A selection of data reflecting trends in the Canadian construction industry

NON-RESIDENTIAL INVESTMENT OUTPACING RESIDENTIAL COMPONENTS

Investment in building construction was down in November, but not in the non-residential sector where the three core components – industrial, commercial and institutional – combined to post a slim increase, reaching $5.5 billion. A significant drop in Alberta pushed the combined residential and non-residential figure to $20.4 billion for the month. Ontario accounted for most of the non-residential growth.

The industrial component was up almost one per cent on the month, at $1.1 billion, a 25.5 per cent rise year over year. Commercial construction edged up to $3.1 billion in November. Institutional construction investment remained flat for the month, remaining at $1.4 billion, a value it has consistently stayed close to after reaching its historic peak in April.

Investment in residential building construction saw a third consecutive decline as the single-family home component continued to fall. The drop brought the single-family component back down to levels last seen in December of 2021. The multi-unit component remained relatively unchanged to slightly positive, however, coming in at $7.1 billion.

PERMITS POST DOUBLE-DIGIT JUMP

The total value of building permits in Canada reached $11 billion in November, reports Statistics Canada. That was a rise of 14.1 per cent from a month earlier, with growth coming as a rebound after a pair of months of losses. The rebound was tied heavily to significant gains posted in Ontario.

The multi-unit component drove residential sector growth, where combined permit values reached $7.1 billion. Permits for multi-family dwellings were up 19 per cent thanks largely to 21 permits for new condominiums and apartments in Ontario with values over $10 million. The single-family dwelling component advanced as well, but by a more modest seven per cent.

Ontario played a major role in the growth of non-residential sector permits as well. The total permit value in the sector rose almost 15 per cent to reach $3.9 billion in November.

Permits in the institutional component were up 41 per cent, with much of that gain linked to a new courthouse planned for development in Toronto. That project is valued at just over $500 million. The value of permits in the industrial component followed a strong October with a second consecutive healthy month, jumping 32.4 per cent thanks to projects like a $425 million manufacturing plant in Toronto. The lone drop could be found for construction intentions in the commercial component, where permit values edged down a slight 0.6 per cent.

RESIDENTIAL +7.1% Multi Family +19.0% COMMERCIAL -0.6% INDUSTRIAL +32.4%

INSTITUTIONAL +40.6%

Construction Employment Rebounds

Following a decrease in employment in November, the number of people working in Canada’s construction sector rose by 35,000 in December. The 2.3 per cent increase was led by significant gains in Ontario and Alberta. On a year-over-year basis, employment in construction was up by 84,000 in December, a jump of almost six per cent.

Overall, Canadian employment figures rose by a half-per cent, or 104,000 positions, for the month as the national unemployment rate dropped by 0.1 per cent to reach five per cent. That was just above the record low of 4.9 per cent that was observed in June and July of 2022. Total hours worked were little changed on a monthly basis in December, and up roughly one-and-a-half per cent compared with 12 months earlier.

Total Employment in Canada

19,770,000

Unemployment Rate 5.0%

Construction Employment

1,544,300