What Happened

On June 18, 2026, the Residential Construction Council of Ontario (RESCON) released an independent report titled 'Are We Ready to Build Canada? A Behavioural Analysis of Canada's Construction Talent Pipeline and Skills Training Policy' to address the declining number of workers completing training and receiving certification. The report was co-authored by Nathaniel Barr and Michael McNamara from Sheridan College, alongside James K. Stewart, an economist and senior fellow at the C.D. Howe Institute. RESCON president Richard Lyall stated that the current apprenticeship system is flawed and that traditional approaches are insufficient to reverse the decline in completion rates. Lyall emphasized that Canada must look beyond conventional methods and incorporate behavioural science to significantly boost apprenticeship completion. The report highlights that national apprenticeship completion rates hover around 35%, though some programs achieve 60-70% completion rates, indicating significant variability and systemic inefficiencies. The announcement, distributed via Globe Newswire and reported by the Financial Post, underscores the urgency of redesigning the system to address labour shortages in the construction sector.

Why It Matters

The decline in apprenticeship completion rates directly impacts the construction industry's ability to deliver housing and infrastructure projects. With national completion rates stagnating around 35%, the industry faces a critical shortage of certified tradespeople. This bottleneck exacerbates labour shortages, particularly in Ontario, where RESCON operates. The proposed shift towards behavioural science aims to identify and mitigate the psychological and structural barriers that cause apprentices to drop out. By redesigning the system to better support apprentices through their training, the industry can improve retention and certification rates, thereby increasing the supply of skilled labour. This is crucial for addressing the housing crisis and ensuring that construction projects are completed on time and within budget. The involvement of academic and economic policy experts lends credibility to the call for systemic reform, suggesting that data-driven strategies are needed to improve outcomes.

Local Vancouver / Burnaby Context

While the report is led by Ontario-based RESCON, the findings on apprenticeship completion rates and labour shortages have national implications for the Canadian construction industry, including the Greater Vancouver area. Burnaby and Vancouver face similar challenges in attracting and retaining skilled tradespeople for residential and commercial development. The local context in British Columbia involves navigating provincial regulations and licensing requirements for trades, which can vary by province. However, the core issue of low completion rates and the need for innovative training approaches is relevant across Canada. Local builders and developers in Burnaby and Vancouver may benefit from adopting the behavioural science strategies proposed in the report to improve their own talent pipelines. The report's emphasis on data-driven strategies aligns with broader industry efforts to optimize training and retention. It is important to note that while RESCON is an Ontario entity, the national nature of the apprenticeship crisis means that insights from this report can inform policy and practice in other provinces, including BC. The local brokerage experience in Burnaby often highlights the impact of labour availability on project timelines and costs, making this issue pertinent to local market dynamics.

Market Impact

The failure to improve apprenticeship completion rates will likely continue to constrain the supply of skilled labour, leading to higher construction costs and longer project timelines. This can impact housing affordability and availability, as delays in construction contribute to supply shortages. For investors and buyers, this means potential for increased costs and price volatility in the housing market. The industry's ability to respond to demand will be limited by the availability of certified tradespeople. Improving completion rates could help stabilize construction costs and improve project delivery times, benefiting the broader housing market. However, without significant reform, the labour shortage will remain a key risk factor for the industry.

Investor / Buyer Takeaway

- Monitor construction cost trends, as labour shortages continue to drive up expenses for new developments.

- Be aware of potential delays in project completions due to the ongoing shortage of certified tradespeople.

- Consider the impact of labour availability on housing supply and affordability in your target market.

- Look for developers who are proactively addressing labour challenges through innovative training and retention strategies.

- Understand that policy changes aimed at improving apprenticeship completion could have long-term positive effects on market stability.

Builder / Developer Perspective

Builders and developers face significant challenges in recruiting and retaining skilled tradespeople due to low apprenticeship completion rates. The proposed behavioural science approach offers a potential solution to improve retention and certification, which could reduce recruitment costs and project delays. However, implementing these strategies may require investment in training programs and changes to existing HR practices. Developers may need to collaborate with educational institutions and industry groups to adopt these new approaches. The report's findings highlight the need for systemic change rather than just incremental improvements, which could have significant implications for how the industry manages its talent pipeline. Feasibility of new projects may be impacted by the availability of labour, making this a critical issue for development planning.

Risk Factors

- Continued decline in apprenticeship completion rates could exacerbate labour shortages and increase construction costs.

- Policy changes to support the new apprenticeship model may face implementation challenges or resistance.

- Economic downturns could reduce demand for construction, further impacting the viability of apprenticeship programs.

- Competition for skilled labour from other industries may persist despite efforts to improve completion rates.

- Regional variations in licensing and regulations could complicate the adoption of national best practices.

BurnabyHouse Insight

The call by RESCON, Sheridan College, and the C.D. Howe Institute to use behavioural science to fix the apprenticeship crisis is a significant step towards addressing the root causes of labour shortages in the construction industry. While the report is Ontario-focused, the underlying issues of low completion rates and the need for innovative training approaches are relevant nationally. For Burnaby and Vancouver, this highlights the importance of local collaboration with industry groups and educational institutions to develop effective talent pipelines. The shift towards data-driven strategies could lead to more sustainable and efficient training models, benefiting the entire industry. However, the success of these initiatives will depend on widespread adoption and support from policymakers, educators, and employers. Local builders should stay informed about these developments and consider how they can adapt their own practices to attract and retain skilled workers.