Cover Stories: Wrestling with Canada’s ongoing labour shortage
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Welcome to Cover Stories, our latest newsletter that digs deep into an important topic. This month, associate editor Macenzie Rebelo tackles Canada's labour shortage and the strategies companies are employing to deal with the problem.
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In Canada, the aggregate and roadbuilding sectors are experiencing a significant labour shortage, yet the need for more roads, highways and bridges persists. 

With the lack of available labour, the roadbuilding industry is unable to get projects done efficiently. However, this is not a problem specific to roadbuilding, as the construction industry as a whole is experiencing a major labour shortage. According to Statistics Canada, there are large vacancies in the skilled trades at a whopping 49.5 per cent. With fewer qualified applicants to fill the necessary roles, there is significant pressure on the industry to catch up. 

“It’s a tough balancing act between finding people to help fill gaps, with the infrastructure needs that come with such rapid growth,” says Rob Fragoso, executive director of Alberta Sand and Gravel Association (ASGA). “All that infrastructure relies on sand and gravel, and heavy construction, which relies on labour, and that’s the problem.”

A CANCEA report commissioned by the Ontario Road Builders’ Association (ORBA) found that traffic gridlock in the Greater Toronto and Hamilton Area negatively impacts the region by $44.7 billion per year due to lost economic productivity. 

Walid Abou-Hamde, CEO of ORBA, is urging the Ontario government to take immediate action and provide funding to get projects done faster. 

The Canadian Construction Association (CCA) and ASGA are also asking the federal government for more support amid the labour shortages. “Currently, there are 39,000 open positions,” says Rodrigue Gilbert, CCA president. “Meaning today, right now, 39,000 workers are needed to fill vacancies.” 

Generational attitudes one barrier in finding labour

Although provincial governments are investing more into trade programs, career fairs and co-op placements, there are factors mitigating the labour shortage that aren’t being addressed. Roadbuilding jobs are primarily seasonal, explains Fragoso. “Many people prefer work that is permanent rather than seasonal, and work that is done indoors.”  

Another challenge Fragoso suspects is the generational attitude towards the industry. “This shouldn’t be construed negatively,” he explains. “Younger workers tend to value flexible work arrangements and higher wages, and there’s nothing wrong with that. However, many of the jobs in the sector can’t offer the flexibility they might want, and while the jobs do pay well, some want more, and that’s not always possible given budget constraints.” 

Often construction companies will turn to temporary foreign workers (TFW) to counteract the overwhelming workload and lack of candidates.

“This is a Canada-wide issue. This is a G7 issue. The birth rate is in a decline and the only way to sustain our workforce is through immigration,” says Steven Crombie, senior director of public affairs at ORBA. “One of our messages to the federal government is, ‘we do need more newcomers to Canada but we need to balance across the newcomers’ so they are able to work in-demand industries.”

The Labour Market Impact Assessment (LMIA) is a document that allows Canadian employers to hire TFW. It is mandatory for a TFW to have an approved LMIA to work. The issue is, roadbuilding is not considered an ‘in-demand’ industry, such as HVAC or carpentry. According to Crombie, ORBA is lobbying the federal government to adjust the immigration system so that road building is considered an in-demand industry. Similarly, previous experience is required for a TFW to work in a specific sector. “There is nothing to demonstrate on a permanent resident application that you have worked on a road crew somewhere else in the world,” says Crombie. He explains that most trades in roadbuilding have voluntary certification, so it is difficult to demonstrate on an immigration application that the applicant has the requisite skills for the industry.

Crombie believes the province of Ontario has done a good job promoting the trades as career paths, especially to students, but, it has not led to an increase of new workers in the industry itself. “Roadbuilding trades are considered among less visible trades,” he says, adding that historically there has been more exposure for HVAC technicians, electricians and other trades. “We would like to see that amended to recognize those skills.”

Fragoso echoes Crombie’s sentiment, “A greater emphasis on academic streams leading to more people entering labour roles would be worth considering.” 

Similarly to Ontario, Alberta does support the skilled trades through funding but it is not enough. “A meaningful solution would be for governments to boost programs that either assist with labour costs or provide tax benefits to companies as a partial offset for seasonal staff.” 

Both Crombie and Fragoso believe that the provincial governments should prioritize labour shortages, but they recognize that this is not always possible due to budget and other funding concerns.

Programs addressing industry are needed

In contrast, Gilbert believes all levels of the government need to find solutions that specifically address the construction industry. “The point system doesn’t help us attract foreign work,” he explains. Gilbert believes more policies need to be established for construction labour shortages besides the Federal Skilled Worker program. “The program is not well designed.” Gilbert shares that the CCA has implemented its own campaign “Talent Fits Here” to address the labour shortage and encourage the youth and underrepresented groups to work in the trades. “We are working on changing the perception of the trades as not a good career path,” says Gilbert. “But this cannot all be done by us, it needs to be done locally, provincially and nationally.” 

For the time being, aggregate and roadbuilding companies are left to their own devices to address the labour gap. Like the CCA, ORBA and ASGA offer scholarships and programs to encourage younger generations to get involved in the trades. Gilbert feels there may be an unintentional stigma around the skilled trades, specifically from parents, that discourages youth from getting involved. 

Michael Auchincloss, associate dean at the School of Applied Technology Humber, has seen a large spike in engagement from the youth over the last few years. “At the winter and fall intake, I had never seen numbers like that before,” he says. “So, the interest is there.”  

However, keeping them interested may be the challenge, explains Auchincloss. Due to roadbuilding being a bit more of a niche sector, he suggests companies in the industry create pathways from secondary schools or even elementary schools, where students can receive hands-on experience working in the industry. 

“Create interactive experiences, where they can ask questions,” Auchincloss says. “The younger generation has a different way of thinking, a different mindset. They ask very clever questions.” 

Although it may be difficult for the roadbuilding and aggregate sectors to showcase to students exactly what they do, there are still opportunities to make connections at job fairs, open houses and apprenticeship expos. 

“It is also important to let students know their skills are transferable,” says Auchincloss, who explains many students enrolled in one trade end up switching out for another. “Have students understand the skills of the trade [roadbuilding] so they may migrate into that industry.” 

Auchincloss echoes Crombie’s sentiment that the industry must continue to market itself to the younger generations. The future of road building depends on Canadian youth, especially with the lack of foreign trade workers filling the gap.

Macenzie Rebelo is the associate editor of Canadian Rental Service and Rock to Road. You can contact her at mrebelo@annexbusinessmedia.com.