October’s modest employment gains driven by increases among young, and female workers
Construction’s employment and labour force numbers both rose by less than one percent over the last 12 months, with a significant gain among both females and young workers driving much of the change.
Statistics Canada’s Labour Force Survey (LFS) data for construction for October 2024 finds both the labour force and employment increased by 0.6% compared to 12 months earlier. The former rose by 10,400 workers, and the latter by 9,400 workers. The two factors combined to raise the industry’s unemployment rate by one-tenth of a percentage point, from 3.7% a year ago to 3.8%.
Construction reported a significant increase in the number of females both employed and seeking employment in the construction industry over the past 12 months. Employment among females rose by 3.1%, while the female labour force (those employed and seeking employment) grew by 3.3%. Those figures compare to gains of just 0.2% among males in both labour force and employment numbers over the past 12 months.
Gains were also notable among all workers aged 15 to 24 years, where employment rose by just under 30% nationally, by 38% among young women, and by 29% among young men. By contrast, employment fell in both older cohorts – i.e., those aged 25 to 54 years and those aged 55 years and over.
Just as importantly, the labour force and employment gains among the younger cohort of workers were significantly larger than the losses reported in either of the older cohorts. This suggests that the industry’s ongoing efforts to promote construction career opportunities to youth may be bearing fruit.
Labour market trends were positive across almost all provinces in October compared to 12 months ago, with only Newfoundland and Labrador (-7.8%), Ontario (-4.4%), and Manitoba (-0.9%) reporting employment contractions. Gains were greatest in Prince Edward Island (19.3%) and Nova Scotia (15.9%), with the largest absolute gains reported in Alberta (+12,300 workers) and Quebec (+10,000 workers).
Among young workers aged 15 to 24 years, employment increased in all provinces except Newfoundland and Labrador and Manitoba. Ontario reported the largest absolute gain at +22,700 young workers, while Saskatchewan (72.3%), Prince Edward Island (55.6%), and Alberta (48.9%) all reporting significant percentage increases in employment among this group.
British Columbia, meanwhile, reported the largest gain in employment among females over the past 12 months at +6,100 workers, or 20.3%.
Finally, with the exception of Newfoundland and Labrador, unemployment rates across the provinces varied from a high of 4.8% in Prince Edward Island to a low of 2.7% in Manitoba. Most provinces reported rates of 4.0% or lower.
Ontario construction labour markets constrained by fewer new housing projects
With 10 months of labour market information now available from Statistics Canada, Ontario stands out as the province that has seen construction employment and labour force contract each month since the beginning of the year. Year-over-year declines in the province range from 2% in January to 7% in August.
The data suggest that much of these declines are concentrated in the residential sector and are offsetting good gains in non-residential activity. While it is early to tell, lower levels of home building in the province may be impacted by federal announcements to cap non-permanent residents at 5% of Canada’s population and reduced immigration targets for the country as a whole.
This article was written by Klayton Gonçalves, the senior economist and head of business intelligence for BuildForce Canada. It first appeared on the organization’s Labour Market Corner blog on November 19.