Across North America, businesses are facing a major challenge: there simply aren’t enough skilled tradespeople to fill open positions. This labor shortage is affecting construction, manufacturing, electrical work, plumbing, and other essential trades. These are industries that keep our homes, businesses, and infrastructure running.
The Growing Shortage by the Numbers
In the U.S., the skilled trades labor shortage is becoming a crisis. 70% of employers report difficulty finding qualified workers to fill skilled trade roles. This shortage is causing widespread delays in construction projects, driving up costs, and even threatening the country’s ability to meet infrastructure demands (Exploding Topics). Meanwhile, in Canada, over 10,000 skilled workers will be needed in high-demand Red Seal trades over the next five years, with the real number likely much higher when accounting for all trades (RBC).
Why Is There a Shortage?
Several key factors are fueling this crisis:
- Retiring Workforce – In the United States, a critical issue is emerging as over one in five skilled tradespeople are over the age of 55 (NAHB), signaling an impending labor shortage. Similarly, Canada is set to face a major gap when 257,000 construction workers retire by 2029 (Sovereign Insurance).
- Declining Interest in Trades – Younger generations have been pushed toward university degrees, with fewer students pursuing careers in the trades. This shift has created a pipeline issue, where not enough new workers are replacing retirees.
- Immigration & Policy Challenges – In the United States, the construction industry already relies heavily on immigrant labor. Immigrants make up roughly 25% of the workforce, according to the National Association of Home Builders (NAHB). A vital statistic given the aging domestic labor pool and soaring demand for new projects. Proposed shifts in U.S. immigration policy could further diminish this crucial labor force, exacerbating shortages, delaying projects, and increasing costs. A trend that mirrors challenges seen in Canada where Statistics Canada noted an 11.2% drop in immigrant trades workers between 2016 and 2021.
- Skills Mismatch – As an effect of more young people attending universities, over trade schools, many job seekers lack the specific training needed for skilled trades roles, leaving companies with unfilled positions despite a broader job market seeking opportunities.
What This Means for Businesses
The impact of the skilled labor shortage extends far beyond hiring struggles. It leads to higher wages due to increased competition for talent, project delays as companies struggle to staff jobs, and economic slowdowns in industries that rely on a steady workforce.
Businesses that rely on skilled trades must start thinking ahead—whether that means investing in workforce development, offering better incentives, or finding new ways to source and secure top talent.
What Can Businesses Do to Stay Ahead?
With no quick fix to the skilled labor shortage, companies must take a proactive approach to workforce development and recruitment. Here’s how:
- Invest in Training & Apprenticeships – Companies can’t wait for skilled workers to appear—they need to help create them. Partnering with trade schools, offering apprenticeships, and creating internal training programs can build a strong talent pipeline. Government incentives are often available to support apprenticeship programs, making them a win-win for businesses and workers.
- Strengthen Compensation & Benefits – With fewer skilled tradespeople available, workers have more options. Competitive wages, healthcare benefits, paid training, and clear career growth opportunities make your company stand out. Even offering small perks, like tool allowances or flexible scheduling, can make a difference.
- Broaden Recruitment Strategies – Companies should expand their reach beyond traditional job postings. Attending trade school job fairs, leveraging social media, and tapping into underrepresented groups—such as women in trades—can help attract new talent.
- Improve Hiring & Retention Efforts – Streamlining the hiring process makes a big impact. Businesses that reduce hiring delays, simplify applications, and offer quick feedback to candidates have a better chance of securing top talent. Additionally, focusing on employee retention through mentorship programs and workplace culture improvements helps prevent turnover. Check out our 10 Tips to Retain Your Employees for practical strategies you can start using in your business today!
- Leverage Recruiting Services for Faster Hiring – For companies that need skilled workers now, using a recruiting service can speed up the process. At Zephyr Connects we have created a service specific to labor positions, we call it SCOUT. This service can help businesses quickly find and hire tradespeople without the hassle of long-term commitments.
Taking the Next Step
The skilled labor shortage isn’t going away overnight, but businesses that act now can gain a competitive edge. Start by:
✅ Assessing current workforce gaps and future hiring needs
✅ Building relationships with local trade schools and apprenticeship programs
✅ Reviewing compensation and benefits to stay competitive
✅ Strengthening recruitment efforts to attract a wider talent pool
By taking proactive steps today, businesses can secure the skilled workforce they need for long-term success.