Labour Pulse – August/September 2025 Edition
Labour Market Trends
Cooling Job Market Nationally: Canada’s labour market showed clear cooling over the summer. August saw a net loss of 66,000 jobs nationwide – the second monthly drop in a row – pushing unemployment up to 7.1% (the highest since 2016, outside pandemic)canada.constructconnect.com. July had already seen a 41,000 job decline (unemployment 6.9%). Construction actually bucked the trend in August, adding 17,000 jobs (+1.1%) after a dip in Julyroberthalf.comroberthalf.com. Wage growth remains moderate: average hourly earnings rose ~3.2% year-over-year in Augustcanada.constructconnect.com, roughly on par with inflation, suggesting limited real wage gains for workers.
British Columbia Snapshot: B.C. followed the national trend with two straight months of job losses. Approximately 16,000 jobs were shed in July and again in August (a ~0.5% drop each month)roberthalf.com. The provincial unemployment rate rose from 5.6% in June to 5.9% in July, then 6.2% in Augustroberthalf.comroberthalf.com. Notably, construction employment in B.C. jumped +11,400 in August (≈+4.4%), along with +5,700 in manufacturingworkbc.ca, even as sectors like education (-10,500) and health care (-10,400) saw steep lossesworkbc.ca. This divergence suggests skilled trades demand is holding firm despite an overall employment dip. B.C.’s average wage hit ~$36.31 (up 3.2% y/y)mycrestonnow.com, but with persistent cost-of-living pressures, labour groups warn that pay needs to keep pace to attract talent.
Labour Supply vs Demand: Signs point to the labour supply catching up to demand in construction. Unemployment among construction workers has averaged over 8% in 2025 – higher than the overall workforce – indicating more tradespeople availablecentreforfuturework.ca. Similarly, job vacancy rates in construction have plummeted from over 7% of positions in 2022 to around 3% todaycentreforfuturework.ca. As economist Jim Stanford observes, “shortage of jobs is currently a bigger problem in construction than shortage of workers”centreforfuturework.ca. In practical terms, contractors are finding it a bit easier to hire now than a year ago, as the post-pandemic “overheat” cools. However, this window could prove temporary if upcoming projects absorb the available workforce.
Regional Variations in B.C.: The employment picture varies widely across the province. Regions like Vancouver Island and the Cariboo saw unemployment jump significantly year-over-year, while others improved. A snapshot of B.C.’s regional jobless rates
| Region | Aug 2025 | Aug 2024 |
|---|---|---|
| British Columbia (overall) | 6.3% | 5.8% |
| Vancouver Island/Coast | 6.0% | 4.0% |
| Mainland/Southwest (Metro Van) | 6.6% | 6.3% |
| Thompson–Okanagan | 5.1% | 5.8% |
| Kootenay | 5.8% | 7.0% |
| Cariboo | 7.2% | 4.9% |
| North Coast & Nechako | 5.9% | 7.6% |
| Northeast (Peace Region) | 8.2% | 6.2% |
Interpretation: Southern regions (Mainland/Southwest) held relatively steady, while Vancouver Island’s rate spiked to 6.0% (from an ultra-low 4.0% a year ago). The Northeast hit 8.2%, highest in B.C., reflecting a slowdown in oil/gas or major project activity there. In contrast, Kootenay and North Coast regions saw unemployment drop over the year, suggesting stronger labour demand in mining, forestry or localized projects. These regional swings underscore the importance of local labor market knowledge – employers in high-unemployment areas may find more candidates available, whereas in regions still running hot, competition for skilled workers remains fierce.
Policy & Project Developments
Fast-Tracking Major Projects (Bill C-5): In late June, the federal “One Canadian Economy” legislation (Bill C-5) received Royal Assent, ushering in measures to streamline infrastructure approvals and labor mobility. Part I of C-5, the Building Canada Act, creates a “one project, one review” framework for projects deemed to be in the national interest. Ottawa is now consulting provinces, territories and Indigenous leaders to identify an initial list of such nation-building projectscanada.cacanada.ca. The goal is to complete federal environmental and regulatory reviews within ~2 years for these priority projects, by focusing reviews on “how to get the project built, instead of whether it should be built”canada.ca. A dedicated Major Projects Office will coordinate efforts, and a single set of binding conditions will be issued per project (replacing the multilayered, drawn-out assessments of the past)canada.cacanada.ca. This could significantly accelerate timelines for big construction initiatives – from transit lines to energy facilities – especially ones that strengthen Canada’s economic autonomy or clean-energy transition.
Red Seal Mobility Boost: Part II of Bill C-5 enacts the Free Trade and Labour Mobility Act, which cements the principle that a worker certified for a trade in one province/territory is automatically recognized federallycanada.ca (without needing any redundant federal credential). In practice, this reduces barriers for tradespeople to work on projects under federal jurisdiction (ports, airports, etc.) and complements existing Red Seal interprovincial standards. Provinces are also moving to ease mobility: Ontario just rolled out new “As of Right” rules that, starting Jan 1, 2026, will let certified out-of-province workers start jobs in Ontario within 10 business dayscanada.constructconnect.comcanada.constructconnect.com of applying, rather than waiting months for registration. Over 50 regulated occupations (from electricians and plumbers to architects and engineers) are covered. This Canada-first approach – breaking down labour mobility walls – has broad support among industry and regulators as it helps get the right skills to job sites faster. (Notably, safety and local code knowledge will still be ensured during the streamlined process.)
Infrastructure Investments & “Buy Canadian”: Facing a potential economic slowdown and disruptive U.S. trade policies, governments are leaning into infrastructure and industrial projects:
Federal Tariff Response: Prime Minister Mark Carney (in office since this summer) announced a $5 billion fund to support industries hardest-hit by U.S. tariffscanada.constructconnect.com. The fund will help companies pivot to new products/markets and retain skilled workers in Canada – with steel, lumber, autos, and aluminum firms prioritizedcanada.constructconnect.com. Alongside, Ottawa introduced a “Buy Canadian” procurement policy requiring federal projects (initially in defense and construction) to use Canadian-made steel and softwood lumbercanada.constructconnect.com. These measures, aimed at bolstering domestic supply chains, are expected to spur new manufacturing facilities and plant retrofits – and, by extension, construction activity to build them. The Carney government also signaled an “unprecedented acceleration in home building” is comingcanada.constructconnect.com to address housing affordability, on top of nation-wide investments in trade corridors, clean energy, and defense infrastructure. Bottom line: many large projects are on the horizon, from EV battery plants to renewable energy sites, which could tighten construction labour demand in the next 1-3 years.
Provincial Initiatives: In B.C., the province has fully implemented SkilledTradesBC certification (reinstating compulsory trade credentials for at least 10 trades) to improve quality and safety. The B.C. government last year committed $150 million over three years to double the number of registered apprentices – from ~26,000 to 50,000 by 2027canada.constructconnect.com – to meet future needs. (BuildForce Canada projects B.C. will need 52,600 additional construction workers by 2032canada.constructconnect.com, due to retirements and new projects.) That funding is now flowing into training seats, new union training facilities (like the LiUNA/Teamsters center in Chilliwack), and outreach to underrepresented groups in the trades. Other regions are doing similar: e.g. Alberta recently announced funding to expand trade school capacity, and Ontario’s Skills Development Fund (SDF) was topped up to a hefty $2.5 billion to turbo-charge skilled trades training amid the tariff/economic uncertaintyclac.ca.
Union & Bargaining Updates: Labor unions remain at the table to ensure workforce stability as demand shifts. The federal Bill C-5 explicitly writes “good-paying, unionized jobs” into major project plansbuildingtrades.ca – a win lauded by Canada’s Building Trades Unions (CBTU). Over the summer, several new union contracts in construction were ratified with solid but manageable wage increases. For example, a CLAC agreement for B.C. heavy civil construction workers delivered an immediate +5% wage hike, followed by +3% in 2026 and +3% in 2027clac.ca, plus benefits and pension boosts. In Alberta, 95 unionized Aecon Civil Construction employees secured industry-leading pay rates with their new 29-month contract, including +2% annual raises for 2025–27 (on top of already high base rates)clac.ca. These deals reflect an easing of inflation – gone are the 5%+/year increases of the inflation spike – but also a recognition that competitive wages are crucial to attract and retain skilled trades, especially in remote or high-demand project locations. Meanwhile, collective bargaining in other sectors (e.g. BC public service, hospitality) indicates workers are prioritizing job security and cost-of-living adjustments, which could influence trades sectors as well.
Training, Certification & Workforce Initiatives
Surge in Apprenticeship & Skills Funding: Governments and industry are pouring resources into training the next generation of tradespeople. Ontario recently announced $12.9 million for the Waterloo region to help 50,000 workers train and upskill in skilled trades, manufacturing, and techclac.ca. This is part of the expanded SDF, as noted, which among other grants gave $723,600 to CLAC (a multi-sector union) to grow its Group Sponsor Program for apprenticesclac.ca. That program mentors apprentices through the full journey to certification – from signing up to completing their Red Seal – and helps small employers take on apprentices without undue bureaucracyclac.ca. Likewise, federal programs like Union Training and Innovation Program (UTIP) continue to co-fund new training equipment and curriculum updates at union-run training centers across Canada. In short, if you’re looking to hire apprentices, there’s new funding out there (wage subsidies, tax credits, etc.) for employers who provide training opportunities.
Immigration Pathways for Trades: To bolster the workforce, Canada has also tweaked immigration rules. As of Feb 2025, foreign nationals in eligible construction trades apprenticeships can complete their classroom training in Canada without needing a study permitcanada.ca (for a two-year pilot period). This means an apprentice already working here on a work permit can attend trade school (technical training sessions) seamlessly, making it easier for them to advance and become certified journeypeople. Additionally, Canada’s Express Entry system now features category-based invitations – skilled trades workers are a targeted category in 2023–2025, giving qualified trades (like carpenters, plumbers, welders) a leg up in obtaining permanent residency. And in B.C., a new Provincial Nominee Program stream is in the works specifically for construction and transport sector workers. All these efforts recognize that immigration will be key to offsetting retirements – especially as many veteran tradespeople hit their 60s – and to meeting ambitious infrastructure and housing goals.
Certification & Safety Updates: With SkilledTradesBC’s compulsory certification in effect for trades such as Electrician, Plumber, Refrigeration Mechanic, etc., there’s a renewed emphasis on up-to-date credentials. Journeypersons are now required (or in the final phase-in) for these designated trades, and the province is rolling out standardized Level 2 and 3 exams for heavy mechanical tradesskilledtradesbc.ca to ensure consistent competencies. For employers, this means you’ll want to verify that workers’ certifications are current – and encourage uncertified long-time workers to challenge the Red Seal exam or register as apprentices if needed. On the safety front, WorkSafeBC continues to update regulations (e.g. new crystalline silica dust exposure rules and tower crane guidelines) – training programs are incorporating these, so expect new hires to have up-to-date safety knowledge.
Industry Commentary: Labour economists note that Canada’s construction workforce appears to be in a transition period. The Centre for Future Work argues that the narrative of an acute skilled labour shortage is overstated – recent data show unemployment rising and vacancies falling in tradescentreforfuturework.ca. However, analysts also warn this could flip again when stimulus-funded projects and private investments ramp up. BuildForce’s long-term outlook still flags a significant replacement demand due to retirements (an estimated 1 in 5 construction workers set to retire by 2032). In the near term, some economists foresee a mild recession or slowdown which “may give the trades ecosystem a breather” – allowing training to catch up and supply to recalibrate – before the next boom. Translation: 2025 is a critical year to invest in training, streamline hiring, and shore up your core crew, so you’re ready for the forecasted upswing in project volume.
What It Means for Contractors and Project Leads
Plan Ahead, Using Today’s Slack to Prepare for Tomorrow’s Crunch: The recent rise in unemployment and easing of skill shortages is breathing room. Take advantage of the current larger talent pool – if you have projects coming up, consider hiring ahead or upskilling your team now. It’s notably easier to find qualified tradespeople today than it was a year ago, but with multiple mega-projects on the horizon (and billions in public works spending in the pipeline), this window could close. “Surplus labour” conditions likely won’t last once infrastructure builds and housing accelerations kick in (especially with new “tariff-proof” factories, energy projects, and transit expansions slated to launch). Lock in the talent while available.
Verify Credentials and Leverage Mobility: As regulatory changes take effect, ensure your workforce meets the new certification requirements. Red Seal or equivalent certification isn’t just a legal box to tick – many clients and contracts (especially government-funded ones) now mandate Red Seal certified trades on site for quality and safety assurance. Encourage any experienced workers without papers to get certified (challenge the exam or finish their apprenticeship) – programs exist to help them. On the flip side, the easing of mobility barriers means you can recruit from across Canada with less hassle. For example, hiring a journeyperson from, say, Ontario or Alberta to work in B.C. is simpler with mutual recognition and upcoming “As of Right” rules. Cast a wider net in your recruitment – the talent you need might be one province over and now much more willing to move for work.
Budget for Moderate Wage Growth, and Pay Strategically: The days of double-digit wage increases are likely behind us, but don’t expect wage pressures to disappear. Union agreements are still delivering in the range of 3–5% annual increasesclac.caclac.ca, and even non-union shops should budget for competitive raises to keep good people (especially with inflation running ~3-4% this year). In many cases, wages are the key to retention – as evidenced by surveys showing over half of employers’ hiring troubles come from not meeting workers’ pay expectationscentreforfuturework.ca. Review your pay rates against industry benchmarks; if you’ve been losing folks to higher-paying competitors, consider an adjustment or bonuses for critical roles. Also, be ready to discuss job security and working conditions – after a turbulent few years, tradesworkers value employers who offer stable, respectful workplaces. Little things (like flexibility for apprenticeship training leave, or recognition of safety records) can set you apart.
Invest in Training and Apprentices – it’s Paying Off: With so many grants and programs available, there’s never been a better time to bring on apprentices or upskill your crew. Government funding can offset the costs of training programs, and new initiatives (like the SDF in Ontario and B.C.’s doubled apprenticeship seats) mean more support for employers. An apprentice hired today is a ticket to a future journeyperson loyal to your company. Many contractors are also cross-training their existing employees (e.g. enrolling carpenters in formwork specialization courses, or level-ing up a laborer to a heavy equipment operator) to fill skill gaps internally. This not only builds capability in-house but also boosts morale – people see a career path, not just a job. Remember, every big project coming down the line will demand crews with the right tickets and experience. Investing in your workforce now is the surest way to avoid being left short-handed or out-bid for labor when competition for trades heats up again.
In summary, the late summer 2025 labour pulse shows a market in momentary equilibrium – a bit of slack that wise contractors will use to their advantage. By staying proactive on hiring, credentialing, and training – and maintaining a people-first approach – you can weather current economic headwinds and set your team up for success as the next wave of opportunities arrives. The companies that plan workforce needs now, with an eye on both the present lull and the coming surge, will be the ones best positioned to deliver projects on time and on budget in the months ahead.
