Construction (NAICS 23): Alberta, 2025
Highlights
- Alberta's construction industry contributed roughly $29 billion, or about 8.3%, to the province’s GDP in 2024. GDP growth has been volatile in this industry in the past 10 years but saw a 5% increase from 2023-2024.
- Employment in Alberta’s construction sector increased slightly between 2019 and 2024 from approximately 232,600 to 246,500 workers, now comprising about 10% of total provincial employment. Median hourly wages for construction trades ranged from $25.00 to $50.00 depending on occupation and experience, with an average around $38.59 per hour. Despite stable employment, the sector faces major challenges from workforce aging and mass retirements (43,400 by 2034), requiring 43,600+ new hires to maintain staffing, according to BuildForce Canada. These pressures are occurring amid tight regional labour markets and competition from other industries.
- GDP and labour market trends portray a construction sector adjusting to inflationary cost pressures, shifting project priorities, and demographic challenges. Activity in the non-residential sector is driving much of the sector’s growth. Residential activity has also been elevated over the near term, with housing starts up 49% from June 2024. An impending wave of retirements and recruitment difficulties pose risks to future growth. Wage increases reflect labour market tightness but also contribute to rising project costs.
About the Sector
Composition and importance of the sector
The construction sector in Alberta is made up for four main sub-sectors. Residential Building Construction (NAICS 2361) comprises 28% of the sector’s GDP. Business in this subsector mainly involves construction or remodelling and renovation of single-family and multi-family residential buildings.
Non-residential Building Construction (NAICS 2362) contributes 9% of sector GDP, with a focus on industrial and commercial projects.
Heavy and Civil Engineering Construction (NAICS 237) accounts for 53% of the sector’s GDP. This subsector includes establishments whose primary activity is the construction of entire engineering projects (e.g., highways and dams), and specialty trade contractors, whose primary activity is the production of a specific component for such projects. Construction projects involving water resources (e.g., dredging and land drainage) and projects involving open space improvement (e.g., parks and trails) are included in this subsector. Establishments whose primary activity is the subdivision of land into individual building lots usually perform various additional site-improvement activities (e.g., road building and utility line installation) and are included in this subsector.
Specialty Trade Contractors (NAICS 238) make up the remaining 15% of sector GDP. This subsector includes trade activities generally needed in the construction of buildings and structures, such as masonry, painting, or electrical work. Specialty trade contractors usually work under contract to general contractors or operative builders to carry out a component of an overall project. However, they may contract directly with the owner of the property, especially in renovation and repair construction.
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Residential building construction | 8,388.4 | 8,511.0 | 7,385.7 | 7,334.0 | 7,408.8 | 6,759.9 | 6,398.4 | 7,468.8 | 7,485.6 | 7,161.6 | 8,143.1 |
| Non-residential building construction | 2,938.5 | 3,491.5 | 3,390.8 | 2,878.6 | 3,239.9 | 3,312.8 | 2,464.9 | 2,703.3 | 2,620.2 | 2,611.9 | 2,636.7 |
| Engineering and other construction activities | 29,237.6 | 21,456.7 | 16,148.7 | 17,259.9 | 15,952.6 | 14,594.8 | 11,901.2 | 13,257.9 | 15,666.3 | 15,119.4 | 15,442.1 |
| Repair construction | 3,171.3 | 3,324.1 | 2,849.0 | 2,864.5 | 2,902.4 | 2,866.8 | 2,994.1 | 3,109.0 | 3,067.6 | 2,988.5 | 2,940.3 |
* Chained (2017) dollars
Source: Statistics Canada, Gross Domestic Product by Industry - Provincial and Territorial (Annual)
| Construction (NAICS 23) | Others | |
|---|---|---|
| 7.58% | 92.42% |
* Current dollars
Source: Statistics Canada, Gross Domestic Product by Industry - Provincial and Territorial (Annual)
Geographical distribution of employment
Construction employment in Alberta is distributed across economic regions. The Edmonton economic region accounts for 36% of the province's construction workforce. The Calgary economic region represents 38% of construction employment, reflecting the region’s strong commercial construction activity.
Resource development drives the Wood Buffalo-Cold Lake economic region, which employs 3% of Alberta’s construction workforce.
The Red Deer-Camrose corridor accounts for 9.4% of construction employment.
The remaining 13% of construction employment is distributed across rural Alberta, including the Lethbridge-Medicine Hat, Banff-Jasper-Rocky Mountain House and Athabasca-Grande Prairie economic regions.
| Economic Regions, Alberta | Employment (x 1,000), 2024 | Sector (NAICS 23) Share (%) |
|---|---|---|
| Lethbridge-Medicine Hat, Alberta | 14.0 | 5.68% |
| Camrose-Drumheller, Alberta | 11.8 | 4.79% |
| Calgary, Alberta | 94.6 | 38.38% |
| Banff-Jasper-Rocky Mountain House and Athabasca-Grande Prairie-Peace River, Alberta | 17.7 | 7.18% |
| Red Deer, Alberta | 11.3 | 4.58% |
| Edmonton, Alberta | 89.0 | 36.11% |
| Wood Buffalo-Cold Lake, Alberta | 8.1 | 3.29% |
Source: Statistics Canada, Labour Force Survey
Wages vary regionally in response to local market dynamics and project types. The Wood Buffalo-Cold Lake region commands the highest average wages across all NOC codes; general construction supervisors (NOC 72021) earn a median hourly wage of $42/hour, approximately 9% above the provincial median.
Significant inter-regional labor mobility exists, with 35% of the workforce engaging in employment across multiple regions. This mobility is especially prevalent among specialized trades. The Edmonton-Calgary corridor functions as the primary labor market, particularly during major project cycles.
Workforce
Workforce characteristics
The Alberta construction sector employed 266,100 workers as of March 2025, with employment fluctuating seasonally from 225,500 in January 2024 to a peak of 262,100 in August 2024.
Women make up 7% of on-site tradespeople, with higher representation in residential construction. The top five trades and occupations in which women tend to be employed are trade helpers and labourers (18% of all tradeswomen), construction managers (12%), contractors and supervisors (8%), electricians (8%), and construction estimators (8%). In 2024, there were approximately 39,140 women employed in Alberta’s construction industry, of which 32% worked on site, directly on construction projects, while the remaining 68% worked off site, primarily in administrative and management-related occupations. Indigenous workers made up 6.6% of Alberta’s construction workforce in 2023, up from 5.9% in 2014. Immigrants are underrepresented in the construction industry, making up 19.9% of the construction workforce in Alberta and 28.2% of the total labour force.
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 15 to 24 years | 31.3 | 33.6 | 26.8 | 23.0 | 24.4 | 20.1 | 16.1 | 20.5 | 19.6 | 21.7 | 24.6 |
| 25 to 54 years | 151.1 | 154.6 | 150.7 | 144.6 | 138.9 | 142.5 | 132.4 | 132.2 | 145.6 | 148.2 | 148.6 |
| 55 years and over | 33.0 | 30.9 | 33.6 | 32.0 | 34.3 | 32.2 | 34.5 | 36.7 | 33.1 | 34.3 | 32.9 |
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 15 to 24 years | 4.3 | 3.9 | 3.3 | 3.7 | 2.7 | 3.4 | -* | 3.8 | 1.6 | 3.5 | 2.6 |
| 25 to 54 years | 26.9 | 26.6 | 22.4 | 22.8 | 29.1 | 29.0 | 25.7 | 24.7 | 25.6 | 28.5 | 29.2 |
| 55 years and over | 6.3 | 5.2 | 5.7 | 6.5 | 5.5 | 5.5 | 7.5 | 7.4 | 7.3 | 3.9 | 8.5 |
-* suppressed to meet the confidentiality requirements of the Statistics Act
Source: Statistics Canada, Labour Force Survey
Occupations of Interest
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Plumbers (NOC 72300) | 8.1 | 11.3 | 10.0 | 6.4 | 8.8 | 8.1 | 6.1 | 9.1 | 9.6 | 10.3 | 13.3 |
Source: Statistics Canada, Labour Force Survey, ESDC custom table
Journeyperson plumbers (NOC 72300) wage rates vary but generally range from $28 to $37 an hour plus benefits, with the same yearly earning structure for apprentices as electricians. Plumbers plan, install and service plumbing systems used to transport water, waste, gases or hot liquids. Steamfitters, pipefitters, and sprinkler system installers (NOC 72301) work with piping systems which carry water, steam, chemicals or fuel used in heating, cooling, lubricating, and other processes. Wage rates vary but generally range from $35 to $45 an hour plus benefits.
Carpenters (NOC 72310) have wages that vary significantly depending on specialization. Wages generally range from $25 to $42 an hour plus benefits.
Electricians and power system electricians (NOC 72200 and 72202, respectively) in Alberta’s construction sector install, repair and maintain electrical systems for all types of buildings. Journeyperson electricians wage rates vary but generally range from $30 to $50 an hour plus benefits. Apprentices earn at least 50% of the journeyperson wage rate in their place of employment in the first year, 60% in the second, 70% in the third and 80% in the fourth. Power system electricians (specializing in electrical power generation, transmission and distribution systems) command higher average wages ranging from $40 to $55 an hour plus benefits, while industrial electricians (72201), who work in factories, plants, mines, shipyards, and other industrial establishments, earn a median wage of $44.50 per hour.
Metal workers and metal welders (NOC 72102 and 72106, respectively) experience wage differentiation based on certification levels. Wages for journeyperson welders vary but generally range from $25 to $50 per hour plus benefits. Sheet metal workers generally earn between $18 and $36 per hour plus benefits.
Recent History
The 2015 oil price crash triggered a sharp contraction in Alberta’s construction sector, especially in oil sands-related engineering construction. In 2020, the COVID-19 pandemic further disrupted construction activity, though Alberta’s sector proved relatively resilient compared to other provinces. Engineering construction saw a resurgence post-2020, supported by infrastructure projects and planned commercial expansions in the oil sector.
Alberta experienced record population growth in 2023 and 2024, driven by high levels of interprovincial migration (due in part to housing affordability) and strong international immigration. This surge fueled a residential construction boom with investment rising 11% in 2024 across new housing, renovations and maintenance. Non-residential construction also grew 3% in 2024 led by industrial, commercial and institutional buildings. Although activity in residential construction has been constrained by high interest rates and rising construction costs elsewhere in the country, Alberta’s residential sector grew across new housing, renovations and residential maintenance.
Calgary and Edmonton, Alberta’s largest urban centers, showed the strongest employment growth in construction from 2013 to 2023, driven mainly by commercial development and transit expansion projects. Edmonton’s employment growth was fueled primarily by light rail transit expansions and institutional construction.
Mid-sized regions experienced moderate but steady growth. Red Deer and Lethbridge-Medicine Hat benefited from a variety of projects including healthcare, education, and industrial developments.
More modest growth was seen in the combined Banff-Jasper-Rocky Mountain House and Athabasca-Grande Prairie-Peace River region, reflecting a balance between tourism infrastructure development and resource sector fluctuations. Camrose-Drumheller’s employment growth was supported by renewable energy projects that diversified traditional employment patterns.
These regional employment trends align with projections for continued construction employment growth, especially in non-residential sectors. The data indicates a sector that is both recovering and transforming, with urban centers leading growth and resource-dependent regions showing signs of diversification.
Employment Outlook
BuildForce Canada’s 2025–2034 outlook for Alberta calls for employment to grow in both residential and non-residential sectors across the forecast period. The residential sector benefits from strong short-term growth, driven by expectations of lower interest rates boosting new-housing construction. Later years see this growth slow, replaced by strong demand for residential renovations and maintenance. Residential employment is expected to rise to a peak of 8% above 2024 levels by 2026 before retreating to near-2024 levels by 2034.
Non-residential activity, meanwhile, is projected to stabilize through the near term as several major engineering construction projects (for example, the Strathcona refinery expansion, Air Products Hydrogen Energy Complex, Telus network upgrades, and many roads, highways, and bridge projects) pass peak activity levels or conclude, which is mostly offset by further increased levels of construction of ICI buildings. In later years, growth is driven by strong gains in the construction of ICI buildings. These factors combine to increase employment 9% above 2024 levels by 2034.
Looking forward, moderate growth is anticipated, largely supported by public infrastructure investments for energy and transportation projects. However, demographic challenges persist, with 43,400 of skilled trades workers approaching retirement age. Rising construction demands and projected retirements are expected to create hiring requirements of as many as 59,000 workers in Alberta by 2034.
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 Information Directorate, Service Canada - Western Canada and Territories (W-T) Region
For further information, please contact the Labour Market Information Directorate here.
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