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Labour Scarcity Has Decoupled From Market Weakness

A softer residential market is not producing available trades. Ontario faces a projected shortfall of 27,300 workers by 2035, with the non-residential peak arriving as retirements accelerate.

August 28, 2026 · Ontario, Canada

BuildForce Canada's 2026 to 2035 outlook puts Ontario's total hiring requirement at roughly 126,100 workers against approximately 92,000 retirements, leaving a projected shortfall of about 27,300. Non-residential employment is forecast to grow across the period and peak around 2029 and 2030 on transit, utilities and healthcare work — the same window in which retirements accelerate.

The current data shows the same tension. Ontario's construction unemployment rate improved to five per cent over the summer, which is effectively full employment for the trades, even as residential starts fell and CMHC forecast a multi-year contraction in housing starts through 2028. More striking is the age profile: workers under thirty declined by roughly 24,400 year over year while workers over fifty-five rose. The entry pipeline is narrowing as the demand peak approaches.

The planning consequence is direct. Durations set from historical productivities assume a crew that can actually be staffed. Where the trade market is tight, the same activity takes longer with a less experienced crew, and the effect compounds through a congested sequence. A schedule baselined today for a 2029 or 2030 completion should carry an explicit labour availability contingency rather than a general inflation allowance standing in for one.

This matters on the claims side as much as the planning side. A disruption claim that ignores the claimant's own staffing constraints will not survive scrutiny, and a baseline that ignored them was never achievable in the first place.

What we recommend

  • Model crew ramp-up and learning curves instead of flat productivities.
  • Carry labour availability contingency explicitly on work landing in 2029 and 2030.
  • Track achieved output weekly so productivity drift is visible early.
  • Separate market-driven productivity loss from employer-caused disruption.

Commentary prepared by Elite Analytics Inc. for general information. It is not legal advice.

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