Canada’s ambitious housing goals for 2030 are a critical step toward addressing the country’s growing population and the urgent need for affordable housing. With a target of constructing millions of new homes to meet demand, the path forward is far from easy. The challenges of delivering on these goals are complex, with labor shortages, a growing aging population, and the declining birth rates of future generations playing significant roles in the struggles facing Canada’s housing sector. But amid these challenges lies an opportunity—an opportunity for Canada to become a global leader in new, sustainable building technologies and systems, provided the country deploys the right labor strategies.
The Labor Crisis: A Shortage of Skilled and Unskilled Workers
One of the most significant barriers to reaching Canada’s housing targets is the labor shortage in the construction industry. According to the Canadian Home Builders Association, our country is facing a significant shortage of both skilled and unskilled labor, with over 130,000 skilled construction workers expected to retire by 2030, a number that will not be fully replaced by the influx of younger workers. The gap in skilled labor is exacerbated by the increasing complexity of construction projects and the need for specialized skills, particularly in green building technologies, building systems transformation, and sustainable construction practices.
However, it’s not just skilled labor that is in short supply. The sector is also struggling with a lack of unskilled workers who typically take on entry-level positions. This issue is particularly pressing given the high demand for housing construction. The aging workforce in Canada’s construction industry, coupled with the stagnating birth rates of younger generations, means that fewer people are entering the workforce to fill these positions.
The implications of this shortage are dire: projects are delayed, costs rise due to the increased demand for labor, and the housing goals set for 2030 risk being unattainable unless drastic changes are made in how labor is recruited, trained, and retained.
Upskilling and Reskilling: A Necessary Shift in Workforce Strategy
Addressing the labor crisis will require a robust focus on upskilling and reskilling the existing workforce. As more workers retire, the need for new entrants to the construction industry grows. However, it’s not simply about attracting more workers; it’s about equipping them with the skills necessary for the future of construction. This is where Canada can take the lead.
Given the increasing demand for sustainable, energy-efficient, and technologically advanced building methods, Canada’s workforce needs to be prepared for the jobs of tomorrow. Upskilling initiatives in areas like green construction, digital construction management, advanced robotics, and A.I. applications will be key to addressing the gaps in labor supply. Partnerships between governments, educational institutions, labour unions and private industry will be critical to providing training programs that ensure workers are equipped with the skills to meet evolving demands.
Additionally, promoting these opportunities to younger generations is essential. With a steady decline in birth rates, Canada’s future workforce will be smaller and may need to rely on targeted immigration to fill gaps. Targeted training programs within our secondary and post-secondary education systems will also need to be implemented that encourage our youth to consider careers in construction, and its specialty trades.
The Longevity Economy: Reimagining Canada’s Economic and Industrial Future
A critical aspect of the labor shortage problem lies in the intersection of Canada’s aging population and what’s been described as our emerging “longevity economy.” As the population continues to age, there is a fundamental shift in economic needs and labor markets. Older generations are living longer, which means there is a growing demand for healthcare services, retirement housing, and related industries that will require a significant labor force.
But this shift also means that fewer younger workers are entering industries like construction. For Canada to sustain its housing goals, it will need to find ways to draw on the potential of the longevity economy by keeping older workers in the workforce longer. This may involve offering retraining opportunities for aging workers to take on new roles in the construction industry, such as in the management of sustainable building projects or the implementation of new technologies that support the physicality of their craft.
At the same time, Canada needs to rethink how its industrial and economic strategies can adapt to an aging population. New technologies, such as automation and AI, could alleviate some of the pressure caused by labor shortages. By investing in these technologies, Canada has the opportunity to lead in the development of innovative building systems that reduce labor dependency while creating jobs that require a new set of skills.
Leading the Way: Canada’s Opportunity in New Building Technologies
Despite the many challenges, there is a clear opportunity for Canada to be at the forefront of the next wave of construction innovation. As the world increasingly moves toward sustainable and energy-efficient building solutions, Canada’s natural resources, technological expertise, and commitment to sustainability provide a strong foundation for leadership in this field.
Incorporating advanced building technologies, such as prefabricated modular homes, mass timber construction, and green building systems, can significantly reduce labor demands while increasing productivity and lowering costs. By embracing these innovations, Canada can address housing supply issues more efficiently, while also positioning itself as a global leader in the future of construction.
Canada has a unique opportunity to lead in the future of construction.
The road to meeting Canada’s housing goals by 2030 is undoubtedly challenging. The labor crisis, combined with an aging population and shifting economic needs, presents formidable obstacles. However, with a strong focus on up-skilling and re-skilling our workforce, attracting younger workers into construction, and capitalizing on the potential of new building technologies, Canada has a unique opportunity to catch-up on its housing targets but also to lead the world in the future of construction. Through smart strategies, Canada can turn its labor challenges into opportunities for innovation, sustainability, and economic growth in the years to come.
