Building the future: Why a robust skilled trades industry is vital for Canada

Skilled trades offer the promise of steady work, well-paying jobs and pathways to entrepreneurship. Yet, the industry is grappling with how to convince young Canadians to pursue careers that involve working with their hands. That’s a problem: if the supply and demand gap for skilled trades continues to grow and Canada’s construction industry cannot operate at full capacity, the Canadian economy will almost certainly slow.

As of 2023, Canada employed 1.6 million skilled tradespeople, which includes plumbers, electricians, carpenters and construction workers, representing 7.8 percent of total employment in the country. They’re the ones working on the critical infrastructure we need – homes, roads, power plants and data centres – to become a more productive society in the years ahead.

And while many skilled tradespeople work in traditional roles, the sector is rapidly evolving. Today’s trades encompass emerging fields such as renewable energy installation, advanced manufacturing, and digital infrastructure, reflecting the industry’s diversity and its growing importance in driving innovation across Canada.

With the latest federal budget earmarking more than $115 billion for infrastructure over the next five years, the government estimates that by 2033 there will be more than 410,000 construction job openings, with 189,000 of them stemming from retirement.

Given that youth unemployment is hovering around 12 percent and many Gen Z and Millennials are worrying about buying a home, one might think there would be more demand for these jobs. Yet, enrolment in post-secondary education continues to outstrip vocational education by a wide margin.

Michael Nguyen’s story is emblematic of how challenging it can be to convince young people to pursue careers in the skilled trades. The son of an immigrant father who grew his electrical business, Calgary-based MJ Electrical, from the back of a van into a thriving firm, Nguyen could have gone right into the family business after high school – he already helped his dad out from time to time. Instead, swayed by societal expectations that celebrated professions like medicine, engineering and law, he applied to medical school after earning his Bachelor of Science.

If it weren’t for COVID-19 and a father who already had a skilled trade job, he may have stuck with medicine. After seeing the strain the pandemic took on healthcare workers, while at the same time seeing his father’s business continuing to grow, he decided to pivot. In 2021, he earned a business degree and joined the company full-time.

Even Kieran Hawe, President and Chief Executive Officer of EllisDon, one of the largest construction companies in the country, finds himself having to debate the merits of the trades.

“Across the country, many families are having conversations around the dinner table about whether the skilled trades are the right path for their children, including ours. Even as the trades offer strong career prospects, excellent earning potential, and clear opportunities for career growth, parents often voice concerns about safety and whether traditional professions, like law or engineering, might offer a more comfortable route.”

Succession in question

While the country depends on skilled trades, the Conference Board of Canada estimates that shortages cost the economy $2.6 billion in 2024, and the industry is no longer seeing new trade companies emerge at the pace they once did. This slowdown in new business formation presents a growing challenge for companies like EllisDon, which relies on the expertise and capacity of tens of thousands of subcontractor companies to deliver transformational projects nationwide each year.

“There simply aren’t enough skilled subtrades available to meet the demand today, and based on what we’re seeing, there won’t be enough in the future either,” Hawe says. “And when that capacity isn’t there, projects face significant challenges, from delays to cost pressures, that ultimately impact our ability to deliver the infrastructure Canadians depend on.”

Succession is an especially challenging issue for medium-sized companies, explains Louis-Philippe Champagne, Associate Vice-President, Public Affairs and Industry Practices at the Canadian Construction Association. “Those who were successful in scaling their small businesses in the last 20 years are the ones stuck in a precarious situation,” he says. “They have something that is just too big to pass along to a family member or employee, yet too small to be the prospect of a larger acquisition.”

Filling the gap requires subtrade companies to commit to succession planning early and consistently, long before ownership transitions become urgent. Many owners still rely on informal or natural succession, hoping a top employee will eventually take over. But without intentional preparation, both the financial barrier and the logistical complexity can quickly become overwhelming.

“The logistics of transferring ownership, including financing and ensuring operational continuity, become increasingly difficult if conversations about succession do not start early enough,” Hawe says. “Subtrades need to consider structured, proactive plans that ensure a seamless transition of ownership, protect their ability to continue supporting the industry, and allow their companies to continue their success well into the future.”

Building for the future

Addressing the skilled trades shortage in Canada will require a coordinated approach on several fronts. For Champagne, it starts with skilled trades and construction careers having a greater presence in schools. “There’s little exposure for the average teenager nowadays to trades,” he says.

One approach is to follow local industry associations’ lead by offering targeted programs, such as the Le Camp des métiers construction in Québec, which is a free one-day immersive program run by the Association de la construction du Québec. It travels to different regions in the province, giving anyone 15 and over the opportunity to get hands-on experience with a trade. “They’re always sold out,” explains Champagne. “The demand is there.”

For Hawe, meaningful change will start when students fully understand the opportunities available to them in the skilled trades. Some subtrade professions also offer flexible schedules that many people find especially appealing. There is also the opportunity for tradespeople and site workers to move into office and corporate roles over the course of their careers, a path Hawe himself followed.

“The trades offer strong long-term stability, excellent earning potential, and real freedom to shape the life they want to build,” Hawe says. “When young people see how these careers can support the future they imagine for themselves, it becomes clear just how attractive this path can be.”

Still, encouraging younger Canadians to pursue a trade is a long-term solution, but the industry does not have the luxury of time to wait for an entire generation to move through school and training. In the near term, stakeholders are calling for immigration reform that prioritizes skilled trades.

“To fill this void, the immediate option is immigration,” Hawe says.

Recent policy changes restricting immigration levels may further constrain the skilled‑trades workforce. Compounding the challenge, the industry must invest tens of thousands of dollars per foreign worker to ensure they meet health and safety standards. As a result, Champagne and Hawe are advocating for pathways that provide workers with permanent residence rather than temporary work permits.

“Canada is really good at bringing in academic teachers and nuclear scientists, but they’re not so good at bringing in plumbers and carpenters and welders,” Champagne says, pointing to the fact that while 8 percent of the Canadian workforce is in construction, only about 0.5 percent of permanent residents fall into this stream. “There’s a massive disconnect.”

Improving the mobility of trades across Canada by recognizing workers’ credentials from other provinces will help, although progress has been slow. Developing support programs for skilled trades is another way to improve the pipeline of potential workers. The latest budget did put about $70 million toward a new union training program, and while the CCA is encouraged by the support, the vast majority of construction workers are non-unionized, meaning they won’t have access to that funding, says Champagne.

Avoiding the crunch

As challenging as it is to find skilled workers, the situation could be even worse if not for the slowdown in the Canadian housing market. When new construction ramps up, there will be an even greater demand.

“When the housing market rebounds, and it will, we’re going to have an issue with addressing those opportunities when they come to market,” says Hawe.

To attract the best talent, EllisDon focuses not only on highly competitive compensation packages, employee ownership opportunities, and an unwavering commitment to safe working environments, but also on building a culture where people feel supported and valued. Hawe notes that the company’s values create a deep sense of belonging across the organization. EllisDon offers a range of resources and programs designed to support employees’ physical and mental well-being, along with initiatives that promote respect, inclusion, and a positive workplace experience. The goal is to ensure EllisDon is a place where people can build meaningful, enduring careers.

While the trades offer strong financial rewards, Hawe emphasizes an equally important dimension: pride. Across the industry, tradespeople regularly speak about the satisfaction that comes from seeing a project through to completion. Whether it’s a new building rising on a familiar skyline or essential infrastructure taking shape, there is a deep sense of accomplishment in creating something tangible that becomes part of a community. The ability to point to a structure and say, “I helped build that,” is a powerful and enduring source of pride shared by workers across the industry.

Nguyen feels that pride too – he’s still in awe of the professionalism his father takes in his work, whether that’s helping clients with a problem or helping workers gain their certification and carve out their own careers in the industry. It’s only been a few years since Nguyen opted to follow his father’s footsteps, but he’s not looking back. “I find electrical work very fulfilling,” he says. “You get to help and work with so many different people. It’s a big positive to the job.”

Canada’s future relies on the expertise and dedication of skilled trades professionals—from those in traditional roles to those driving innovation in emerging fields. As the sector evolves to meet new challenges, it offers rewarding careers, meaningful impact, and the pride of building our communities. Addressing the skilled trades shortage will require coordinated efforts from educators, industry leaders, and policymakers to champion these essential professions and foster the next generation of talent.