What Ontario’s Labour Market Is Signaling to Contractors

Crew Stability = Profitability

Ontario’s construction sector employs nearly 600,000 workers, about 7.5% of the provincial workforce, and demand remains strong across infrastructure and housing. At the same time, labour market tightness continues to shape operations.

Employers consistently report that recruiting and retaining skilled workers is among their top challenges. With projected retirements and ongoing project demand, Ontario could face a shortfall of tens of thousands of construction workers by the early 2030s.

Why This Matters to Contractors

Workforce stability directly affects:

  • Productivity – Fewer disruptions and less rework
  • Project continuity – Reduced delays caused by crew turnover
  • Safety performance – Stable teams typically experience fewer incidents
  • Labour costs – Less time spent hiring, training, and replacing workers

In a tight labour market, losing experienced workers has a greater operational impact than in periods of higher unemployment.

What Research Suggests Influences Retention

Early Employment Experience
Across industries, the highest turnover risk occurs in the first few months. Clear expectations, defined reporting lines, and structured onboarding are consistently linked to stronger early retention outcomes.

Frontline Supervision
Research shows that day-to-day management quality strongly influences whether workers stay. Communication clarity, consistent direction, and timely feedback are associated with improved crew stability.

Workload and Burnout
Long hours and unpredictable scheduling, common in construction, are associated with fatigue and higher turnover intention. Workload predictability is correlated with improved retention and safety performance.

Career Path Visibility
Workers are more likely to remain where advancement pathways and skill progression are visible. Clarity around how to move from entry-level roles to lead or supervisory positions is linked to longer tenure.

The Ontario Context

  • Construction unemployment has remained historically low, increasing competition for skilled workers.
  • The workforce remains concentrated in core age groups, with lower participation from youth and women.
  • Retirements combined with ongoing demand mean both recruitment and retention will shape capacity over the next decade.

Bottom Line

In Ontario’s current labour market, workforce stability is not just a people issue, it is a productivity, safety, and margin issue.

1