Labour shortages threaten Atlantic Canada's growth as businesses struggle to recruit skilled workers
Steve Jamieson, an electrical contractor in Prince Edward Island, is facing a significant labour shortage.
Financial Post reports that the contarctor, who lacks five electricians, has been forced to turn down work and extend project timelines, raising costs for his business and his clients.
Despite initiating the recruitment of three electricians from the United Kingdom six months ago, they have yet to arrive.
“We’re trying to grow our business, but you can only grow if you have the staff,” he stated. “There’s work that we pass on because we don’t have the staff to get the job done in a timely manner.”
Jamieson's challenge reflects a broader issue across Atlantic Canada, where an aging workforce and slow labour replacement are impacting industries. The construction sector, in particular, is losing many skilled workers to retirement, exacerbating the need for new hires.
More immigration, Jamieson believes, could alleviate this labour shortage.
However, he is concerned about the federal government’s plan to reduce immigration levels. Canada will accept 395,000 permanent residents in 2025, down from 485,000 in 2024. Further reductions to 380,000 in 2026 and 365,000 in 2027 are also planned.
Business leaders across Atlantic Canada have echoed this concern.
Sam Sanderson, general manager of the Construction Association of Prince Edward Island, said that Atlantic Canada is short approximately 6,000 to 7,000 skilled workers, leading many contractors to halt bidding on contracts due to workforce limitations.
He warned, “Any time you make any cuts to an immigration pathway with the potential to recruit skilled labour, it’s certainly detrimental. The construction sector has never been under more demand and stress than it is right now.”
The federal government’s housing initiative, which aims to build 3.87 million new homes by 2031, highlights the urgency of these workforce challenges.
According to a TD Economics report, the homebuilding industry is already strained by worker shortages, with an aging trades workforce and new immigrants joining construction at lower rates compared to other sectors.
This situation underscores the need for a targeted approach to immigration to prioritize skilled labour.
In response, construction associations in Atlantic Canada have organized recruitment efforts overseas, including in the United Kingdom, Ireland, and Mexico.
Sanderson mentioned that nearly 900 skilled workers expressed interest in moving to Atlantic Canada, but he also noted that the immigration application process remains lengthy, often taking up to two years.
“If you want to build a successful construction industry, you have to have the resources to do it,” Sanderson remarked. “Money is never going to solve this problem. It’s about people — skilled, qualified people — to help us build Canada.”
The challenges extend beyond construction. According to Ather Akbari, an economics professor at Saint Mary’s University in Halifax, labour shortages are affecting both high- and low-skill sectors, including health care.
Akbari emphasized the need for immigration policies that consider regional labour demands, particularly in Atlantic Canada.
He added that the housing crisis has partly resulted from inadequate planning for previous immigration levels, suggesting that a more strategic distribution of immigrants could mitigate issues in critical areas like health care and infrastructure.
In Newfoundland and Labrador, the province with the oldest population in the country, the implications of immigration cuts are especially concerning.
Wanda Cuff-Young, vice-president of Work Global Canada Inc., argued that the province cannot afford a reduction in immigration.
She highlighted that the province is already maxing out its immigration allocation and is likely to do so again this year, despite ongoing mining and oil and gas projects that will require skilled workers from overseas.
Louis-Philippe Gauthier, Atlantic vice-president of the Canadian Federation of Independent Business, underscored that immigration is integral to Atlantic Canada’s economic stability. He warned that immigration cuts could revert the region to an era of economic stagnation.
“In Atlantic Canada, the conversation is that we are facing a demographic reality, [and] our economies depend on immigration,” he said, stressing the need for a nuanced national conversation that addresses regional needs.
As Atlantic Canada grapples with a dwindling workforce, business leaders and economists alike are advocating for immigration policies that prioritize skilled labour to support the region's economic growth.
