Residential sector drives employment growth in PEI's construction industry to 2034, with mostly balanced labour markets projected

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OTTAWA, Ontario, March 31, 2025 (GLOBE NEWSWIRE) --

Both the residential and non-residential construction sectors in Prince Edward Island recorded growth in 2024, with the former elevated by growth in new construction and the latter supported by growth in the construction of industrial, commercial, and institutional (ICI) buildings.

Released today, the BuildForce Canada 2025-2034 Construction and Maintenance Looking Forward report for the province calls for investment levels in the two components to diverge to the end of the forecast period.

Activity in the residential construction sector is expected to rise significantly into 2030, supported by strong demand for all types of new housing. A notable contraction follows, but is offset somewhat by consistent growth in demand for residential renovations through the decade. These trends combine to elevate residential employment levels in the province by 12% above 2024 levels by 2034, with growth greatest in employment relating to renovations and maintenance activity.

Activity in the non-residential sector is projected to moderate from the peak it reached in 2024, contracting into 2030 with slowing activity in the construction of ICI buildings as work concludes on several major projects. Engineering construction investment, meanwhile, is projected to rise into 2026 with ongoing work on key utility and roads, highways, and bridges projects. It slows into 2029 as these projects conclude before rising modestly to the end of the decade. By 2034, non-residential construction employment is projected to contract by 9% compared to 2024 levels.

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.

"Investment in the residential construction sector in PEI has been on a steady growth trend since 2016, and is supported by a comparatively low cost of living compared to other parts of the country,” says Bill Ferreira, Executive Director of BuildForce Canada. "That trend is likely to combine with pent-up demand to bring the province's housing sector to an historic peak in 2030. In contrast, activity in the non-residential sector has been operating at an elevated level for some years and is projected to come down from this peak as work on key projects slows or is completed. Even so, some context is important: investment in non-residential construction will remain above historical norms to the end of the decade.”

Prince Edward Island's construction labour force should be mostly balanced across the forecast period. The overall labour force is projected to increase modestly by 2034. However, when added to the expected retirement of 1,680 workers, or 22% of the 2024 labour force, the province's hiring requirements could reach as many as 1,760 workers over the entire outlook period.

Due to heightened industry and government career promotional efforts, these hiring requirements may be addressed by the recruitment of an estimated 1,750 first-time new entrants under the age of 30 from the local population.

"Although it is encouraging to see long-term balanced labour market projections for the province's construction labour force, there is no room for complacency,” says Ferreira. "Keeping pace with retirements and developing a skilled labour force that can adequately meet the industry's needs requires a variety of strategies, including ensuring local recruiting and training efforts remain robust in the face of growing competition from all industries for the recruitment of younger workers.”

New registrations in PEI's seven largest construction trades programs have more than doubled over the past decade, and have kept pace with employment growth over this period. New registrations reached a record level in 2023, driven by increased intakes in the carpenter, construction electrician, and welder trade programs.

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 910 women employed in Prince Edward Island's construction industry, an increase of more than 300 compared to 2023. Of them, 36% worked on site, directly on construction projects. As a share of the 7,250 tradespeople employed in Prince Edward Island's construction industry, women made up 5% in 2024.

The Indigenous population is the fastest growing population in Canada and therefore presents recruitment opportunities. In 2021, Indigenous People accounted for approximately 3% of Prince Edward Island's construction labour force. That figure was more than double the share reported in 2016, and higher than the share represented in the overall provincial labour force in 2021. 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, Prince Edward Island is expected to welcome nearly 32,200 new immigrants between 2025 and 2034, making these individuals, if successfully recruited, a key and growing part of the industry's future labour force.

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 [email protected] 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:

Sam Sanderson

General Manager

Construction Association of Prince Edward Island

902-628-5421