Canada’s Construction Industry: Labour report (October 2025)

Canada’s Construction Industry: Labour Trends and Investment Outlook (October 2025) - BuilderJobs.ca

Canada’s Construction Industry: Labour Trends and Investment Outlook (October 2025)

Published: Nov 11, 2025

The Canadian construction industry continues to show resilience through 2025, even amid tight labour markets and fluctuating housing investments. Based on the latest Statistics Canada data, employment levels remain strong, unemployment is trending downward, and housing investment is stabilizing after several years of volatility. Below is a summary of what the latest numbers reveal.

1. Construction Employment Holding Steady Despite Cycles

The construction labour force in Canada has remained above 1.5 million workers since mid-2024, with employment tracking closely behind total labour force numbers.

After a seasonal dip during early 2024, the market rebounded strongly through late 2024 and early 2025. The unemployment rate dropped from nearly 8% in early 2025 to around 4% by fall 2025, highlighting strong hiring momentum in construction trades.

Key observations:

  • Labour demand continues to outpace new entrants into the trades.
  • Employment remains tightest in Ontario, Alberta, and British Columbia.
  • The spring–summer period (April–August) consistently marks peak hiring activity.

This stability in employment reflects continued infrastructure projects, housing starts, and energy-sector investments across the provinces.

2. Investment in Residential Construction Shows Recovery Signs

After a downturn in 2024, residential construction investment has started to recover, especially for single-family homes, which rose to nearly $7.8 billion in August 2025 — a solid increase from earlier lows.

Multi-unit dwellings remain the larger share of spending, averaging around $9 billion, reflecting ongoing demand for apartments and condos in urban areas like Toronto, Vancouver, and Montreal.

Notable trends:

  • Multi-unit housing projects continue to dominate new construction starts.
  • Rising borrowing costs have slowed detached home projects but boosted rental and infill developments.
  • Government-backed affordable housing initiatives are sustaining market activity.

3. Regional Investment Trends: Canada’s Construction Map (August 2025)

Across the provinces, Canada’s total residential construction investment reached $16.0 billion in August 2025, up slightly (+0.1%) from July.
While national growth is modest, the picture varies widely by region:

  • British Columbia: +1.5% growth to $2.6B, driven by large-scale housing developments in Metro Vancouver.
  • Alberta: +3.4% to $1.8B, showing strong recovery linked to workforce expansion.
  • Manitoba: +10.1%, one of the highest provincial increases.
  • Ontario: Slight dip (-0.8%) but still Canada’s largest construction market at $5.7B.
  • Atlantic Canada: Mixed results, with Newfoundland and Labrador (-2.3%) and Nova Scotia (-2.0%) both down slightly.

By segment, condos and rental apartments account for 54% of total investment, reflecting a shift toward high-density and multi-family living, while single-family homes make up about 34%.

4. What It Means for Construction Workers and Employers

For tradespeople and employers, these trends translate to strong hiring conditions through 2025:

  • Skilled trades shortages persist — electricians, carpenters, plumbers, and HVAC technicians remain in top demand.
  • Apprenticeships and on-the-job training programs are expanding across provinces.
  • Seasonal work may become steadier year-round due to government infrastructure funding and new private developments.

For employers, labour competition will stay intense — especially for Red Seal–certified workers and foremen with experience in large-scale residential or mixed-use projects.

5. Outlook for 2025-2026

Heading into 2026, the industry outlook remains cautiously optimistic:

  • Stable interest rates could boost residential starts again by mid-2026.
  • Labour shortages will persist unless more apprentices enter the pipeline.
  • Provincial infrastructure projects (roads, transit, and green energy) will continue to create job opportunities across Canada.

Overall, Canada’s construction sector is holding firm — with strong employment, active investment, and clear signs of renewal after several turbulent years.

Sources:

Statistics Canada. Tables 14-10-0022-01 and 34-10-0066-01.
Canada Construction Industry Labour Force Latest Report (October 2025)
Investment in Residential Building Construction (August 2025)