the residential and non-residential sectors reported growth in activity, with gains of 3% and 2%, respectively.
Although the former benefitted from growth in new housing construction, activity in residential renovations – which is the principal driver of residential investment in the province – was unchanged from 2023. Activity in the non-residential sector, meanwhile, was driven by ongoing work on various major engineering-construction projects, including the West White Rose offshore oil platform, Voisey’s Bay underground mine, and Marathon Gold’s Valentine Mine.
Released today, the BuildForce Canada 2025–2034 Construction and Maintenance Looking Forward report for the province calls for growth in both sectors. The outlook for the residential sector is muted. Although investment in new housing is projected to grow strongly into 2029, it slows significantly in later years. Steady growth in residential renovations offsets this trend.
The outlook for the non-residential sector is closely tied to several key major projects. Should these proceed within the proposed timeframe, the province is expected to see strong growth in the short- and medium-term outlook periods. After a slight pause in 2029, engineering construction investment rises sharply with work on the proposed Bay du Nord project.
Across the outlook period, overall construction employment is projected to increase, as growth of 20% in the non-residential sector offsets a contraction of just under 6% in the residential sector.
It is important to note that the investment trends and employment projections presented in this scenario were developed with industry input prior to the emergence of potential trade tensions between Canada and the United States. This forecast therefore does not take into account the possible application of tariffs on Canadian exports to and imports from the United States, nor does it account for any resulting changes in trading patterns between Canada and its other key trading partners.
“Entering our forecast period, the non-residential construction labour force in Newfoundland and Labrador is likely in a surplus position. Several key major projects have concluded in the past 12 months, while the status of several proposed projects is less certain,” says Bill Ferreira, Executive Director of BuildForce Canada. “Should these projects proceed, the province is expected to see significant growth in its non-residential outlook.”
The labour force outlook for Newfoundland and Labrador is complicated by the province’s comparatively older population. As many as 6,100 workers, or 29% of the 2024 labour force, are expected to exit the industry due to retirement by 2034. Combined with demands created by growth, the industry could face a hiring gap of as many as 8,300 workers by 2034.
Recruitment from among traditional sources will help to alleviate some of these hiring pressures. An estimated 4,500 first-time new entrants under the age of 30 are expected to join the sector from the local population. Even with these additions, however, the industry may face a hiring gap of 3,800 workers that will need to be recruited from outside the local construction labour force.
“Given these growth pressures, there is no doubt that the province’s construction sector must continue to recruit new workers for the long term,” says Ferreira. “Keeping pace with demands will require a combination of strategies that include maintaining local recruiting efforts as well as targeted recruitment strategies focused on individuals from groups that have been traditionally under-represented in the industry.”
New registrations in Newfoundland and Labrador’s 11 largest construction trade programs increased by 22% in 2023, compared to 2022 levels, and returned to levels not seen since 2016. New registrations approached or surpassed record levels for the refrigeration and air conditioning mechanic and heavy-duty equipment technician trades. Program completions have been slower to recover, however, and remain below pre-pandemic levels.
Meanwhile, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.
In 2024, there were approximately 2,130 women employed in Newfoundland and Labrador’s construction industry. Of them, 12% worked on site, directly on construction projects. However, as a share of the 17,300 tradespeople employed in Newfoundland and Labrador’s construction industry, women made up just 2% of the workforce in 2024.
The Indigenous population is the fastest growing population in Canada and therefore presents recruitment opportunities. In 2023, Indigenous People represented 12% of Newfoundland and Labrador’s construction labour force – more than the 9.6% represented in the provincial labour force as a whole. Over the past decade, the share of Indigenous People in the province’s construction workforce has increased notably, up from 8% in 2014. As the Indigenous population continues to grow, the sector must continue to work with Indigenous communities to promote career opportunities to their youth and invest in initiatives that foster long-term retention and a welcoming workplace environment where they can build fulfilling careers.
The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement patterns and adjusted federal immigration targets, the province is expected to welcome nearly 44,400 new immigrants between 2025 and 2034, making these individuals, if successfully recruited, a key and growing part of the industry’s future labour force.
Increasing the participation rate of women, Indigenous People, and new Canadians could help Newfoundland and Labrador’s construction industry address its future labour force needs.
About BuildForce Canada
BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.
Contact
For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.
This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:
Terry French
President
Construction Labour Relations Association – NL
709-753-5770
Corey Parsons
Deputy Director
Trades NL: Building Trades of Newfoundland & Labrador
709-726-4560