The Independent Contractors and Businesses Association (ICBA) has released its annual 2021 Wage and Benefits Survey with 38 per cent of B.C. construction companies expecting more work in 2021 than they had in 2020.
Construction in B.C. now employs more than 240,000 people and accounts for 9 per cent of the provincial GDP. This year, survey respondents said they expect to give their workers a 3.5 per cent raise; in 2022, they expect another 4.2 per cent increase.
“It seems counter-intuitive to expect wages to jump 7.7 per cent over the next two years at the same time employers are planning for less construction work, but that is how tight the B.C. labour market has become,” said ICBA president Chris Gardner.
The effects of COVID-19 were certainly felt by construction companies, which limited 2020 pay increases to just 0.5 per cent, roughly the rate of inflation. Companies also report fewer tenders for new projects.
“We are far off what used to be the norm of more than half of all construction contractors expecting more work in the coming year,” said Gardner. “The percentage of contractors who foresee a decline in business in 2021 is almost twice as large as last year. While the north and Vancouver Island remain relatively optimistic, the Lower Mainland and rest of B.C. are very nervous.”
Despite construction being deemed an essential service, ICBA estimates that COVID-19 still reduced construction volumes by 15 per cent in 2020 and is forecasting a further decline of 5 per cent in 2021. “Keeping close to a quarter-million men and women working on construction sites through a global pandemic provided an important life-line to many families and communities across B.C. over the past year – but uncertainty about the future is the buzzword for 2021,” said Gardner.
The survey showed there is still strong demand for workers in all regions of the province. Every single glazing, insulation, and steel company surveyed noted they needed more glaziers, insulators and steel fabricators respectively while 94 per cent of mobile crane/equipment companies said they needed more skilled operators. Roofing companies (92 per cent) are looking for roofers, and 91 per cent of pipefitter employers are on the hunt for more labour.
“If you’re looking for work, construction remains a strong option,” said Gardner. “British Columbia is going over a demographic cliff, with a workforce that is rapidly aging out. There is incredible opportunity in construction for young people, entrepreneurs and skilled trades workers. That’s why ICBA continues to ramp up our public outreach, and we’re proud to be the single largest sponsor of trades apprentices in B.C.”
