b'NO EASY SOLUTIONS TOCONSTRUCTIONS UNPRECEDENTEDLABOUR FORCE CHALLENGESBILL FERREIRA, Executive Director, BuildForce CanadaC anadas construction sector isunemployment rate remains in record- industry with a shortfall of as many as experiencing unprecedented labourlow territory, and employment, at 1.5729,000 workers.force challengeswith no immedi- million, remains at near-historical highs.Complicating matters is recent ate relief in sight. Meanwhile, construction employers aredemographic data showing that the Measured by the value of building permitreporting near-record numbers of jobcohort of the population under 15 years activity and sectoral investment levels,vacancies, with job vacancy rates at recordof age (i.e., those poised to enter the demand for construction services islevels across the country. construction workforce in the next 15 approaching near-record levels. The latestAn Aging Population Createsyears) is shrinking as a percentage of data released by Statistics Canada showsDemographic Challenges the overall population. In 2001, that that building permit values through theIn our 20222027 Construction andcohort accounted for 19 per cent of the first eight months of 2022 are alreadyMaintenance Looking Forward reportpopulation; by 2021, it had declined to 15-per-cent higher than they were overissued last March, BuildForce Canada16 per cent.the same period in 2021. projected overall hiring requirementsMeanwhile, the percentage of those Investment in building construction,across the construction sector tonearing retirement age (i.e., people aged meanwhile, has been on a steady upwardnear 172,000 by 2027. Much of this50 to 64 years) has increased from 16 trend since October 2021. August datarequirement (approximately 156,000per cent in 2001 to 20 per cent in 2021. from Statistics Canada finds the value ofworkers, or 13 per cent of the currentLooking further ahead, the percentage of total investment at more than $21 billionlabour force) will be, and is currentlythose in the core working age group (aged (seasonally adjusted)by far that figuresbeing, driven by retirements. 25 to 49) declined by five percentage highest level ever. In the mechanical sector, the retirementpoints (39 per cent to 34 per cent) over picture is slightly more positive. Anthe same period.Its more than likely investment levelsestimated 18 per cent of the mechanical will continue to remain at or near recordtrades workforce (i.e., plumbers,All these indicators point to an underlying levels through 2023 as the economypipefitters, sprinkler installers and othertrend: Canadas population is aging continues to recover from the effects ofHVAC trades) is expected to retire overat a rate faster than can be sustained the COVID-19 pandemic, and as thethe next decade. The average for all tradesby younger demographics. For the Government of Canada continues its pushacross the country is 22 per cent. construction industry, this points to the toward decarbonizing the buildings sector. Typically, construction would look toneed to consider new solutions to an All this would be good news werereplenish its labour shortfalls by relyingalready-entrenched labour force challenge.the construction industry not alreadyon a steady supply of people aged 30Solutionscontending with complicated andand younger to replace retirees. Based onDomestically, the industry can expand multi-faceted labour force challenges.historical trends, the industry is expectedits recruitment beyond traditional Labour Force Survey data from Statisticsto draw an estimated 143,000 first-timerecruitment channels. This means Canada in September finds key metricsentrants by 2027. Compared to totalincreasing the industrys focus on the strained. At 3.1 per cent, the industryshiring requirements, this would leave therecruitment of women, Indigenous 34 www.mcac.ca'