Strong growth in residential activity in Nova Scotia drives construction employment demands higher to 2034

/EIN News/ -- OTTAWA, Ontario, March 31, 2025 (GLOBE NEWSWIRE) --

Construction activity in Nova Scotia recorded another strong year in 2024, with both the residential and non-residential sectors reporting gains in activity over the previous year. The former was elevated by gains in new-housing and renovation activity, while the latter saw strong levels of activity in both engineering construction and in the construction of industrial, commercial, and institutional buildings.

BuildForce Canada released its 2025–2034 Construction and Maintenance Looking Forward report for Nova Scotia today. The forecast calls for overall construction growth by 2034, with gains limited to the residential sector.

Residential construction investment levels are projected to grow into 2025 and are sustained into 2027 before increasing steadily to the end of the decade. Growth is driven initially by activity the new housing component, but as investment in this component declines in latter years of the outlook, residential renovations become the principal driver of residential construction investment in the province. By 2034, residential employment should be 21% higher than 2024 levels, with significant gains anticipated in employment relating to residential renovations and maintenance activities.

Non-residential construction investment levels, meanwhile, are projected to ebb and flow across the forecast period, in line with the timing of major projects. Investment slows initially as several key projects pass peak activity levels or conclude. It then rises to a peak in 2028 as core construction work begins on key projects such as the EverWind hydrogen project and is sustained by ongoing healthcare sector projects. Investment contracts into 2030 as these projects conclude. As a result of these factors, non-residential employment is projected to rise 9% above 2024 levels by 2034.

It is important to note that the investment trends and employment projections presented in this scenario were developed with industry input prior to the emergence of potential trade tensions between Canada and the United States. This forecast therefore does not take into account the possible application of tariffs on Canadian exports to and imports from the United States, nor does it account for any resulting changes in trading patterns between Canada and its other key trading partners.

“Nova Scotia’s residential construction sector is dealing with a series of complicated dynamics at the outset of our forecast period,” says Bill Ferreira, Executive Director of BuildForce Canada. “Across the province, and particularly in Halifax Regional Municipality, high levels of construction demand are being constrained by shortages of skilled residential workers. Industry stakeholders have reported that this is leading to project delays or even outright cancellations. Our forecast anticipates that activity in the residential sector will remain strong to 2034, but with the principal driver of growth shifting from new construction to residential renovations in 2030.”

Nova Scotia’s other challenge may lie in addressing the implications of an aging labour force. The province’s population is older than the national average, and an estimated 8,400 workers, or 23% of the 2024 labour force, are expected to exit the industry due to retirement by 2034. When this figure is combined with requirements created by rising construction demands, the province could face a hiring gap of as many as 15,000 workers.

Helping to alleviate this shortfall somewhat will be the expected recruitment of as many as 7,900 first-time, new-entrant workers from local labour sources over the decade. This figure should reduce the province’s hiring gap to 7,100 workers by 2034.

Keeping pace with demand will require a combination of strategies, including maintaining local recruitment and training efforts, particularly from groups traditionally under-represented in the construction labour force, the hiring of workers from other industries with the required skills sets, and the recruitment of immigrants to Canada with skilled trades training or construction experience.

New registrations in Nova Scotia’s 20 largest construction trades reached a record high in 2023, increasing by 73% compared to 2022. More than half of the largest construction trades in the province saw record numbers of new registrations, with the most notable annual increases occurring in sheet metal worker, bricklayer, and welder trade programs, where new registrations more than doubled.

Meanwhile, efforts are ongoing to enhance the recruitment of individuals from groups traditionally under-represented in the province’s construction labour force, such as women, Indigenous People, and newcomers to Canada.

In 2024, there were approximately 3,870 women employed in Nova Scotia’s construction industry. Of them, 24% worked on site, directly on construction projects. As a share of the 33,500 tradespeople employed in the province’s construction industry, women made up 3% in 2024.

The Indigenous population is the fastest growing population in Canada and therefore presents recruitment opportunities. In 2023, Indigenous People accounted for approximately 5% of Nova Scotia’s construction labour force. That figure is a slight increase from levels seen in 2014, and slightly below the percentage of Indigenous People seen in the province’s overall labour force. As the Indigenous population continues to grow, the sector must continue to work with Indigenous communities to promote career opportunities to their youth and invest in initiatives that foster long-term retention and a welcoming workplace environment where they can build fulfilling careers.

The construction industry is also committed to the recruitment of newcomers to Canada. Based on historical settlement patterns and adjusted federal immigration targets, the province is expected to welcome 125,500 new immigrants between 2025 and 2034, making these individuals, if successfully recruited, a key and growing part of the industry’s future labour force.

“Demographics and labour market trends are such that our industry will have a difficult time closing its hiring gap without adopting new approaches to recruit and retain workers from traditionally under-represented groups such as women, Indigenous People, and new Canadians,” says Trent Soholt, Executive Director of the Nova Scotia Construction Sector Council. “In this sense, augmenting diversity across our industry should be seen as more than a desirable outcome – it should be an imperative for success.”

BuildForce Canada is a national industry-led organization that represents all sectors of Canada’s construction industry. Its mandate is to support the labour market development needs of the construction and maintenance industry. As part of these activities, BuildForce works with key industry stakeholders, including contractors, proponents of construction, labour providers, governments, and training providers to identify both demand and supply trends that will impact labour force capacity in the sector, and supports the career searches of job seekers wanting to work in the industry. BuildForce also leads programs and initiatives that support workforce upskilling, workforce productivity improvements, improvements to training modalities, human resource tools to support the adoption of industry best practices, as well as other value-added initiatives focused on supporting the industry’s labour force development needs. Visit www.buildforce.ca.

For further information, contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca or 613-569-5552 ext. 2220.

This report was produced with the support and input of a variety of provincial construction and maintenance industry stakeholders. For local industry reaction to this latest BuildForce Canada report, please contact:

Trent Soholt
Executive Director
Nova Scotia Construction Sector Council – ICI
902-832-4761

Duncan Williams
President and CEO
Construction Association of Nova Scotia
902-468-2267