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B.C. on the brink: 72% of construction companies face severe labour shortages, finds ICBA

DCN-JOC News Services
B.C. on the brink: 72% of construction companies face severe labour shortages, finds ICBA

SURREY, B.C. — The Independent Contractors and Businesses Association’s (ICBA) 2025 Wage and Benefits Survey is revealing 72 per cent of B.C. contractors are facing a shortage of skilled tradespeople that is forcing them to turn down projects and absorb rising costs.

The survey also shows 63 per cent of respondents said government is on the “wrong track” in dealing with a business like theirs.

“When nearly two-thirds of businesses in a major job-creating sector say the government is on the wrong track, it’s time to listen,” said Chris Gardner, ICBA president and CEO, in a statement. “Labour shortages remain a significant challenge facing construction, and government must get serious about fast-tracking training programs and aligning immigration policies with industry needs.”

The other biggest challenges cited by respondents in 2025 include declining margins (40 per cent), securing new projects (35 per cent), permitting/approval delays (31 per cent), prompt payment (31 per cent), regulatory burden (30 per cent) and employee retention (30 per cent).

Despite these challenges, demand in the construction sector remains strong. Nearly 50 per cent of contractors expect increased work volumes in 2025, with average anticipated growth reaching 19 per cent, the survey reveals.

The average hourly rate for construction wages has also climbed to $37, equating to an annual base salary of $77,000.

“Our industry continues to deliver, despite worker shortages, regulatory burdens and project delays. But B.C.’s construction sector could contribute so much more if government policies enabled us to thrive,” Gardner added. “Instead, contractors and businesses get more red tape, higher taxes, and a seemingly never-ending stream of anti-business rhetoric that have many saying it’s never been harder to start and build a business in B.C. than it is today.”

The ICBA is urging the provincial and federal governments to tackle skills shortages, streamline approvals and prioritize policies that support housing and infrastructure development.

For more on the results click here.

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