Construction 2016 SECTOR SPOTLIGHT NAICS 23. Report Contents. What is this industry sector? STATISTICS CANADA DEFINITION SECTOR STRUCTURE

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1 2016 SECTOR SPOTLIGHT NAICS 23 Construction Report Contents What is this industry sector? STATISTICS CANADA DEFINITION SECTOR STRUCTURE How does this sector stack up in Ottawa? OTTAWA DASHBOARD HIGHLIGHTS Sector Employment (Jobs) REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada) 2016 EMPLOYMENT A SUBSECTOR VIEW 2016 EMPLOYMENT SNAPSHOT INDUSTRY GROUPS JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook) KEY OCCUPATIONS IN THE SECTOR Sector Self-Employment SECTOR AT A GLANCE A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT Sector Business & Employer Counts SECTOR AT A GLANCE BUSINESS COUNTS AT INDUSTRY GROUP LEVEL Online Supply & Demand ONLINE JOB POSTINGS ONLINE JOB SEEKER PROFILES In the News GAINS LOSSES TRENDS/PROJECTIONS Sample Report Industry Summaries Note on geography: This report looks at data for the Ottawa Census subdivision. Census subdivision (CSD) is the general term for municipalities (as determined by provincial/territorial legislation). Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 1

2 What is this industry sector? STATISTICS CANADA DEFINITION This sector comprises establishments primarily engaged in constructing, repairing and renovating buildings and engineering works, and in subdividing and developing land. These establishments may operate on their own account or under contract to other establishments or property owners. They may produce complete projects or just parts of projects. Establishments often subcontract some or all of the work involved in a project, or work together in joint ventures. Establishments may produce new, or undertake repairs and renovations to existing structures. There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors. Establishments are distinguished initially between those that undertake projects that require several different activities (known as trades) to be performed (NAICS 236 and 237), and establishments that specialize in one trade (NAICS 238). A significant amount of work is performed by enterprises that are primarily engaged in some business other than, for these enterprises' own use, using employees and equipment of the enterprise. This activity is not included in the sector unless the work performed is the primary activity of a separate establishment of the enterprise. However, if separate establishments do exist, they are classified in the sector. SECTOR STRUCTURE Below we show this sector s three subsectors (3-digit level), as well as the 4-digit level Industry Groups that will be explored in this report. SUBSECTOR NAICS Construction of buildings Code Industry group 2361 Residential building 2362 Non-residential building SUBSECTOR NAICS Heavy and civil engineering Code Industry group 2371 Utility system 2372 Land subdivision 2373 Highway, street and bridge 2379 Other heavy and civil engineering SUBSECTOR NAICS Specialty trade contractors Code Industry group 2381 Foundation, structure, and building exterior contractors 2382 Building equipment contractors 2383 Building finishing contractors 2389 Other specialty trade contractors Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 2

3 How does this sector stack up in Ottawa? OTTAWA DASHBOARD The graphic below ranks Ottawa s Top 12 sectors (based on # of jobs in 2016) and shows how Construction (NAICS 23) stacks up against the other sectors on a dashboard highlighting key local labour market information (LMI). HIGHLIGHTS 5% of Ottawa jobs are in Construction. Job growth in this sector over the past three years accounted for 10% of all job gains in Ottawa. Ottawa is 25% below the national average in terms of share of workers in this industry average annual salary for jobs in this sector was $60,856; however, it is important to note that this does not provide a full view, given the high percentage of self-employed in this sector. This sector accounts for 8% of all businesses in Ottawa and 9% of all employers (businesses with at least one employee). This sector accounted for 1% of all Ottawa online job ads in 2016, with the most ads posted by employers in Non-residential building. 39% of active online job seekers in this sector in Q identified Trades, transport and equipment operators and related occupations as the most recent occupation group in which they worked. Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 3

4 Sector Employment (Jobs) REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada) Region 2011 Jobs 2016 Jobs Change % Change Ottawa 29,884 32,621 2, % Ontario 424, ,592 47, % Canada 1,238,080 1,377, , % 2016 EMPLOYMENT A SUBSECTOR VIEW Job numbers, growth rate and forecast number of new jobs NAICS Description % Change ( ) Forecast change ( ) 238 Specialty trade contractors 18,038 17,928 18,319 18,558 19,971 20,012 11% Construction of buildings 9,509 9,433 9,115 8,894 10,301 10,317 8% Heavy and civil engineering 2,337 2,462 2,397 2,294 2,318 2,292-2% 7 Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 4

5 2016 EMPLOYMENT SNAPSHOT INDUSTRY GROUPS Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 5

6 JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook) Job numbers, growth rate and forecast number of new jobs* NAICS Description % Change ( ) Forecast change ( ) 2382 Building equipment contractors 7,880 7,786 7,971 8,173 9,015 9,068 15% Residential building 2381 Foundation, structure, and building exterior contractors 7,374 7,290 7,091 6,617 7,270 7,239-2% 47 3,827 4,128 4,385 4,491 4,741 4,775 25% Building finishing contractors 4,575 4,237 4,206 4,171 4,402 4,374-4% Non-residential building 2389 Other specialty trade contractors 2,135 2,142 2,024 2,278 3,031 3,078 44% 168 1,756 1,778 1,757 1,723 1,814 1,794 2% Utility system % Highway, street and bridge % Land subdivision % Other heavy and civil engineering % 15 SECTOR TOTAL 29,884 29,823 29,831 29,746 32,590 32,621 9% 716 Source: EMSI Analyst 2016 (*EMSI recommends taking occupation data below 500 jobs with a grain of salt because of source data sampling sizes; occupation data is not considered reliable where fewer than 100 jobs) Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 6

7 KEY OCCUPATIONS IN THE SECTOR The job data shown thus far has focused on number of workers in your sector and its industry groups. Now we take a look at what these workers are doing by focusing on the key occupations in your sector. Top Ten Occupations (Sector job numbers and growth over past five years) NOC Description Employed in Industry (2011) Employed in Industry (2016) Change ( ) % Change ( ) % of Total Industry Jobs (2015) 0712 Home building and renovation managers 3,194 2, % 9% 7611 Construction trades helpers and labourers 2,217 2, % 8% 7271 Carpenters 1,878 2, % 7% 7241 Electricians (except industrial and power system) 7205 Contractors and supervisors, other trades, installers, repairers and servicers 1,520 1, % 5% 1,697 1, % 5% 7251 Plumbers 748 1, % 4% 0711 Construction managers 1,455 1, % 3% 7521 Heavy equipment operators (except crane) % 3% 7313 Refrigeration and air conditioning mechanics % 3% 1221 Administrative officers % 2% Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 7

8 Sector Self-Employment (2016) SECTOR AT A GLANCE A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT The chart below shows share of self-employment for the overall sector and for each industry group. Sector Ranking Share of workers self-employed in each industry group Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 8

9 Sector Business & Employer Counts (June 2016) SECTOR AT A GLANCE BUSINESS COUNTS AT INDUSTRY GROUP LEVEL Code Description None Total 2361 Residential building ,395 2, Building finishing contractors ,108 1, Building equipment contractors 2389 Other specialty trade contractors 2381 Foundation, structure, and building exterior contractors , Land subdivision Non-residential building 2373 Highway, street and bridge Utility system Other heavy and civil engineering Source: EMSI Analyst 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 9

10 Online Supply & Demand (2016) ONLINE JOB POSTINGS A Closer Look at Skill Level Required in Job Postings (Sector vs. Ottawa overall) The chart below shows skill level requirements for jobs posted in this sector versus those posted for all Ottawa sectors. 0% 20% 40% 60% A: University Education B: College or Vocational Education or Apprenticeship Training C: Secondary School and/or Occupation-Specific Training D: On-the-job Training or No Formal Education Required Z: Unknown 4% 11% 13% 14% 14% 9% 28% 28% 35% 44% Construction All sectors Source: Vicinity Jobs 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 10

11 ONLINE JOB SEEKER PROFILES In October 2016, Ottawa Employment Hub subscribed to newly published data providing insight into local labour supply. This information is only available from October 2016 onward so we provide below the data for Q The numbers shown reflect Job Profiles that were either added or updated within a 30-day span by job seekers living in Ottawa between October and December A Closer Look at Occupations of those with Active Job Profiles The chart below shows number of job seeker profiles by occupation group most recently worked in. Source: Vicinity Jobs 2016 Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 11

12 In the News Highlights GAINS Dec 19, 2016 Government of Canada News Release Highway 417 expansion project to support safer and more efficient driving The governments of Canada and Ontario are each investing up to $47.5M into the expansion of Highway 417 and rehabilitation of Merivale Road Bridge. Dec 13, 2016 Government of Ontario News Release Ontario Supporting Modern Science and Technology Facilities for Ottawa Students The governments of Ontario and Canada are partnering with the University of Ottawa to invest over $115M in a new Science, Technology, Engineering and Mathematics (STEM) Complex at the University of Ottawa. The funding will be provided mostly by the University of Ottawa. The will take a number of months and will require of number of skilled workers, providing good income for the duration of the project. LOSSES Oct 7, 2016 Ottawa Business Journal Ottawa-Gatineau sheds 2,100 jobs in September Looks at employment in the industry on a year-over-year basis and reports that employment in Ottawa s sector recorded one of the sharpest downturns. TRENDS/PROJECTIONS Jan 13, 2017 Ottawa Citizen Hold the 2017 party: Ottawa s economic engines government, high-tech aren t firing on all cylinders All signs point to a strong rapidly growing economy for Ottawa, but for some reason it s not quite growing as expected. Points to some sluggish (but stable) trends in the high-tech sector, and slower than expected Federal Government hiring. However, with Federal infrastructure and renovation projects, is expected to see some extra hiring. In the Ottawa and Gatineau regions, is expected to employ 42,000 people in which is about 13% higher than in Nov 14, 2016 Ottawa Business Journal Ottawa-Gatineau economy forecast to grow 2.2% in 2017 Real GDP growth in Ottawa is at the highest that it s been in seven years. The 150 th anniversary and celebration of Canada is credited as being one of the main drivers of this growth. The industry, especially nonresidential, is expected to create a large boost for the economy as large federal contracts such as the renovation of Parliament Hill is underway. Home-builders are also starting to expand their projects to take advantage of this expected growth in Ottawa. Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 12

13 Sample Report Industry Summaries Below is a sample report that can be requested for any industry at the 3- or 4-digit (subsector or industry group) level. Some of these may also be available on the Labour Market Ottawa web portal. Industry Summary for Building equipment contractors 9, % Regional Trends Jobs (2015) % Change ( ) 14% below National average Nation: 14.5% Region 2011 Jobs 2016 Jobs Change % Change Ottawa 7,880 9,068 1, % Ontario 111, ,103 15, % Canada 291, ,977 42, % Top Occupations Employed by this Industry* Description Employed in Industry (2015) % of Total Jobs in Industry (2015) Electricians (except industrial and power system) 1, % Plumbers 1, % Refrigeration and air conditioning mechanics % Contractors and supervisors, electrical trades and telecommunications occupations % Elevator constructors and mechanics % Source: EMSI Analyst 2016 ( *EMSI recommends taking occupation data below 500 jobs with a grain of salt because of source data sampling sizes; occupation data is not considered reliable where fewer than 100 jobs) Local Employment Planning Council 2016 SECTOR SPOTLIGHT (Published February 2017) 13

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