The construction industry in Canada has never been better. Thanks to a concerted effort of the government and the private sector, more construction projects and jobs are being created.
Surge in Construction Projects in April 2012
The construction industry in Canada is on a roll, as April saw a surge in construction projects. The residential market benefited the most from this surge, as housing rose by 14% with 244,900 units created, consisting of mostly urban apartments and condos.
According to the Canada Mortgage and Housing Corporation, multiple urban starts on apartments and condos rose by 27.4% to a total of 158,500. This is the highest record since 2007.
The heated residential construction sector is due to the rise in demand in the latter half of 2011. Incredibly low mortgage rates are also the reason behind the residential construction boom. It also shows the strong sales of multi-unit condominium and apartment projects. Urban single-family homes also rose up by 0.6% at 67,000 units.
Economists expect that the acceleration of building activity will not stop, but will probably grow at a more sustainable pace.
Canadian Construction Employment also Show Healthy Growth
Because of the surge of construction projects, the employment in the construction industry also showed positive growth. In fact, as of 2012 May 31, 7.42% of the country’s workforce were made up of construction jobs. This is the highest record since 1975. This is in stark comparison to the US, where building jobs are at a record low of 4.18% since 1946.
The reason behind the boom in building jobs in Canada can be attributed not only to the rise of the residential market sector, but also to a stimulus package by the Canadian government. This package includes spending on long-term infrastructure and therefore the creation of more jobs. And apparently, the stimulus package is working well as there is no sign of recession in several parts of the country. More importantly, the Canadian Construction Association points out that there are around 30 construction projects worth C$1 billion from the government and natural resource companies.