Skilled trades shortage looms in British Columbia

By Mata Press Service

Canada's current patchwork of immigration pathways is poorly designed to meet the growing skilled trades shortage in British Columbia which needs to recruit nearly 52,600 tradespeople over the next decade, states a new report.

The new research from the BC Building Trades (BCBT) shows Canada's immigration system has not only failed to address construction labour shortages, but is also making the situation worse for workers and the industry.

This poorly designed immigration patchwork has led to a massive increase in the use of the Temporary Foreign Worker Program (TFWP), said the organization, which represents 18 craft construction unions and more than 40,000 unionized construction workers in B.C.

The use of TFWs has become a permanent fixture of B.C.'s construction industry with 7,160 of these workers brought in between 2019 and 2023, said BCBT.

While TFWs represent 2.1 percent of the workforce across Canada, they are disproportionately prevalent in B.C. construction, making up 4.7 percent of the workforce.

The use of the broader economic immigration class and other pathways to address the construction labour shortage has been similarly disappointing.

The Federal Skilled Trades Program (FSTP) was designed specifically to address the construction labour shortage by giving express entry to construction workers.

It has failed to achieve that goal, said the BCBT in its report.

Vinay Chaudhary from Dev Immigration Services in Vancouver said, "Given the urgent need to recruit nearly 52,600 tradespeople in B.C. over the next decade, optimizing immigration pathways is crucial. The current reliance on the Temporary Foreign Worker Program (TFWP) isn't sustainable. Instead, enhancing the Federal Skilled Trades Program (FSTP) could be a more permanent solution."

"Collaborate with vocational schools and training centers in both Canada and abroad to create pathways for graduates to enter the Canadian workforce directly." Vinay Chaudhary gave one example of how to achieve this.

Between 2019 and 2023, the FSTP welcomed only 240 permanent resident construction workers to B.C.

At an average of 48 per year, that represents only .2% of economic immigrant migrations.

When it comes to permanent residency, only 7,000 tradespeople have obtained permanent residency in B.C. through economic class immigration streams. This rate is far below B.C.'s labour needs and will not provide the permanent skilled trades workforce the province requires to build much-needed housing and infrastructure.

"We are facing a significant labour crunch, and while Canadian construction workers should have first access to available jobs, we recognize the need for new entrants to help to meet the growing need for skilled workers," said BC Building Trades executive director Brynn Bourke. "Instead of ignoring the problem in construction, we're calling on the Government of Canada to put a special focus on immigration in B.C."

The use of TFWs has become a permanent fixture of B.C.'s construction industry with 7,160 of these workers brought in between 2019 and 2023. While TFWs represent 2.1 percent of the workforce across Canada, they are disproportionately prevalent in B.C. construction, making up 4.7 percent of the workforce.

According to Charanjit Kaur, an expert in the labor market from Iconic Immigration, the Canadian government needs to take several strategic steps to align immigration pathways with the construction industry's labor needs.

Charanjit Kaur further said the TFWP needs to be updated to ensure fair wages and better working conditions for temporary workers. This includes revising the prevailing wage definition and methodology.

"Too many contractors have become hooked on cheap temporary labour to boost their profits," said Doug Parton, business manager of Ironworkers Local 97.

"As they abuse the TFW system, Canadian workers are paid less and shut out of jobs that should be theirs. That's not right. The TFW program is hurting Canadians and migrant workers too. The entire system needs an overhaul."

To address the labour shortage and the failures of Canadian immigration and the Temporary Foreign Worker Program, the BC Building Trades is calling for action, including the following:

• An independent audit to investigate the mismanagement of the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP) and a prohibition of activity on construction trades through the IMP and the TFWP until such an audit is complete.
• A significant increase in the use of the Federal Skilled Trades Program.
• The exclusion of employers from the TFWP who do not have a demonstrated history of participating in the apprenticeship system.
• An update to the temporary worker program by the federal government including a revision of the definition and methodology for determining the prevailing wage.

Key Insights from the BCBT report.

■ B.C.'s construction industry needs to recruit 52,600 additional workers between 2022 and 2032 to keep pace with labour demands and avoid a deficit of 18,700 construction workers.

■ Nearly 30 percent of labour supply for construction will need to come through immigration between now and 2032.

■ Between 2016 and 2021, just 2 percent of primary immigration applications held apprenticeship certificates compared to 76 percent who were university educated.

■ Over the last five years, just 7,020 tradespersons have obtained permanent residency (PR) in B.C. through economic class immigration streams. Only 44,000 tradespeople have been welcomed through those streams Canada-wide.

■ More workers are coming in through temporary programs; between 2019 and 2023, 7,160 temporary work permits were approved across just 11 construction trades in B.C.

■ The Federal Skilled Trades Program is particularly underutilized. It accounted for less than 0.2 percent of economic immigration admissions to B.C. in 2023, with only 270 workers admitted through the program in total between 2019 and 2023.

■ Temporary workers make up a disproportionate share of the construction industry in B.C. In 2021, they accounted for 4.7 percent of the provincial workforce which is more than twice the Canada-wide share of 2.1 percent.

■ In 2023, temporary work permits accounted for 9 percent of the B.C. workforce for concrete finishers, 6 percent for insulators and carpenters, and 3 percent for steamfitters, pipefitters and sprinkler fitters.

■ The number of valid temporary work permit holders in Canada increased from 250,900 in 2010 to 1,270,360 in 2023. Those numbers do not include people working on study permits. This represents a more than 500 percent increase.

■ Temporary workers, most without a pathway to citizenship, now account for more than 6 percent of Canada's entire workforce.