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Emigration and immigration

Undocumented Workers in Canada's Construction Sector: Essential to Economic Growth, but Vulnerable to Exploitation

Strategic Insights

— 2 min read

Over a decade ago, Arjan, an undocumented worker in the electrical trade, arrived in Canada as an international student. Despite having a diploma in electrical engineering and years of experience working in the sector, he has remained in the shadows, his permanent resident application stalled due to an employer's illegal demand for a $40,000 payment. Arjan is one of thousands of workers contributing to Canada's construction sector while facing precarious living and working conditions.

Key Takeaways:

  • Over 22% of Canada's construction workforce is expected to retire by 2034, leaving a labour shortage of up to 110,000 workers, according to BuildForce Canada.
  • The construction sector increasingly relies on immigrants and temporary foreign workers to fill gaps, but they are also disproportionately assigned precarious, low-paid, and hazardous jobs.
  • Recent immigrants are about twice as likely to suffer workplace injuries compared to Canadian-born workers, according to the Institute for Work and Health.
  • Temporary foreign workers in construction have surged in demand, with employers' requests for work permits in the "construction trades helpers and labourers" category increasing over 4,000% from 2016 to 2023 (Employment and Social Development Canada).
  • The federal government has acknowledged the essential role of undocumented construction workers, with Immigration, Refugees and Citizenship Canada stating that creating a pathway for them to gain legal status would help support Canada's labour market needs.
  • Ontario's construction sector is experiencing a slowdown, driven by high interest rates and rising material costs, while the province's Labour Ministry has introduced legislation to make it easier for skilled tradespeople to work in Ontario.
  • Industry experts emphasize that immigration is crucial to filling the labour gap and addressing the housing crisis, with the federal government's promise to double Canada's rate of residential construction relying heavily on immigrant workers.

Statistics:

  • 23% of all general contractors and builders of residential buildings are immigrants, with 27% of these immigrants having arrived in Canada between 2011 and 2021 (Statistics Canada).
  • Immigrants account for 23% of Canada's construction workforce (Census data analyzed by the Institute for Work and Health).
  • The number of recent immigrants working in construction has more than tripled over the past two decades (Institute for Work and Health).
  • 4,000% increase in demands for work permits for migrant workers in construction between 2016 and 2023 (Employment and Social Development Canada).

Sources:

  • BuildForce Canada (no date)
  • Institute for Work and Health (no date)
  • Employment and Social Development Canada (2023)
  • Immigration, Refugees and Citizenship Canada (no date)
  • Statistics Canada (2021)
  • Residential Construction Council of Ontario (no date)
  • Building Industry and Land Development Association (no date)
  • Canadian Labour Congress (no date)

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