Construction (NAICS 23): Ontario, 2025
Highlights
- There were 578,900 people employed in the Ontario construction industry, comprising 7.1% of Ontario’s total workforce in 2024.
- Employment in the construction industry decreased by 4.4% in 2024.
- Employment is expected to grow slightly over the 2025-2027 forecast period, as infrastructure investments continue to act as a key driver for construction, as well as an increased need to recruit skilled trade workers to meet industry demands.
About the Sector
Composition and importance of the sector
The construction sector is comprised of three major subsectors - construction of buildings, heavy and civil engineering construction, and trade contracting – with the last being the largest by employment.
Firms in the construction of buildings engage in new construction, undertake additions, or maintenance and repairs. Those in heavy and civil engineering provide specialized services for construction projects. Specialty trade contractors generally perform masonry, painting, electrical work and other trades functions.
In 2024, the construction sector employed 578,900 people in Ontario, approximately 7.1% of the province’s workforce.
The construction industry contributed $56.6 billion (6.4%) to Ontario’s Gross Domestic Product (GDP) in 2024. Compared to the previous year, construction GDP in Ontario fell by nearly $1.3 billion (-2.2%).
| Construction of Buildings | Heavy and Civil Engineering Construction | Trade Contracting | |
|---|---|---|---|
| 37% | 7% | 56% |
Description of graphic in accessible text
A pie graph that shows the employment breakdown by subsectors in percentages. Trade contracting is the subsector that accounts for the largest share of construction employment (56%), followed by the construction of buildings (37%) and heavy and civil engineering construction (7%).
Source: Statistics Canada, Labour Force Survey, Custom Table
Geographical distribution of employment
Ontario’s construction industry is concentrated in the Toronto economic region (ER), which accounted for 38.6% of total provincial construction employment in 2024, followed by Kitchener-Waterloo-Barrie (12.6%) and Ottawa (11.2%).
In terms of construction employment as a share of ER employment, the industry is over-represented in the Stratford-Bruce Peninsula (12.3%) and Muskoka-Kawarthas (10.7%). The Stratford-Bruce Peninsula is home to one of the largest infrastructure investment projects in Ontario history at Bruce Nuclear Generating Station, which has resulted in a significant boom in spin-off construction jobs.
| Ottawa | 64,800 | 11.2% |
| Kingston-Pembroke | 22,100 | 3.8% |
| Muskoka-Kawarthas | 21,900 | 3.8% |
| Toronto | 223,700 | 38.6% |
| Kitchener-Waterloo-Barrie | 72,800 | 12.6% |
| Hamilton-Niagara Peninsula | 64,400 | 11.1% |
| London | 31,400 | 5.4% |
| Windsor-Sarnia | 26,900 | 4.6% |
| Stratford-Bruce Peninsula | 19,300 | 3.3% |
| Northeast | 23,800 | 4.1% |
| Northwest | 7,700 | 1.3% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: Totals may not sum due to rounding.
Workforce
Workforce characteristics
- Males accounted for 86.5% of Ontario’s construction employment in 2024, compared to 52.8% for all industries.
- Self-employment was more common in this industry at 27.4% in 2024, compared to 13.5% for all industries.
- About 16.8% of those employed in the sector in 2024 possess a university degree, lower than the average across all sectors in Ontario (41.7%).
- The average hourly wage in construction was $38.33 in 2024, above the provincial average of $30.50.
| 70011 Home building and renovation managers | 64,300 | 11.1% |
|---|---|---|
| 75110 Construction trades helpers and labourers | 49,700 | 8.6% |
| 72200 Electricians (except industrial and power system) | 40,800 | 7.0% |
| 70010 Construction managers | 37,800 | 6.5% |
| 72310 Carpenters | 34,700 | 6.0% |
| 72300 Plumbers | 23,700 | 4.1% |
| 72402 Heating, refrigeration and air conditioning mechanics | 21,300 | 3.7% |
| 73200 Residential and commercial installers and servicers | 19,800 | 3.4% |
| 73400 Heavy equipment operators | 18,700 | 3.2% |
| 72014 Contractors and supervisors, other construction trades, installers, repairers and servicers | 17,600 | 3.0% |
Source: Statistics Canada, Labour Force Survey, Custom Table
Note: The NOCs listed make up approximately half of those employed in the sector.
Recent History
Residential Construction
In Ontario, residential building permit values, dwelling units created, and construction investments all softened in 2023, likely a response to the sharp interest rate increases in 2022. While building permit values rebounded in 2024, investment levels and the number of dwelling units created continued to decrease. Housing starts have also not kept pace, experiencing a year-over-year decline of 7.1% in 2023 and a further drop of 16.5% in 2024.
The relationship between increasing building permit values and decreasing housing starts suggests that Ontario municipalities issued a higher number of building permits in 2024 than there were interested developers, pointing to costs as a major project barrier. During this period, developers have experienced the rising costs of borrowing, a tight labour supply, complex regulatory requirements, high development costs, and material inflation and shortages.
To address the decline in residential construction, the federal and provincial governments introduced the ongoing GST/HST purpose-built rental housing rebate in 2023, which eliminates GST and HST taxes on new rental housing built specifically for renters. The provincial government also introduced legislation to streamline certain third-party appeals to the Ontario Land Tribunal to help communities get quicker planning approvals for housing projects, and launched the Building Faster Fund, a three-year, $1.2 billion program that provides new funding based on performance against provincial housing targets.
Non-residential Construction
When compared to residential construction, the non-residential construction subsector has experienced continuous full-scale growth. Non-residential building permit values increased in 2024 by 18.1%, following gains of 13.3% in 2023. Investment in non-residential building construction also grew in 2024 by 10.3%, led by a significant growth in industrial construction investment (+30.5%). Infrastructure investments continue to be at the forefront of non-residential building activity.
Substantial population growth in recent years has set the pace for institutional, transportation and utilities-related construction investments, including schools, hospitals, roads, and municipal water/sewage systems. These investments have been largely led by the provincial government under legislative changes to streamline the development process, as well as funding programs like the Municipal Housing Infrastructure Program and the Housing-Enabling Water Systems Fund, that support municipalities and developers in hosting and enabling greater residential construction to help address housing affordability and availability issues in Ontario.
Manufacturing plant and power plant-related construction have also grown, with specific concentrations in electric vehicle (EV) supply-chain manufacturing and electricity generation. The federal and provincial governments have made large investments to incentivize manufacturing plant construction projects that support the EV supply-chain, which benefits from the adjacent mining sector in Ontario. Regarding power plant construction, investments by the provincial government have been made to support Ontario Power Generation’s refurbishments of nuclear generating stations and the construction of small modular reactors to meet the province’s growing demand for electricity and strengthen capacity to produce clean and sustainable energy.
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employment | 100.0 | 101.0 | 105.9 | 110.6 | 113.2 | 115.9 | 114.4 | 116.8 | 126.5 | 130.2 | 124.5 |
| GDP | 100.0 | 108.3 | 109.0 | 112.0 | 119.6 | 120.5 | 123.1 | 130.5 | 127.8 | 125.2 | 122.8 |
| Building Permits | 100.0 | 100.2 | 101.1 | 112.2 | 117.5 | 121.1 | 119.0 | 150.0 | 160.9 | 158.7 | 170.9 |
| Housing Starts | 100.0 | 118.6 | 126.7 | 133.8 | 133.2 | 116.7 | 137.5 | 168.4 | 162.5 | 151.0 | 126.1 |
Description of graphic in accessible text
This line graph shows changes in four indicators related to Ontario's construction sector over a 10-year period. Employment has increased steadily between 2014 and 2024, while GDP has also increased since 2014, in step with employment, before slowly declining from 2021 onwards. The number of building permits was on a steady growth trajectory before increasingly sharply in 2020. In comparison, the number of housing starts in Ontario grew sharply between 2019 and 2021 before trending downwards in the last 3 years.
Sources: Statistics Canada, Labour Force Survey Custom Table, Statistics Canada, Gross Domestic Product by Industry (Annual), Table 36-10-0711-01, Statistics Canada, Building Permits by type of structure and type of work (Monthly), Table 34-10-0285-01, Canada Mortgage and Housing Corporation, Housing starts (Annual), Table 34-10-0126-01
*Data are expressed as an index, where year 2014 = 100%
Employment Outlooks
Employment in Ontario’s construction industry is expected to increase slightly over the 2025-2027 forecast period.
In Ontario, residential construction has slowed in 2025 as a result of unaffordability and high inventory, but gradual growth is expected in 2026 from pent-up demand and lower interest rates. Amid trade tensions, a dependence on U.S.-made housing components also puts residential construction prospects at risk by increasing building costs. However, increased federal and provincial government financing of residential construction projects and related-infrastructure, in addition to Build Canada Homes’ housing development, is likely to hold construction employment levels steady over the next three years. Meanwhile, a significant decline in federal immigration targets will likely ease housing pressures through slower population growth, while lowering investor demand for multiple-dwelling unit construction, particularly for condominiums in the Greater Toronto Area.
Non-residential construction has the potential to continue its growth trajectory, with a peak expected in 2027 and moderate growth until 2029. Growth is supported by mining, nuclear and public works investments in engineering construction and investments in industrial, commercial and institutional construction. Of particular note, in October 2025, the Government of Ontario and Government of Canada announced investments of $1 billion and $2 billion, respectively, to support the construction of the first small modular reactors in the G7 at the Darlington Nuclear Station. The project is expected to create 18,000 jobs during construction. Still, ongoing trade uncertainty may threaten industrial construction projects by discouraging the establishment or expansion of factories that manufacture tariff-impacted products, such as automotive parts.
Interest rate decisions by the Bank of Canada will also influence both residential and non-residential construction activity. After four years of interest rate holds and hikes, the Bank of Canada has continuously lowered the benchmark interest rate since June 2024. Lower borrowing costs for builders, as well as improved affordability for homebuyers have the potential to encourage new construction projects and housing market activity.
A key concern for the construction sector moving forward is the aging workforce. To help offset retirements and meet growing demands, there has been a focus on recruitment initiatives to promote skilled trade occupations. For example, a number of apprenticeship programs exist under the Government of Canada’s Canadian Apprenticeship Strategy, including the Union Training and Innovation Program (UTIP), the Skilled Trades Awareness and Readiness Program, and the Women in the Skilled Trades Initiative. Provincially, Ontario’s Skills Development Fund supports projects that address labour shortages in the economy, including training and capital projects in the construction sector.
Key trends affecting the outlook of the construction sector
- Lower interest rates and growing housing demand are predicted to increase residential construction activities, starting in 2026.
- Significant government and industry investments should drive growth in the province’s non-residential construction sector.
- Dependence on U.S.-sourced construction materials and products could delay major residential and non-residential construction projects due to higher building costs.
For Further Information
Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.
Portions of this sector profile were prepared with support from artificial intelligence (AI) tools, in accordance with Employment and Social Development Canada (ESDC) guidelines. All AI-assisted content has been reviewed for accuracy and compliance with ESDC standards.
Prepared by: Labour Market and Socio-economic Information Directorate, Service Canada, Ontario Region
For further information, please contact the Labour Market Information Directorate.
Appendix
| 2022-2024 Average | 2022-2024 Average | |
| Ontario | 100.0% | 7.4% |
| Ottawa | 10.1% | 7.4% |
| Kingston-Pembroke | 3.7% | 9.2% |
| Muskoka-Kawarthas | 3.6% | 10.7% |
| Toronto | 39.5% | 6.2% |
| Kitchener-Waterloo-Barrie | 12.9% | 8.9% |
| Hamilton-Niagara Peninsula | 11.2% | 8.1% |
| London | 5.8% | 8.4% |
| Windsor-Sarnia | 4.4% | 7.6% |
| Stratford-Bruce Peninsula | 3.5% | 12.3% |
| Northeast | 3.9% | 8.6% |
| Northwest | 1.4% | 7.9% |
Sources: Statistics Canada, Labour Force Survey, Custom Table
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| Employment, 2024 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | |
| Employment | 578,900 | 100.0% | 2.3% | 100.0% | 1.8% |
| Male | 500,500 | 86.5% | 2.0% | 52.8% | 1.9% |
| Female | 78,300 | 13.5% | 4.3% | 47.2% | 1.7% |
| 15-24 years old | 65,500 | 11.3% | 1.7% | 12.6% | 1.0% |
| 25-54 years old | 394,900 | 68.2% | 2.1% | 66.2% | 1.8% |
| 55 years and older | 118,500 | 20.5% | 3.8% | 21.2% | 2.6% |
| Worked full-time | 536,900 | 92.7% | 2.4% | 82.4% | 2.1% |
| Worked part-time | 42,000 | 7.3% | 2.0% | 17.6% | 0.8% |
| Self-employed | 158,700 | 27.4% | 1.4% | 13.5% | 0.9% |
| Employees | 420,200 | 72.6% | 2.8% | 86.5% | 2.0% |
| Permanent job | 378,800 | 65.4% | 3.4% | 77.0% | 2.2% |
| Temporary job | 41,400 | 7.2% | -1.4% | 9.5% | 0.8% |
| Less than high school | 56,800 | 9.8% | -0.5% | 5.8% | -2.0% |
| High school graduate | 152,500 | 26.3% | 1.9% | 21.2% | -0.9% |
| Postsecondary cert. or diploma | 239,800 | 41.4% | 2.3% | 31.3% | 1.3% |
| University degree | 97,400 | 16.8% | 7.2% | 41.7% | 5.1% |
Sources: Statistics Canada, Labour Force Survey, Custom Table
*Average annual growth rate for last ten years available data