Skills Gap in the Trades Industry in Canada
Geoffrey Townson
Sean Guerin
Fabio Ventura
Bachelor of Business Administration (Trades Management) (Honours)
BBUS2105 - Principles Of Business Management & Research Part 2
Dr. Hauwa Dogonyaro
Saturday March 29 2025
Skills Gap in the Trades Industry in Canada
The skills gap in the trades industry is a critical issue in Canada, significantly impacting
both the economy and workforce sustainability. A shortage of skilled trades workers has
led to numerous unfilled positions, hindering economic productivity and growth.
Addressing this gap is essential to ensure economic resilience and meet future labor
demands.
Several key factors contribute to the skills gap, including an aging workforce, declining
apprenticeship completion rates, and training programs that fail to keep pace with
emerging technologies and industry practices. Additionally, the perception that trades
careers are less prestigious or financially rewarding compared to academic paths
exacerbates the issue, making it challenging to attract younger generations.
The objective of this research is to analyze the causes and impacts of the skills gap while
evaluating current strategies aimed at addressing the issue. By leveraging both quantitative
data from reputable sources and qualitative insights from industry analyses, this study
aims to present comprehensive recommendations for stakeholders, including
policymakers, educators, and industry leaders. The goal is to support workforce
sustainability and economic stability by closing the skills gap and promoting trades careers
as viable and attractive options for future generations.
Research Methodology
To thoroughly investigate the skills gap in Canada’s trades industry, this research will adopt
a mixed methods approach, combining quantitative and qualitative data from secondary
sources. This method is chosen because it allows for a comprehensive understanding of
the issue by analyzing measurable data alongside contextual insights without the need for
primary data collection. However, it is important to acknowledge that secondary data may
have limitations, including the potential for outdated information or biases inherent in the
original studies. To mitigate this, only the most credible and current sources will be
selected.
Methodology Components:
1. Secondary Data Analysis: This study will gather and analyze existing data from
credible sources such as Statistics Canada, the Future Skills Centre, and other
reputable industry reports. Quantitative data will help gauge the scale of the skills
gap and identify demographic trends affecting the workforce.
2. Literature Review: We will examine academic articles, government reports, and
industry publications to understand the causes, impacts, and potential solutions to
the skills gap. Both quantitative and qualitative studies will be reviewed to provide a
balanced perspective.
3. Case Study Analysis: Instead of conducting new case studies, we will analyze
documented examples of successful workforce development programs and training
initiatives. These existing case studies will offer qualitative insights into successful
strategies and practices.
4. Economic Impact Assessment: To understand the economic consequences of the
skills gap, we will evaluate existing reports and data that estimate the return on
investment for proposed solutions and interventions.
Justification for Mixed Methods Approach:
Combining quantitative and qualitative data is crucial for understanding the full scope of
the skills gap. Quantitative methods provide reliable, objective insights, while qualitative
methods add depth and context to these findings. Using secondary data exclusively also
allows for efficient data analysis and comparison, leveraging existing high-quality data sets
to draw well-supported conclusions.
Annotated Bibliography (APA Format)
Statistics Canada. (2022). Determinants of skill gaps in the workplace and recruitment
difficulties in Canada.
https://www150.statcan.gc.ca/n1/pub/18-001-x/18-001-x2022002-eng.htm
This quantitative study examines factors contributing to skills gaps and recruitment
challenges using data from the Survey of Employers on Workers’ Skills (SEWS). It employs
multivariate regression models to identify key determinants of workforce shortages,
highlighting demographic and industry-specific challenges. The findings directly inform the
analysis of demographic factors influencing the skills gap in Canada's trades sector,
providing essential quantitative evidence for the research.
Statistics Canada. (2020). Factors associated with the completion of apprenticeship
training in Canada.
https://www150.statcan.gc.ca/n1/pub/75-006-x/2020001/article/00008-eng.htm
This quantitative report analyzes factors influencing apprenticeship completion rates,
emphasizing the role of practical work experience in certification success. The findings are
essential for understanding how training aligns with workforce needs, making it highly
relevant for evaluating the effectiveness of apprenticeship programs as a solution to the
skills gap.
Future Skills Centre. (2024). Which skills shortages are impacting Canadian
productivity?
https://fsc-ccf.ca/wp-content/uploads/2024/08/skills-shortages-impactingproductivity_aug2024.pdf
This quantitative analysis examines the economic consequences of skills shortages,
presenting data on how gaps impact productivity and identifying key areas for intervention.
This source is crucial to understanding the broader economic implications of the skills gap,
allowing for a comprehensive evaluation of its impact on Canada’s economic stability and
growth.
Calian. (2024). Labour and skills shortage in Canada.
https://sites.calian.com/app/uploads/sites/5/2024/03/calianlabour_skills_shortage_canada_final.pdf
This mixed-methods report combines quantitative data with qualitative insights from
industry stakeholders, discussing challenges related to demographic shifts and workforce
training. It offers a holistic view of the causes and consequences of the skills gap, making it
a valuable resource for understanding both the data-driven and experiential aspects of the
issue.
Statistics Canada. (2024). Changes in the population of tradespeople between 2016
and 2021.
https://www150.statcan.gc.ca/n1/pub/81-595-m/81-595-m2024002-eng.htm
This quantitative demographic analysis highlights trends within the trades workforce,
focusing on the aging population and declining apprenticeship numbers. It is instrumental
in understanding how demographic factors exacerbate the skills gap, which is critical for
evaluating long-term workforce sustainability.
Higher Education Quality Council of Ontario (HEQCO). (2013). The great skills divide: A
review of the literature.
https://heqco.ca/wp-content/uploads/2020/03/Skills-Part-1.pdf
This qualitative literature review explores employer perspectives on skills gaps, identifying
disparities between educational outcomes and industry expectations. It provides
important contextual insights that support the argument for revising training programs to
better match workforce needs.
Youth Research and Evaluation eXchange (YouthREX). (2023). Canada needs to
encourage more youths to pursue skilled trade jobs.
https://youthrex.com/blog/canada-needs-to-encourage-more-youths-to-pursue-skilledtrade-jobs/
This qualitative article addresses declining youth interest in trades careers, emphasizing
societal perceptions and suggesting strategies to increase youth engagement. It is highly
relevant to the research as it highlights one of the root causes of the skills gap: the lack of
youth involvement in trades, providing insights that can inform recommendations for
promoting trades careers among younger generations.
Viczko, M., Lorusso, J. R., & McKechnie, S. (2019). The Problem of the Skills Gap
Agenda in Canadian Post-secondary Education.
https://files.eric.ed.gov/fulltext/EJ1238348.pdf
This article critically examines the perceived mismatch between graduates' skills and labor
market needs in Canada. Through qualitative analysis, the authors explore policy narratives
and their implications for post-secondary education, questioning the validity of the 'skills
gap' rhetoric. This source challenges conventional perspectives and contributes to a
balanced analysis of the issue.
RBC Thought Leadership. (2024). Powering Up: Preparing Canada's Skilled Trades for a
Post-Pandemic Economy.
https://thoughtleadership.rbc.com/wp-content/uploads/Skilled-Trades-Report.pdf
This report examines the challenges facing Canada's skilled trades sector in the wake of
the COVID-19 pandemic. It highlights issues such as the underrepresentation of women
and immigrants, the need for enhanced digital training, and ongoing stigmas surrounding
trades careers. The report provides strategic recommendations to address these
challenges, offering practical solutions for workforce development.
The Hub. (2024). The skilled trades shortage is now a threat to Canada's economy.
https://thehub.ca/2024/08/07/adam-mcdowell-the-skilled-trades-shortage-is-now-athreat-to-canadas-economy-and-were-not-doing-enough-to-plug-the-gap/
This article discusses the growing concern of skilled trades shortages in Canada,
highlighting the economic implications and the sectors most affected. It provides insights
into the challenges faced by industries such as construction and manufacturing due to
labor shortages, emphasizing the urgent need for targeted workforce policies.