The construction industry in British Columbia is facing a major challenge—finding skilled workers. According to the latest survey from the Independent Contractors and Businesses Association (ICBA), 72% of BC contractors say they are struggling to hire qualified trade workers. This shortage is putting pressure on construction companies, causing delays and higher project costs at a time when the province is already dealing with a housing affordability crisis.

How the skilled labor shortage is affecting the industry

The lack of skilled workers is impacting all areas of construction, from industrial and commercial projects to residential developments. Contractors are forced to delay or even turn down new projects because they can’t find enough tradespeople to do the work. This slows project timelines and drives up costs as companies compete for limited labor. While some relief has been seen in the Interior and Northern BC regions, most contractors across the province still feel the strain. 

Here are the biggest challenges heading into 2025 for contractors cited by this survey:

• Worker shortage
• Declining profit margins
• Securing new projects
• Permitting and approval delays
• Regulatory burdens
• Employee retention issues

Balancing these factors is proving to be a significant challenge for contractors across BC. As projects take longer to complete, BC businesses face shrinking profit margins and increased pressure to meet deadlines, making the labor gap a major roadblock to BC’s economic growth.

How contractors are responding to the labor shortage

To stay competitive, BC contractors are taking action to manage the labor shortages by providing incentives and training programs. These strategies aim to strengthen their ability to recruit workers and keep projects from stalling. Here are some of the ways contractors are responding:

• 68% of companies are investing more in training programs, such as apprenticeships and upskilling current employees
• 65% are spending additional time and resources on recruitment, expanding their search for skilled labor beyond local markets
• 55% have increased wages to attract and retain workers, even though this adds financial pressure

Even with these measures being taken, several businesses are being forced to turn down projects or extend timelines because they simply can’t find enough workers. As a result, many construction companies are struggling to balance rising costs due to shrinking profit margins.

What this means for BC’s construction industry

The ongoing skilled labor shortage presents a real challenge for BC’s construction industry. With contractors struggling to fill roles, the pace of building projects slows down, directly impacting housing supply and infrastructure development. This slowdown is set to worsen BC’s housing affordability crisis and delay critical projects in the industrial and commercial sectors.

Rising labor costs also mean higher overall project expenses, which may be passed down to developers and, eventually, consumers. This situation makes it harder for smaller construction firms to compete, leading to a greater concentration of work among larger companies. Without faster action to improve industry training and adjust immigration policies to bring in skilled workers, these problems will likely continue.

Bottom line

Companies are doing their best to adapt—investing in training, recruiting more aggressively, and raising wages—but these efforts alone may not be enough. Nearly two-thirds of contractors feel the government is not supporting businesses like theirs, making the situation even more difficult.

The government and industry leaders need to work together to develop long-term solutions. Addressing BC’s labor shortage is necessary to keep construction projects moving forward and support the province’s economic growth.

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