Under the Hard Hat

Tag: Labor shortages

  • 6 tips for attracting and retaining Gen Z workers in the skilled trades

    6 tips for attracting and retaining Gen Z workers in the skilled trades

    As the next generation enters the workforce, the skilled trades industries may see an influx of new labor. Society has historically encouraged young people to pursue traditional four-year post-secondary institutions, but Gen Z is forgoing that path, opting instead for quicker routes to rewarding careers in industries like construction, plumbing, and welding. To attract, hire, and retain Gen Z workers, companies must understand their values, implement flexible policies, offer competitive pay and benefits, and provide career development opportunities.

    The difference with Gen Z

    Aside from the years they were born, the fashion trends, and the popular media they grew up on, there are significant differences between younger and older generations in terms of attitudes, values, and drive. 

    Gen Z is the first generation to grow up entirely in the digital age, which lends itself to its refreshed, technically inclined approach to work. It embraces career fluidity and meaningful work experiences and often shares an entrepreneurial spirit. It also craves innovation and impactful work.

    Put simply, Gen Z doesn’t just want to work—they want their work to mean something and to be done in alignment with their terms.

    How they differ from Gen X: Generation X, born between the early 1960s and late 1980s, values a work/life equilibrium versus Gen Z’s preference for more downtime. They also tend to be slower on the change curve, opting instead for stability over the quickly evolving workplaces Gen Z appreciates. They value hard work and employee loyalty over job hopping and fast-tracked growth. 

    How they differ from Millennials: Millennials, born between 1981 and 1996, are considered digital pioneers versus the digital natives of Gen Z. Millennials value optimism over realism and are more open to collaboration over Gen Z’s preference for independent work. Millennials are also said to prefer digital communication in the workplace over face-to-face communication, which Gen Z also opts for. 

    What characterizes Gen Z workers?

    Tech savviness: The generation raised with a smartphone in hand is motivated by hands-on experience with the latest technology. They value technological innovation, improvements in efficiency, and mastery of technical production and utilization. 

    Being purpose-driven: Gen Z feels that a rewarding career makes a difference. Jobs with companies that promote social justice, commitment to sustainability, implement energy-efficient processes, and develop eco-friendly products appeal significantly to them. 

    Valuing work/life balance: People used to live to work, and Gen Z is part of a generation that works to live—and live, they do. Lengthy shifts of 10+ hours often don’t appeal to the younger generations, which may deter them from entering the industry. 

    Gen Z and the skilled trades

    The construction industry has received a reputation overhaul in recent years, with the adoption of machine learning, increased pay, and the slow implementation of more flexible schedules. What was once known as a dirty, less educated, more-do-less-think industry is now being rebranded as innovative and more stimulating than a 9-5 desk job. 

    As young people continue to be disenchanted at the prospect of a traditional University path, more Gen Z workers opt for these trade roles, giving them the fitting name of the “toolbelt generation.” Some of the main reasons for a career path swap to skilled trades include:

    • Hands-on learning: Hands-on, on-the-job training and education allow job seekers to scale the ranks quickly, helping them learn more, earn more, and feel more mentally fulfilled. 
    • Better job security: The construction industry is experiencing a labor shortage and needs more workers now than ever. Knowing their roles are high in demand and won’t be going anywhere could be a significant pro for Gen Z. 
    • Good pay and benefits: The construction industry offers excellent wages and increasingly competitive benefits. Avoiding the financial burden of University student loans and moving straight to a lucrative career could be reasons enough to join the trades. 
    • It’s technology-heavy: Artificial Intelligence (AI), drones, simulation training, and software advancements are modernizing the AEC spaces and make a great selling point to Gen Z workers who are eager to blend physical and technical work. What was once a hammer-and-nail industry is more like a 3D print-and-simulate industry. 

    6 tips to retain Gen Z workers in the skilled trades

    1. Provide a career development roadmap

    Gen Z values having a direct, attainable career path ahead of them, so companies must create an environment that encourages development and clearly lays it out. These workers seek opportunities to make a meaningful impact, so encourage creativity, offer advancement opportunities in the organization, and show them plainly what that looks like. These are simple, effective processes to establish to attract younger workers. 

    2. Offer opportunities for entrepreneurship

    Gen Z’s attraction to impactful work comes mainly from their entrepreneurial spirit; it’s in their nature. They desire autonomy and the chance to be their own boss. The trades go hand in hand with entrepreneurship, whether it’s starting their own contracting company or specializing in a valuable, niche skill. Employers will support their natural independence by providing resources that teach young workers how to sharpen their business acumen and make Gen Z feel more valued. 

    These skills provided to Gen Z will also support better retention rates. Employers shouldn’t fear that Gen Z will run off to start a competitor company. Instead, they’ll appreciate that their new skills and experience offerings will incentivize them to stay and learn as much as they can or help them advance into leadership. 

    3. Flexibility is key

    The skilled trades are known for long, grueling hours. Schedules often consist of five or six days a week and mostly 10+ hour shifts. Some companies are transitioning to a shorter workweek and fewer hours with varied shifts that overlap to avoid delays due to lost hours.

    As expected, the result shows boosted employee morale, more productivity, and a thriving work culture. 

    4. Offer competitive pay and benefits 

    Attractive pay and competitive benefits will always be an effective retention tactic. Especially now, in the middle of a cost-of-living crisis. Trades companies should keep salaries competitive and benchmark regularly to ensure their compensation packages are aligned with industry, age, and geographical standards. 

    Companies can utilize compensation benchmarking tools to stay aware of market rates. This ensures they offerx attractive wages that will open the young worker talent pool. 

    5. Keep your technology up to date

    By incorporating the latest technology and digital tooling, companies create an environment that naturally attracts Gen Z workers. They value modern technology, and having cutting-edge tools and innovations accessible will boost productivity and make Gen Z’s work feel exciting and rewarding. They were raised in the digital age, and having them on board would make them a great resource for onboarding new technology systems. 

    6. Partner with schools

    Gen Z tends to shy away from traditional post-secondary institutions, which means influencing them when considering their career options is key. Companies can do this by collaborating with schools and other educational institutions, providing them insight into the technology and hands-on skills they could gain in the skilled trades space.

    Bottom line

    Who doesn’t want a workspace with more innovation, collaboration, flexibility, and purpose-driven work? Gen Z could bring all of those aspects to the skilled trades industry, and attracting these workers is as simple as keeping a tech-savvy space, partnering with schools, offering clear career paths, and catering to their entrepreneurial spirit. 

    Bridge the industry labor shortage with people looking to revolutionize the space. Change is a good thing, we promise. 

    Like this and want more? Subscribe to our weekly newsletter for more tips and advice on getting into the skilled trades.

  • Construction in flux: How the new US administration is reshaping the industry

    Construction in flux: How the new US administration is reshaping the industry

    The construction industry faces new challenges as shifts in labor laws, trade policies, and regulations take shape. Workforce shortages continue to strain projects while rising material costs add to financial pressures. With the new administration settling in, recent policy changes will affect builders, contractors, and developers, shaping the industry’s path for 2025 and beyond.

    Quick looks:

    • Stricter immigration policies and enforcement could shrink the construction workforce, exacerbating an already critical labor gap.
    • Changes in worker classification rules and the expiration of key tax incentives may raise construction firms’ labor and operational expenses.
    • Proposed tariffs on imports from Mexico, Canada, and China threaten to increase the costs of steel, lumber, and other essential materials.
    • To navigate these challenges, businesses must invest in workforce development, explore alternative sourcing, and engage in policy advocacy.

    The construction labor crunch

    The construction industry is bracing for major disruptions as the new administration ramps up immigration enforcement. A recent executive order, signed on January 20, 2025, has kicked off Trump’s central 2024 campaign promise, what he called “the largest domestic deportation operation in American history.” With construction heavily reliant on undocumented workers, the sector is directly in the crosshairs.

    Skilled labor has been in short supply for years, and the gap is only growing. The construction industry will need an estimated 439,000 new workers in 2025 to meet demand. Ongoing housing projects, disaster recovery efforts, and the increasing demand for data centers are stretching an already strained workforce. Finding enough skilled workers to meet these demands is becoming an uphill battle, and tighter immigration policies will worsen the industry’s labor shortages. 

    If a significant portion of the workforce is removed, projects could be delayed, labor costs could rise, and deadlines could be difficult to meet. Contractors are already feeling the pressure, and industry experts warn that things could get even more challenging in the months ahead. To help keep projects moving, construction firms must rethink hiring strategies, explore workforce development programs, and push for policy solutions. 

    Stricter immigration enforcement is adding another layer to the challenge. Considering that 26% of the construction workforce comprises immigrants (with 13% of construction employees being undocumented), a significant portion could be at risk with stricter policies, further tightening the labor supply. The construction industry has long relied on immigrant labor, especially in states like Texas and California, where foreign-born workers comprise a large workforce. If deportation policies ramp up, the labor pool could shrink even further, making it more challenging and expensive for contractors to complete projects on time.

    Regulations and taxes: What’s changing for construction?

    New policies are reshaping how construction businesses operate, and regulatory shifts could significantly impact everything from worker classification to tax incentives. Labor laws and tax policy changes create uncertainty, leaving contractors and developers wondering how to adjust.

    Worker classification and labor rules

    The rules around worker classification are shifting, and construction businesses could feel the impact. In March 2024, the Department of Labor (DOL) introduced a new rule that changed how workers are classified as employees or independent contractors. This update replaces a 2021 rule and brings back a multifactor test to determine whether a worker is truly independent or should be classified as an employee.

    The newer rule considers factors like an employer’s level of control, whether the worker has a real opportunity for profit or loss, and how permanent the job is. This could mean higher costs and more oversight for construction companies that rely on subcontractors and gig workers. 

    With stricter worker classification rules, some contractors previously treated as independent may need to be reclassified as employees, which would increase wages, benefits, and compliance costs. This shift could pressure construction firms that depend on flexible labor to keep projects moving. 

    Tax policy shifts on the horizon

    The construction industry is navigating a complex landscape of shifting tax policies and potential new tariffs, which could significantly impact operations and profitability. Several key tax incentives that have benefited construction businesses are set to expire soon:

    • Bonus depreciation: Introduced under the Tax Cuts and Jobs Act (TCJA), bonus depreciation allowed businesses to immediately deduct a significant portion of the cost of eligible property, such as equipment and machinery. However, this benefit is being phased out: it decreased to 80% in 2023, 60% in 2024 and is scheduled to continue declining until it reaches 0% in 2027. Without this incentive, construction firms may face higher tax liabilities, affecting cash flow and their ability to invest in new projects and equipment.
    • Section 199A deduction: This provision offers a 20% deduction on qualified business income (QBI) for pass-through entities, including many construction companies. The deduction is set to expire at the end of 2025, which could lead to increased tax burdens for these businesses, further impacting their financial planning and investment capabilities.

    Potential new tariffs and their implications

    In addition to tax changes, the industry is bracing for potential new tariffs that could affect material costs:

    • Tariff proposals: The administration has signaled intentions to impose tariffs on imports from key trading partners. For instance, there is a proposal for a 25% tariff on materials imported from Mexico and Canada and a 10% tariff (above any additional tariffs) on Chinese imports. These tariffs could significantly increase the cost of construction materials, such as steel and lumber, leading to higher project expenses and potential delays.

    What the industry can do

    With labor shortages, shifting regulations, and rising material costs putting pressure on construction, businesses can’t afford to take a wait-and-see approach. Proactive steps—both within the industry and at the policy level—will be critical to keeping projects on track and controlling costs.

    Building a stronger workforce

    Expanding access to temporary work visa programs specifically for construction could help bridge the skills gap, allowing companies to bring in much-needed labor. At the same time, long-term solutions are just as important. Investing in high school and post-secondary training programs can help grow a domestic workforce equipped with the skills the industry needs. More funding for trade schools, apprenticeships, and on-the-job training programs could be a game-changer.

    Bracing for trade and tariff impacts

    Construction companies should be preparing for higher costs. Diversifying suppliers, bulk purchasing, and exploring alternative materials could help soften the financial blow. However, industry leaders also have a role in shaping these policies. Engaging with policymakers to advocate for tariff exemptions or industry-specific relief measures could help mitigate some of the impact, making it easier for businesses to keep projects moving forward.

    Bottom line

    The construction industry thrives when it adapts. Whether it’s workforce development, regulatory compliance, or material sourcing, taking action now can help companies stay competitive in an increasingly complex landscape.

    Navigating these changes will require proactive adaptation and industry-wide advocacy. Staying informed and prepared will be critical for companies looking to stay ahead of the curve.

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  • BC contractors face 72% skilled labor shortage amid rising project delays

    BC contractors face 72% skilled labor shortage amid rising project delays

    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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  • Breaking barriers: Checkr’s apprenticeship program opens doors in construction

    Breaking barriers: Checkr’s apprenticeship program opens doors in construction

    Checkr has unveiled a groundbreaking apprenticeship initiative to help individuals with criminal records secure opportunities in skilled trades. The program addresses workforce shortages by providing pathways to stable employment while promoting inclusion.  

    The initiative is built around Catalyst, a workforce development platform created by Checkr to connect justice-impacted individuals with job training and employment. The platform partners with major organizations and trade associations, including those in the construction sector, to create opportunities for workers who may otherwise face significant hiring barriers.  

    Construction, already grappling with a shortage of skilled workers, stands to benefit greatly from this initiative. Labor gaps have persisted, with many firms reporting difficulty finding qualified candidates. By offering training and support, Checkr’s program helps diversify the workforce and meet the industry’s growing demand for talent.  

    Apprenticeships provide the critical hands-on experience workers need to build careers in the skilled trades. For individuals re-entering the workforce, this can be a chance to develop skills in areas such as carpentry, plumbing, or electrical work—fields where demand for qualified professionals continues to rise. By aligning with trade unions and contractors, Catalyst ensures apprentices gain industry-specific training and real-world experience.  

    Employers involved in the program also benefit. Partnering with Catalyst allows companies to access a pool of motivated workers while reinforcing their commitment to social impact. Hiring individuals with diverse backgrounds fosters stronger teams and demonstrates an inclusive approach to business.  

    For the construction industry, programs like this have implications beyond just filling positions. A more inclusive workforce introduces new perspectives, innovation, and a deeper connection to the communities they serve. It also showcases the industry’s potential to lead by example in addressing societal challenges through meaningful action.  

    Subscribe to the Under the Hard Hat weekly newsletter to stay informed about programs like this and other impactful stories in construction. Be part of the conversation shaping the future of the trades. 

  • Trump’s deportation plans could undermine U.S. construction

    Trump’s deportation plans could undermine U.S. construction

    The U.S. construction industry is facing a potential crisis. President Trump’s plan to deport millions of undocumented workers might hit a sector that relies heavily on immigrant labor right where it hurts.

    Here’s the reality: immigrants are the backbone of construction. In 2022, they made up about 25% of all construction workers across the U.S. and an even higher 31% of skilled tradespeople. That number jumps to over 40% in states like California and Texas.

    And let’s not forget the impact of undocumented workers. They make up a significant part of this labor force, with around 1.5 million undocumented immigrants working in construction—about 13% of the entire workforce. That’s a huge piece of the puzzle that could be at risk.

    Potential impact of mass deportations

    Taking a huge chunk of workers out of the construction industry would make a tough situation even worse. Labor shortages are already a major challenge, and things could spiral further. In fact, the Associated Builders and Contractors Trade Association estimates the industry will need nearly 454,000 new workers by 2025 just to keep up with demand.

    Competition for qualified workers could increase labor costs if the workforce shrinks dramatically. And when costs rise, construction slows down—projects take longer, housing becomes more expensive, and infrastructure upgrades get delayed. That’s a domino effect the economy doesn’t need.

    It’s also important to remember that undocumented workers aren’t just contributing their labor but also paying taxes. Billions of dollars in federal, state, and local taxes come from undocumented immigrants working in construction and their households.

    Addressing illegal immigration is no simple task, but the economic ripple effects of mass deportations could hit the construction industry hard. With labor shortages already putting pressure on the sector, this kind of disruption could create serious challenges for both construction and the broader economy—especially as we work to tackle housing shortages and build essential infrastructure.

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  • How to maintain safe work sites amid labor shortages

    How to maintain safe work sites amid labor shortages

    Labor shortages can result in inexperienced workers, overburdened supervisors, and reduced training. These factors can undermine workplace safety and increase the likelihood of accidents and injuries. By proactively addressing these issues—through training, supervision, and clear communication—companies can help mitigate risks and maintain safer worksites despite labor shortages.

    The labor problem

    Both the United States and Canada are straining under massive skilled labor shortages. A recent report by the National Association of Homebuilders states that 723,000 workers are needed to meet current housing and infrastructure projects in the United States, and a recent survey by the Associated General Contractors of America shows that 88% of contractors need help hiring skilled labor. In Canada, 700,000 skilled tradespeople will retire by 2028, causing a massive shortage of skilled tradespeople.

    These labor shortages aren’t just a headache for hiring managers; they also have real-world effects, such as project delays, increased costs, decreased quality control, and safety issues. 

    Labor shortages and safety

    Those who have worked on construction sites know firsthand how labor shortages can compromise safety. When your crew is down a few people, it puts immense pressure on the team to meet deadlines and maintain work quality with fewer hands on deck.

    Shortcuts

    When deadlines are looming and there aren’t enough workers to fill every role, it can be tempting to cut corners. These shortcuts include skipping safety precautions, rushing through tasks, or failing to perform routine machine maintenance. Shortcuts can compromise the safety of crews and worksites, increasing the risk of accidents like falls, equipment failures, and structural collapses.    

    Inexperienced crews

    Labor shortages often mean that companies must fill roles by any means necessary—even if those applying lack the skills or experience needed to do the job. Inexperienced workers may not have the same technical knowledge or familiarity with safety standards as more seasoned tradespeople. This increases the likelihood of mishandling equipment, misinterpreting instructions, and not recognizing potential workplace safety hazards, such as unstable scaffolding or improperly secured loads.

    Reduced supervision

    Supervisors are often stretched thin during labor shortages. They try to be in several places simultaneously while managing several or larger crews than usual, which reduces their ability to monitor all activities effectively. Without adequate supervision, crews may fail to wear appropriate PPE and safety rules may not be enforced.

    Lack of training

    While trying to fill labor gaps, many companies might prioritize getting workers on-site over adequately training them. Untrained workers pose a significant risk to worksite safety because they may not know how to respond to emergencies like fires, chemical spills, or equipment malfunctions.

    New (or more) subcontractors 

    Labor shortages can force general contractors to use subcontractors to fill gaps in specific trades. While subcontractors may be skilled and experienced in their respective trades, they may not share the same safety standards, and poor communication between subcontractors and leading crews can cause safety hazards.

    How to maintain safe work sites amid labor shortages

    Even when short-staffed, maintaining a strong commitment to safety is crucial for protecting workers, preventing accidents, and ensuring projects are completed on time. There are several steps companies can take to maintain safe worksites even when facing significant labor shortages.

    1. Connected safety

    When supervisors struggle to be everywhere at once, technology can help shoulder some of the load. Connected safety involves leveraging the power of AI technology to help keep workers (and worksites) safe. 

    Drones and remote site monitoring systems can use AI to identify risks, hazards, and potential accidents, while AI-powered cameras can identify workers not wearing appropriate PPE. These technological helpers can reduce the need for human oversight by automating many safety monitoring tasks and preventing accidents before they happen.

    2. Conduct regular safety briefings

    Companies experiencing labor shortages are often short on time, but while skipping safety meetings may be tempting, running a short-staffed crew makes regular safety briefings more critical than ever. 

    Regularly reviewing safety protocols, procedures, risks, and precautions means everyone’s on the same page, from new hires to subcontractors. These meetings also reinforce that safety culture remains a top priority in the workplace, regardless of staffing issues. 

    3. Enforce safety protocols

    Labor shortages often lead to lapses in safety compliance, but enforcing safety protocols ensures that everyone on the crew knows that safety is non-negotiable. To do this, companies must first communicate their safety protocols (like PPE requirements and safe equipment operation guidelines) before also communicating the consequences of not following these procedures. 

    4. On-site inspections

    Similarly, on-site inspections can help identify and address unsafe conditions before accidents occur. To keep worksites safe, companies should conduct regular inspections to evaluate the safety of scaffolding, tools, machinery, and especially high-risk areas like trenches. On-site inspections reduce risks, eliminate hazards, and provide data and documentation to help companies identify patterns in unsafe practices.

    Bottom line

    Labor shortages can put worksite safety at risk, but companies can prevent accidents by maintaining safety procedures and protocols. Even when running short on skilled tradespeople, it’s possible to maintain safe worksites with technology, proactive communication, supervision, and consistent oversight. 

    For more tips about staying safe on the job site and under the hard hat, subscribe to our newsletter!

  • NAHB Labor Report shows increasing need for construction workers

    NAHB Labor Report shows increasing need for construction workers

    A recent report from the National Association of Home Builders (NAHB) highlights an alarming need for more construction workers in the U.S., with the demand showing no signs of slowing down. The report, produced by the Home Builders Institute (HBI) in fall 2024, points to a growing labor shortage as the industry continues to struggle to keep up with construction demands. The data reveals that an additional 723,000 workers are needed to meet current housing and infrastructure projects, stressing the urgent need for solutions.

    According to the report, this labor gap is driven by several factors, including an aging workforce, a lack of new workers entering the trade, and a high demand for housing construction. Residential construction alone will require 400,000 more workers annually just to maintain pace. With 90% of builders stating that labor shortages are one of the biggest challenges, this growing issue could seriously affect the construction industry’s ability to meet market needs.

    Additionally, the NAHB Labor Report highlights that training and education efforts must be ramped up significantly. Industry experts are concerned that fewer young people are pursuing careers in the trades, leading to a decline in skilled labor available for carpentry, electrical work, and plumbing jobs. To address this, programs designed to attract and train new workers must become a key focus. The report stresses that delays in housing projects, increased costs, and a slowdown in economic growth are likely outcomes if these shortages aren’t addressed.

    Moreover, the report touches on the need to embrace new technologies to help fill in the gaps caused by workforce shortages. Prefabrication and modular construction have emerged as potential solutions to reduce the need for manual labor and speed up project timelines. However, even with these innovations, trained workers will remain essential to ensure quality builds and on-time project completion.

    This labor crisis has also had ripple effects, impacting housing affordability nationwide. Builders face rising costs and longer project timelines, which inevitably lead to higher prices for new homes. As the demand for housing continues to surge, finding ways to close this labor gap is more critical than ever to help stabilize prices and keep the industry moving forward.

    Bottom line

    Ultimately, the NAHB Labor Report paints a clear picture: without significant efforts to boost the construction workforce, the industry could face substantial setbacks in the coming years. The focus now shifts to implementing robust recruitment, training, and technological solutions to meet the market’s growing demands.

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  • Alberta feeling pressure from construction labor shortages

    Alberta feeling pressure from construction labor shortages

     A skilled labor shortage in Alberta is causing headaches for construction projects and jeopardizing the province’s ability to keep up with a growing population. 

    In early June, Calgary suffered a catastrophic break in one of its water mains, causing city officials to declare a local emergency and ask households to reduce water use by 25%. The broken pipe paralyzed the city for weeks as crews worked around the clock to complete repairs before millions of visitors descended on the city for the Calgary Stampede. 

    The source of the break was an ancient pipe, the sort of aging infrastructure problem that many experts warn will plague Alberta in the next few decades, especially coupled with a shortage of skilled tradespeople needed to repair it.

    Alberta’s population is rapidly growing—the province added 200,000 new citizens last year alone—and with this growth comes the need to build new homes, repair roads, and upgrade critical infrastructure. Unfortunately, like the rest of Canada, Alberta is experiencing a shortage of skilled trades. 

    Buildforce Canada says part of the issue is the number of retiring tradespeople Alberta will need to replace. An estimated 42,500 workers (23% of the workforce) are expected to retire by 2033. 

    To combat this problem, the Government of Alberta has increased funding for post-secondary apprenticeship programs. Higher enrolment rates seem to indicate

    the strategy has been successful, but it will take years for graduates to gain the skills and experience needed to match those hanging up their hard hats. 

    To fill the gap, which is estimated to reach 22,000 jobs by 2033, Alberta has also launched an initiative designed to entice tradespeople from Ontario, Quebec, and BC. The Alberta is Calling campaign promises a $5000 tax-free “moving bonus” to anyone who moves to Alberta and stays for a year while working in any of 55 included skilled trades. 

    In the meantime, business owners compete with large-scale industrial projects to hire the skilled tradespeople they need to get the job done.