Alberta – and, indeed, all of Canada – is facing a deficit in skilled trades workers. From welders and electricians to mechanics and technicians, businesses are struggling to find the talent they need.
While this issue is not new, the need to address it is growing more urgent. Surging population growth has driven demand for housing and infrastructure. At the same time, businesses are looking to expand investment in resource development, renewable energy, carbon capture, and other major projects.
If Alberta can’t find enough skilled workers, not only will we be unable to build what we need, we’ll also struggle to repair and maintain the infrastructure we already rely on, from AC units to elevators to airplanes. Put simply, if left unaddressed, skilled trades shortages will result in cancelled projects and missed opportunities and investment. That, in turn, will hamper economic growth, undermine our global competitiveness, and lead to an even higher cost of living in Canada.
Put simply, if left unaddressed, skilled trade shortages will result in cancelled projects and missed opportunities and investment.
Is this a supply problem or a demand problem?
Job vacancies tell a story of unfilled positions in key occupations. But is this because we have too few people in trades occupations relative to provincial need? Or is it that the need for skilled tradespeople is growing?
Turns out it’s both:
Demand:
Growing demand for skilled tradespeople
Our research shows that the number of job postings in the category of “trades, transport and equipment operators, and related occupations” rose by 85% in Alberta, compared to 21% in other large provinces.
Trades-related jobs make up a notably larger share of the workforce in Alberta than they do elsewhere in the country.
Supply:
Too few workers available
At the same time that demand for skilled trades occupations is increasing, the supply of people available to fill those positions isn’t keeping up.
There are two factors at play here: a rapidly aging workforce is approaching retirement; and not enough new, qualified individuals are coming in to replace them.
What are some of the factors contributing to the issues facing skilled trades labour supply?
- Bias against the trades leading to low enrolment
- Too few resources to deliver trades classes to students
- Low completion rates in skilled trades programs
- Underrepresentation of women and immigrants
- Regulations stifling the productivity of the labour force
- Inconsistent and unstable working conditions
- Wage growth in the skilled trades
In the short term, Alberta needs more migrants from outside the province to fill these positions. Longer term, we need to increase enrolment levels and completion rates of skilled trades programs within the province.
Unless these, and other, hurdles are overcome, labour supply issues in the skilled trades will persist.
Read more publications supporting our Skilled Trades Task Force, here.