Canada's Skilled Labour Shortage: How to Find and Keep Top Talent

Canada’s skilled labour shortage isn’t just a headline—it’s the top challenge facing contractors from coast to coast. The numbers are stark: in the trades sector alone, roughly 700,000 workers are set to retire by 2028, and the pipeline of new talent isn’t keeping pace. The result? Job vacancies go unfilled, projects get delayed, costs rise, and companies of all sizes are scrambling to attract and retain skilled people.

According to BuildForce Canada, the construction sector alone will need to hire about 351,800 new workers by 2033 to replace retirees and meet rising demand. Ontario, Alberta, and British Columbia are among the hardest-hit provinces.

But while the crisis is real, it also presents a unique opportunity for contractors who are willing to adapt. By rethinking your approach to recruitment, culture, and retention, you can build a team that not only survives but thrives in today’s ultra-competitive market. Here’s how.

Building a Workforce That Lasts: Smart Solutions for a Tight Labour Market

Source : RenoQuotes

1. Build Relationships with Local Trade Schools

One of the most effective ways to access new talent is to forge strong connections with local trade schools and apprenticeship programs. Institutions like SAIT (Southern Alberta Institute of Technology) in Calgary, BCIT (British Columbia Institute of Technology) in Vancouver, and Centennial College in Toronto are training the next generation of skilled workers.

• Attend career fairs and host site tours to introduce students to your company and projects.

• Offer apprenticeships, internships, or co-op placements—hands-on experience is invaluable, and these programs often lead to long-term hires.

• Collaborate with instructors to shape curriculum or guest lecture on real-world industry trends, helping students see the value of your company and the opportunities you offer.

• Track success with simple metrics like apprentice-to-hire conversion rates or training completion rates.

By being present and involved, you position your business as a first-choice employer for graduates and apprentices.

2. Create a Work Culture People Want to Join (and Stay For)

The skilled labour shortage isn’t just about numbers—it’s about competition. With more job openings than qualified candidates, workers have options. That means your company culture matters more than ever.

• Prioritize safety and respect on every job site.

• Offer flexible scheduling or accommodations where possible, recognizing that work-life balance is a growing priority.

• Recognize and reward achievements, whether through formal programs or simple public acknowledgment.

• Invest in professional development: support further training, certifications, and opportunities for advancement.

• Encourage inclusion and diversity by actively recruiting women, Indigenous workers, and newcomers—groups that remain under-represented in the skilled trades.

A positive, supportive workplace not only attracts new hires but also keeps your best people from looking elsewhere. According to a recent CFIB survey, issues like lack of motivation and weak problem-solving skills are common pain points for employers. Building a culture that values growth, mentorship, and engagement can help address these challenges head-on.

3. Offer Competitive Benefits—Beyond the Hourly Wage

Wages are rising, but salary alone isn’t always enough to win top talent—especially when competing with larger firms or major infrastructure projects. Contractors who think creatively about compensation and benefits can stand out.

• Provide health and dental benefits, retirement savings plans, or profit-sharing.

• Offer paid training, tool allowances, or travel stipends.

• Consider performance bonuses tied to safety, productivity, or customer satisfaction.

• Support mental health and well-being through employee assistance programs or wellness initiatives.

• Communicate these benefits clearly in job postings and during interviews.

Small gestures can make a big difference, especially for workers weighing multiple job offers. Remember: benefits that improve quality of life, stability, and future prospects are highly valued by today’s workforce.

4. Leverage Labour Mobility and Reduce Barriers

Don’t limit your search to your immediate region. Many provinces face similar shortages, but inconsistent licensing and certification rules can restrict worker mobility.

• Familiarize yourself with Red Seal Program designations, which allow qualified tradespeople to work across provinces.

• Be proactive in helping candidates with re-certification paperwork or application fees.

• Advocate for mutual recognition of credentials within your industry associations.

• Support immigrant and internationally trained tradespeople by guiding them through provincial credential assessments.

Stay informed about interprovincial agreements and labour mobility frameworks—doing so can help you access a wider talent pool and fill gaps faster.

5. Invest in Training and Upskilling

The skilled labour shortage is partly a skills gap. Many candidates are eager but lack specific qualifications. By investing in on-the-job training, mentorship, and upskilling, you can develop the talent you need from within.

• Partner with government programs or industry associations offering training incentives or wage subsidies—such as the Union Training and Innovation Program (UTIP) or Apprenticeship Service funding.

• Establish clear career pathways so employees see a future with your company.

• Pair apprentices with experienced journeypersons for mentorship, improving retention and skill transfer.

• Measure progress with metrics like certification rates, training completion, or turnover reduction.

This approach not only fills immediate gaps but also builds loyalty and reduces turnover.

The Economic and Sectoral Impact of Canada’s Skilled Labour Shortage

Source : RenoQuotes

Canada’s skilled labour shortage is more than an HR challenge—it’s a major economic issue affecting nearly every sector. From construction to hospitality, the lack of qualified tradespeople is driving up costs, causing delays, and putting pressure on businesses and consumers alike.

Rising Costs and Delays

In construction, shortages of carpenters, electricians, and HVAC technicians mean frequent delays and increased costs for projects. This reduces the supply of new housing—contributing to Canada’s ongoing housing crisis—and slows the completion of critical infrastructure like roads and transit.

Small Businesses Under Strain

Small and medium-sized businesses are especially hard hit. Unable to match the wages and benefits of larger firms, many SMEs struggle to fill skilled positions, limiting their growth and ability to fulfill contracts. According to BuildForce Canada, the construction industry alone risks losing billions in productivity and project opportunities each year due to labour shortages.

Higher Prices for Canadians

Labour shortages lead to higher prices for consumers. Service fees for home repairs have surged, and restaurants have raised menu prices to cover increased labour and other rising costs. These impacts are felt daily by Canadians across the country.

Productivity and Competitiveness at Risk

With businesses paying more for labour but not seeing matching gains in productivity, Canada’s competitiveness suffers. Persistent shortages threaten to erode economic growth and make it harder for Canadian firms to compete globally.

A Nationwide Challenge

Ultimately, the skilled labour shortage affects everyone—through higher costs, delayed projects, and slower economic growth. Addressing it is essential for Canada’s long-term prosperity.

Conclusion: Turning Crisis into Opportunity

The skilled labour shortage is the #1 problem facing contractors nationwide, but it’s also a call to action. By building strong relationships with trade schools, fostering a standout workplace culture, offering creative benefits, embracing labour mobility, and investing in training, you can attract—and keep—the great talent your business needs to succeed.

In a market where workers have choices, make sure your company is the one they choose—and the one they choose to stay with.