Monday, October 20, 2025

Mind the Trade Gap

Times are tight, so how can fixing Canada’s skilled trades shortage build a better economy?

The cost of living in Canada has never been higher. From budget-unfriendly burgers and beer to dwindling supply chains and a soaring housing market, Canadians everywhere are feeling the crunch. According to writer Chris Molnar, the unlikely culprit of this strain is the growing shortage of skilled tradespeople across Canada—a diverse workforce that includes electricians, plumbers, HVAC technicians, millwrights, heavy equipment operators, welders, butchers, and bakers.

This shortage is already causing longer wait times for essential services, disruptions in critical services such as school renovations and restaurant operations, and higher costs across the economy. The statistics are grim: 700,000 of Canada’s 4 million tradespeople will retire by 2028, and new entrants to those professions aren’t keeping pace, creating a widening gap. And it’s not only a labour issue, but a national economic vulnerability, leading to lost business opportunities—the Canadian Federation of Independent Business estimates a loss of $38 billion in 2022 alone due to labour shortages.

Many experts have proposed solutions, but Molnar argues that there’s no one-size-fits-all fix, and each proposal has its trade-off. Economic theory tells us that opportunity costs, local education access, and industry demands vary, so one-size-fits-all policies are ineffective.

Molnar suggests a multipronged, coordinated national strategy that

invests in trade education and public outreach to elevate skilled trades to the same esteem as university paths;
reforms immigration and credential recognition to make it easier for skilled tradespeople to move to Canada and work;
invests in technology-focused training to keep pace with industry innovations;
removes outdated apprenticeship restrictions to accelerate training; and
fosters diversity and inclusion, especially for women, Indigenous groups, and newcomers.

We would add that CLAC’s collaborative approach to labour relations, with its emphasis on skills training and multiticketing, are also part of the solution (see “The Joy and Gift of Skills”). Ultimately, Molnar argues, if Canada wants to build a more resilient, inclusive economy, it must change its mindset so that journeypersons are valued as much as those with MBAs.

Source: medium.com

Mind the Trade Gap

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