LABOUR MARKET ASSESSMENT full report

Transcription

1 Nova Scotia 2015 LABOUR MARKET ASSESSMENT full report Research by: Nova Scotia Construction Sector Council Industrial ~ Commercial ~ Institutional

2 Acknowledgements Group ATN Consulting Inc. (GATN) would like to thank the Nova Scotia Construction Industry, the Nova Scotia Construction Sector Council (NSCSC) and their study partners (Steering Committee) for their involvement in the study process. The Labour Market Assessment (LMA) Steering Committee included: Cape Breton Island Building and Construction Trades Council Construction Association of Nova Scotia (CANS) Mainland Nova Scotia Building and Construction Trades Council Merit Nova Scotia Nova Scotia Apprenticeship Agency (NSAA) Nova Scotia Community College (NSCC) Nova Scotia Construction Labour Relations Association (NSCLRA) Nova Scotia Department of Labour and Advanced Education (LAE) The steering committee s guidance, support, and insightful comments throughout the study helped with research activities and the preparation of the report. Special thanks are extended to: The NSAA, who assisted the survey process by circulating the Worker Survey to registered apprentices in selected Industrial-Commercial- Institutional (ICI) trades-related training programs, as well as recently certified journeypersons. This in-kind support increased the reach and promotion of the survey process, and helped contribute to the high number of completed surveys. Our project sponsors, Motion Computing 1 and Dymaxion Research Limited in Halifax 2, who donated the prizes that were offered to study participants in recognition of their participation. The NSCC, which allowed our team to survey trade-related students as part of our research into future ICI entrants. Finally, our appreciation is also extended to the many individuals who invested their time providing thoughtful responses to the research questions. This includes all the employers, unions, workers and industry stakeholders who took the time to speak with our research team. The Consulting Team: Group ATN Consulting Inc. Thomas McGuire, Project Manager Ron L Esperance, President Corinne MacLellan, Senior Associate Suite 100, 5663 Cornwallis Street, Halifax, NS, B3K 1B6 info@groupatn.ca 1 Motion Computing empowers businesses worldwide with technology solutions designed to optimize the performance of mobile workers. Through industry-leading rugged tablet PCs, tailored accessories and services, Motion delivers mobile technology solutions customized to business workflows. Purposely built for vertical markets including field service, healthcare, utilities, construction, retail, public safety and first responders, Motion s suite of mobile technology solutions improves worker productivity, data accuracy and security, while enabling real-time decision-making at the point of service ( 2 Dymaxion Research Limited is one of Nova Scotia's leading Information Technology (IT) companies, providing premier computing products and technical services to businesses for over 40 years. As a Motion Computing Gold Certified partner, Dymaxion delivers comprehensive, industry-leading mobile computing solutions to the field service and construction industries in Atlantic Canada (

3 Table of Contents Executive Summary... vi Study Context... vi Survey Highlights... viii Student Survey... ix Worker Survey...xiii Employer Survey... xvi Business Manager Surveys... xviii Key Findings... xix The State of ICI Labour Supply and Demand... xxiii Strategic Recommendations... xxvi Other Recommendations... xxviii 1 Introduction Study Purpose And Scope Context Deliverables Methodology Survey Completions Report Outline Student Survey Summary Program Area & Campus Experience, Education, And Certifications Learning Preference Employment & Student Status Student Mobility Plans Information Technology (IT) Student Perspectives On Becoming A Tradesperson Career Plans Student Demographic Profile Student Follow-Up Research Key Observations: Student Survey Worker Survey Summary ii Nova Scotia 2015 Labour Market Assessment

4 3.1 Trades Training And Current Trade Years & Role In Trades Role As A Journeyperson Becoming An Apprentice Availability For ICI Work Unemployment Compensation, Experience, Education, And Certifications Worker Mobility Use Of Information Technology (IT) For Information Management IT & Learning Perspective On Becoming A Tradesperson Career Plans & Retirement Demographic Profile Follow-Up Research Key Observations: Worker Survey Employer Survey Employment Employment Flows Understanding Labour Pools & Hiring Career Plans & Retirement Education ICI Sectors & Location Of Work Worker Mobility Use Of Information Technology For Information Management Perspective on Becoming a Tradesperson Career Paths In ICI Demographic Profile Follow-Up Research Key Observations: Employer Survey Business Manager Findings Business Manager Perceptions About Labour Supply and Demand Hiring Issues Attracting Workers to ICI iii Nova Scotia 2015 Labour Market Assessment

5 6 Summary of Findings Factors Affecting Apprenticeship Labour Supply Demand Considerations in ICI Procurement Labour Mobility Retirement Hiring Practices Expectation of ICI Employment and Earnings Role of Orientation, Career Demonstrations, and Industry Participation Opportunities Input from Selected Employment Service Organizations Labour Supply and Demand Gap Summary of Data Analysis / State of the Sector Spending Analysis Capital Construction Summary: The State of ICI Labour Supply and Demand Recommendations Strategic Recommendations Other Recommendations Annex A: Interview Participants, by Organization Annex B: Selected Cross Tabulations Annex C: References Project funding was provided in part by the Department of Labour and Advanced Education (LAE) and the Nova Scotia Construction Sector Council (NSCSC). 3 3 The opinions and interpretations in this publication are those of the authors and do not necessarily reflect those of the NSCSC, the Steering Committee, the organizations they represent or the Government of Nova Scotia. iv Nova Scotia 2015 Labour Market Assessment

6 Figures Figure 1.1: Project Work Plan... 9 Figure 2.2: NSCC Campus Represented Figure 2.3: Highest Educational Attainment, Student Survey Figure 2.4: Location of Planned Move, Student Survey Figure 2.5: Wage Expectations on Study Completion, Student Survey Figure 2.6: Wage Expectations with Industry Experience, Student Survey Figure 3.7: Trade areas in which workers have received training, Worker Survey Figure 3.8: Year Certification Was Obtained, Worker Survey Figure 3.9: Age by Status, Worker Survey Figure 4.10: Issues for Employers Finding Workers, Employer Survey Figure 6.11: Construction Labour Force Survey Estimate Figure 6.12: Employment and Labour Force: Non-Residential - Nova Scotia (BuildForce Canada) Figure 6.13: NS Construction BuildForce Canada Data, Employment Estimates Figure 6.14: NS Non-residential investment Statistics Canada, Table Figure 6.15: Halifax Non-residential investment Statistics Canada, Table Figure 6.16: Halifax Non-residential investment Statistics Canada, Table Figure 6.17: Building permits, by type of structure, Nova Scotia, (CANSIM: ) Figure 6.18: Capital and repair expenditures, by sector for Nova Scotia, annual (dollars x 1,000,000) (CANSIM: ) Figure B.19: Program Area of Study, Student Survey Tables Table 2.1: The Percentage of Job-Seeking Students Who Plan To Move, Student Survey Table 3.1: Barriers to the use of ICT in the ICI workplace, identified by workers Table 3.2: Factors influencing workers to enter into ICI trades Table 3.3: Retirement plans among workers Table 3.4: Post retirement ICI attachment plans among workers Table 3.5: Average age of workers by journeyperson status Table 3.6: Gender distribution of workers by journeyperson status Table 4.1: Employer post retirement plans Table 4.2: Employer s expected average education level among various ICI roles Table 4.3: Employer perspective on ICT usage in ICI work Table B.1: Number of Worker Survey Responses by Trade Training Area (multiple areas of training per respondent), By Age Table B.2: Number of Worker Survey Responses by Trade, by Retirement Plan Table B.3: Number of Worker Survey Responses by Trade and by Registration Status Table B.4: Benefit Types by Registration Status Table B.5: Benefit Types by Age Group Table B.6: Educational Attainment by Age Table B.7: Willingness to Travel/Commute for work by Age Range v Nova Scotia 2015 Labour Market Assessment

7 EXECUTIVE SUMMARY The focus of this project is to generate up-todate, accurate labour market information (LMI), providing ICI industry stakeholders with a solid foundation from which to plan and address human resource and business needs, and effectively represent and influence industry requirements and outcomes going forward. STUDY CONTEXT In 2007, the NSCSC released a demographic study of Nova Scotia's ICI labour force, examining labour supply and demand. This 2015 study is an updated and more in-depth undertaking to assess the current state of the labour market. The importance of skilled trades and the perceived challenges associated with labour supply in the construction sector going forward is a highly topical issue. There is a growing understanding and acceptance of the challenges that give rise to concerns respecting labour supply in the future the Now or Never Report 4 has served to profile the province s unfavourable demography so that its implications are more broadly understood. Moreover, these concerns and challenges are not unique to Nova Scotia. 4 Now or Never: An Urgent Call to Action For Nova Scotians, a Report of the Nova Scotia Commission on Building Our New Economy, February 2014, available at vi Nova Scotia 2015 Labour Market Assessment

8 Rather, these are issues among all Western economies sharing many of the same features, including: aging populations; high levels of youth unemployment; economic challenges resulting in significant labour market dislocations; the impact of technology and globalization; the continuing challenge of a sustained low-interest environment, coupled with high levels of public debt; and Under the new Canada-Nova Scotia Job Fund Agreement (JFA), there is an increased emphasis on employer engagement and involvement in the development and delivery of employment services, to ensure that people are trained for existing jobs. Employers will play a more central role in skills training. Under the previous Nova Scotia Labour Market Agreement employers weren't obligated to invest in training. Under the new JFA they are required to contribute financially, or in-kind, to the training of some workers. a trend toward people remaining in the labour force beyond the traditional retirement age These are all drivers with respect to this study on the ICI labour force, factors that have been carefully considered. The Now or Never Report underscores the importance of skills development and innovation as important bookends to future economic stability and growth. In the announcement accompanying the tabling of the Commission s report, Chairman Ray Ivany noted that because of a combination of economic and demographic factors, we are teetering on the brink of long-term decline. With respect to the problems identified, labour market considerations figure prominently in the Commission s analysis and solution-finding. Provincially, the Department of LAE is moving toward a new approach to providing career services in Nova Scotia. Nationally, the federal government is implementing policy changes which are also having an impact on labour market programming. These include changes to the Employment Insurance (EI) Program, the Temporary Foreign Worker Program, and immigration. vii Nova Scotia 2015 Labour Market Assessment

9 long-term leadership in this area, a factor that is of value to employers, workers, industry associations and government partners. SURVEY HIGHLIGHTS Underpinning this study was an extensive consultation process that was broad-based and inclusive of key stakeholders. Outreach and consultation parties included: Workers (union and non-union); Employers; Business Managers; LAE; Nova Scotia Department of Education and Early Childhood Development; Aboriginal Communities; Construction Association of Nova Scotia (CANS); Mainland Nova Scotia Building and Construction Trades Council; Cape Breton Island Building and Construction Trades Council; Nova Scotia Construction Labour Relations Association (NSCLRA); Nova Scotia Apprenticeship Agency (NSAA); Merit Nova Scotia; and other industry stakeholders A total of 1,413 individual workers, students, employers, and business managers completed surveys, providing a very robust sample for analysis. Depending on the particular survey and the estimates of the total number of possible survey participants in each group, there is an error margin ranging from between +/- 3.40% to +/- 8.54%. Survey Name/ Survey Group Number of Responses 5 Employer Survey 111 Business Manager Survey 17 Student Survey (NSCC + Other Students) 502 Worker Survey 783 Total Participants (Survey Hits) 1,413 Within these parameters, it is also important to note that while the employer group has a higher margin of error, those employers that did provide responses employ over 2,426 workers in construction trades, administration, and management positions. The data from this research is rich and will continue to be relevant and valuable over the next few years. The results highlighted in this report concentrate on key metrics associated with the core mandate of the study and are representative of the level of analysis that is possible through the survey research and consultation undertaken within this study scope. The benchmarking exercise shows the NSCSC to be in the vanguard of organizations across the country proactively managing complex issues related to labour supply and workforce planning. The NSCSC is to be commended for its 5 Survey responses are presented in section 2, 3, 4, and 5. Where frequencies (percentages) are indicated, they pertain to the number of individuals responding to a particular question and not the entire survey sample. viii Nova Scotia 2015 Labour Market Assessment

10 STUDENT SURVEY Average Age: 27 Years Males: 70% Females: 29% Unidentified: 1% The purpose of the Student Survey was to invite current students enrolled at NSCC and other training providers in ICI-related programs, including 30 Red Seal pre-apprenticeship programs and 10 Canadian Technology Accreditation Board (CTAB) accredited engineering technician technology programs, from across Nova Scotia, to highlight their perspectives on future careers in trades and, particularly, in the ICI sector. The survey was made available through a web link that was e- mailed by the NSCC directly to all students in relevant program areas. The following provides a summary of the Student Survey findings: The majority of students surveyed were new to trades. They had not completed any other trades programs or certifications prior to enrolling in their current programs. Interest in apprenticeship was high, with the majority of students surveyed (63%) indicating that they planned to register for apprenticeships or are already registered as youth apprentices. This level of interest should capture the attention of industry and, in particular, the NSAA, especially with respect to the agency s need to address the demands that the student cohort places on the system. The programs that were included in the survey were selected because of their relation to the building systems work involved in all aspects of construction from the planning phases of ICI onward. It should be noted, however, that some program graduates may become employed by companies that provide services outside of direct ICI-related work. A second Student Survey was made available to students registered in private training institutions and a web link was provided to these institutions for circulation to their students. The eight responses generated through this process are combined with the findings presented in this chapter. Over the course of the study, the survey generated 502 responses (497 from NSCC and 8 student surveys generated through other survey channels), providing sufficient data on a range of characteristics to enable statistically reliable analysis of the sample population. 6 Most (65%) respondents indicated that, prior to starting training in trades, they worked in another sector. The largest share was employed in retail sales (23%), while 19% selected other named sectors, including fishing, security and military service. Of those that have experience in another sector, the average tenure was 8.8 years. Note that several students reported as many as 40 years of previous experience. Almost one third (32%) said they had no previous sector experience and came to the program area directly from secondary school. More than half of the students surveyed (51%) indicated they plan to move or re-locate for work within the next 3 years. Of these only 10% say they will relocate within Nova Scotia. Planned mobility may well be a significant concern for industry. There is a marked perception that a lack of job 6 Except for program questions specific to the NSCC, all student surveys (the eight additional student surveys through non-nscc channels, combined with the NSCC) are summarized in this section. ix Nova Scotia 2015 Labour Market Assessment

11 opportunities exist in Nova Scotia. While it is difficult to assess how intentions may translate into action, of those students who indicated they would move for work within the next 3 years: o o o 44% are unsure where they will eventually relocate; 43% identified a specific location where they plan to relocate; and 3% said they plan to commute for work outside of Nova Scotia This is an issue that will be of interest to policy makers, particularly in light of expected major projects. by the belief that they would have a better quality of life where they currently were (18%) and that there were plenty of work opportunities close to home (13%). The majority of trades students indicated that the pursuit of trades training is their first choice for training and education (74%). The level of employment students expect per year, measured by hours worked per year: less than 1,500 hours (11%), between 1,500 hours and a full year (2,000 hours) (28%), more than 2,000 hours (34%), and 26% are not sure. The majority of students (72%) expect to become employed as soon as 2 months after completing their studies. Of these respondents, 11% indicated that future employment is already secured. An additional 14% expect they will find employment within 3 to 6 months of study completion and 1% believe that securing employment may take longer, but not in excess of 12 months. 12% are not sure. Rural campuses had a slightly higher share of students who plan to move. Students at the Strait Area Campus were the most likely to re-locate, whereas students at the Waterfront Campus were, on average, relatively less likely to move; however, Cumberland Campus students were the very least likely to re-locate. Among those who are not planning to move, personal reasons for staying were cited most often (44%), followed Information gaps exist: only 30% of students surveyed indicated they knew where to seek information on working in the trades. This finding underscores the importance of program marketing and information dissemination among all partners, including government and industry. Interview findings with industry stakeholders suggest they believe that students may also require additional information on apprenticeship and the apprenticeship system. The stakeholders indicated that some students may believe that an individual becomes a journeyperson immediately upon completion of a program of trade studies and / or if one engages in x Nova Scotia 2015 Labour Market Assessment

12 additional training following completion of in-school training. Similarly, interviews suggest that some students thought that enrollment in NSCC rendered one an apprentice. It is important to note that such misconceptions are not demonstrated throughout the survey data and may not be systemic. In keeping with student s self-acknowledged need for enhanced information on trades and trades training, mechanisms to facilitate a thorough understanding of the apprenticeship stream are very important. As noted, the vast majority of students surveyed (90%) preferred to learn through hands-on practices. On-the-job learning and learning from instructors were also important and highly preferred methods. This trio of learning methods is the cornerstone of the apprenticeship system, and, hence, it is important that students fully understand that these are the primary focus of activities and methods utilized within the apprenticeship system. Where will you be moving / relocating? n=213 Don't know/not sure Alberta 19.0% Within Nova Scotia 9.9% Other 6.9% British Columbia 6.9% Ontario 3.4% Newfoundland and 2.2% Saskatchewan 1.3% Prince Edward Island 0.9% New Brunswick 0.9% Yukon 0.4% Nunavut 0.4% Northwest Territories 0.4% Quebec 0.0% Manitoba 0.0% 44.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Percent of Movers See Section 2 (Full Report) Student Survey Summary Figure 2.4 xi Nova Scotia 2015 Labour Market Assessment

13 When you finish your studies, how much money do you expect you will earn per hour as your starting wage (excluding benefits)? n=439 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Minimum wage ($10.30) 1% $10.31 to $ % $12.00 to $ % $14.00 to $15.99 $16.00 to $17.99 $18.00 to $ % 12% 13% $20.00 to $ % $25.00 to $ % $30.00 to $ % $35.00 to $39.99 $40.00 or more 3% 4% Prefer Not to Answer 5% Don't Know/Not Sure 11% See Section 2 (Full Report) Student Survey Summary Figure 2.5 xii Nova Scotia 2015 Labour Market Assessment

14 WORKER SURVEY Average Worker Age: 39 Years (Males: 94%, Females: 6%) Journeypersons: 44 Years (Male: 97%, Female: 3%) Apprentices: 31 Years (Male: 94%, Female: 6%) The purpose of the Worker Survey was to invite current ICI workers from across Nova Scotia to highlight their perspectives on their trades careers. Unlike the Student Survey, the Worker Survey was promoted using a social media strategy, which included both workers and employers. The survey generated 783 responses, providing sufficient data on a range of characteristics to enable statistically reliable analysis of the sample population. The following section provides a summary of the Worker Survey findings: The survey of ICI construction workers generated 783 responses among workers who, on average, worked within the ICI sector for more than 13 years. 53% of those surveyed selfidentified as a certified journeyperson possessing a Certificate of Qualification, while 33% indicated they were registered as apprentices in Nova Scotia. Journeypersons were, on average, 44 years of age. The average age of apprentices was 31 years. Interestingly, for every male who was not an apprentice but planned to become one, there were 10 females who were not apprentices but planned to become one. Being Red Seal Certified was reported by 51% of the journeypersons surveyed and, of those who were certified journeypersons, 66% had worked in either a supervisory or foreperson role, although only 31% were working in these roles when surveyed. Lack of work and lack of compensation for higher-levels of responsibility and associated liabilities were among some of the reasons cited for not presently working in these positions. The majority of the journeypersons reported having trained others as apprentices at one or more points during their career (74%). Among those in the sample registered as apprentices, reasons for choosing the apprenticeship stream included the prospect of improving career progression (73%), better wages (72%), enhanced training options (58%), and compulsory certification (51%). Underemployment was reported by 34% of the workers who indicated that they worked less than they desired over the preceding 24 months. Of all workers, an average of 15 months was spent working in ICI over the previous two years (63% of their work time); Utilization was better for those who self-identified as journeypersons. Within this group, 29% said they worked less than they wanted during the previous 24 months. Among those who reported underemployment, 80% believed this was due to a lack of work in ICI construction. 493 respondents offered comments on their current wages: o 20% earned less than $20 per hour; xiii Nova Scotia 2015 Labour Market Assessment

15 o o o o 32% earned more than $20 but less than $30 per hour; 30% earned more than $30 but less than $40 per hour; 14% earned more than $40 per hour, and 4% chose not to provide any information on their remuneration For every one construction worker there were, on average, 2.5 members of a household depending, in part, on that worker s ICI income. For the majority of workers, the dependency was high; for 79% of ICI workers, their trade-related employment was the main source of household income. ICI workers are well-educated, with 82% having achieved the equivalent or more than a post-secondary certificate / diploma from a trade school / community college / technical college. In terms of current training, 39% of respondents said they were actively working towards a certification, many reporting working toward their Red Seal Certification. Willingness to travel / commute for work was widespread. More than half of all workers (58%) indicated they were willing to commute / travel temporarily beyond Atlantic Canada in order to obtain work. Higher wages was the main incentive for mobility among ICI workers seeking work outside of Nova Scotia in 2013 (58%), followed by limited opportunities closer to home (49%). Almost half of the workers surveyed said they entered trades through a preapprenticeship or pre-employment training, prior to actually working in ICI (49%), while 34% entered the sector via employment (direct entry). With respect to the compensation packages enjoyed by ICI workers, 78% reported health-related benefits, 51% reported having life insurance / long term disability coverage, and 40% indicated that employers contributed to retirement savings. Training opportunities are provided to the majority of workers (76%). Almost half of the workers surveyed said they knew where to get information on the ICI trades; however, nearly 18% said they did not know where to go to seek information about the ICI construction industry. Consistent with the 2007 study numbers, 55% said they would recommend a career in trades to their children. The majority of workers say they will probably (43%) or definitely (28%) continue with their trade careers until xiv Nova Scotia 2015 Labour Market Assessment

16 retirement. Similarly, as their own careers progress, the respondents will probably (44%) or definitely (20%) train others. With respect to the future, workers were less certain about taking on management roles in ICI, and were also less certain about leaving ICI completely. Only a few workers (16%) appear inclined to start their own ICI businesses. Retirement was 10 or more years away for the majority of workers surveyed (76%). For those who are planning to retire sooner (within the next 5 years), approximately 172 tradespeople will leave the labour force (retire) each year for the next 5 years. Among those that were retiring sooner, the Worker Survey by itself did not provide enough data to draw meaningful conclusions concerning the occupations that might be affected by retirement. However, when considered in the context of employment estimates derived from BuildForce Canada data, a number of occupations emerge as potentially impacted by retirement. These are noted in the subsequent section State of ICI Labour Supply and Demand. Trades In Which Survey Repondents Have Been Trained, n=651 Heavy equipment operator (except crane) 4% Construction millwright (industrial mechanic) 4% InsulatorIronworker 4% 4% Painter 3% Gas fitter 3% Construction electrician (except industrial and power) 23% Roofer 5% Sheet metal worker 7% Welder/soldering machine operator 10% Carpenter (please identify any specialty) 17% Industrial electrician 11% Other (please specify)... 15% Plumber 12% Steamfitter/pipefitter/s prinkler system installer 12% Labourer 12% See Section 3 (Full Report) Worker Survey Summary Figure 3.7 xv Nova Scotia 2015 Labour Market Assessment

17 Worker Survey Age Ranges by Status n= to to to to to to to to I am a Certified Journeyperson (have Certificate of Qualification) I am registered in Nova Scotia as an Apprentice See Section 3 (Full Report) Worker Survey Summary Figure 3.9 EMPLOYER SURVEY Average Age: 53 Years Males: 91% Females: 9% A total of 111 surveys were accessed by employers who employ 2,426 individuals. Key highlights and findings from the employer surveys include: average age of 40 years (from the worker survey, tradespeople s average age is 39 years). Based on the Employer Survey, on average, 85% of total employment in these organizations was comprised of tradespeople, compared with 80% across Canada (based on BuildForce Canada estimates). On average, companies participating in this survey were more likely to work in commercial construction (54%), followed by institutional (17%) and industrial (15%). The balance of participant work time (14%) was spent in sectors other than ICI work, including residential and municipal work. Employers responding to the survey had a relatively high average employment per entity of 44 employees. The majority of these employees were males (91%), with an xvi Nova Scotia 2015 Labour Market Assessment

18 The organizations which reported adding staff, added an average of 4.7 employees per year and, in the next five years, the typical firm expects to see a retirement rate of 4 people per year. The level of steady work flow and a lack of construction activity were areas of concern for employers, as was the competitive pressures from labour markets elsewhere. Labour hiring pressures included wage competition from western Canada, the level of local demand for trade work, as well as issues with respect to the training that new hires receive: a concern with skill levels among the workforce. The majority of employers also felt that better employment options outside of Nova Scotia were an issue with respect to recruiting local workers (75%). Employers generally believed that the main reason workers re-locate for work is the pursuit of higher wages (67%). When asked about education levels they seek, employers indicated generally expecting tradespeople to hold a Certificate of Qualification / Red Seal Certification (51%). In addition, employers reported that younger, more educated people wanting to get into the trades, including first year apprentices, were the most desirable to recruit. This contrasts with what one employer who hired non-certified trades remarked - in those instances, there was a tendency to depend upon on-the-job training to ensure that requisite skill levels were addressed. Employers also identified other factors affecting hiring, including negative attitude / lack of motivation amongst applicants (61%) as well as applicants lacking experience (61%). Employers noted administrative jobs (because the applicants are highly skilled) and labourer and material handler positions (because the work requires less advanced training) are easiest to fill. As well, employers said that younger, more educated people wanting to get into the trades, including first year apprentices, were easy to hire. More than half of the respondents indicated they had worked as tradespersons during their careers in ICI (56%). Just under half of the employers (47%) said that their employees came to the industry through pre-apprenticeship or pre-employment training and 44% were reported to have come to the industry through employment before taking any trades-related training (9% identified other pathways, including immigration to Canada, related community college programs, or other trades-related work). Correspondingly, almost half of the workers surveyed said they entered trades through a pre-apprenticeship or pre-employment training prior to actually working in ICI (49%). Fewer than half of employers (44%) would agree that it is easy to enter the ICI construction industry. The majority (56%) said they knew where to get information about the ICI construction industry. The majority (59%) would recommend a career in the ICI construction trades to their children and 66% would recommend a career in the ICI xvii Nova Scotia 2015 Labour Market Assessment

19 construction trades to other members of their family. For the majority of employers (56%), working in the trades was their first career choice, 25% said it was a second choice, and 19% said it was further down their list of preferred careers. Employers themselves came into the trades in a variety of ways. Preapprenticeship or pre-employment training before working in ICI was the route for 31% of the respondents, 16% held management positions / roles unrelated to construction and 13% say they were employed before taking any trades related training (i.e., direct entry). Other entry ways were identified by 41% (13 employers) and included their linkages to family businesses, working in technology and engineering fields as well as other avenues. In terms of their own retirement, 33% of employers indicated that they plan to retire within the next 5 years (14% plan to retire in 5 to 10 years). 64% of employers noted they had a succession plan in place at their company. BUSINESS MANAGER SURVEYS Business Managers participated in the consultation through both interviews and the completion of an online survey. We heard from 17 Business Managers from across the province. Key findings include: Many business managers stressed that the region s wages were either low relative to the work being done and the standards of living that people need to maintain, or alternatively, they were low relative to competitive wages that were attracting local labour away from Nova Scotia. In general, business managers do not foresee labour supply to be an issue in the next few years. They feel they can source workers easily enough now. What is needed, however, is to be able to consistently keep employees working to avoid the challenge of these individuals having to find occupational alternatives in other regions or sectors. For those unions that provided data on retirement flows, the rate of retirement over the past five years has been greater than what business managers are expecting over the next five years (down by about 20%). In the previous five years, for every retired worker, unions took on an average of 3.9 new members. Over the next five years unions are projecting an intake of 4.7 new members for every retired worker. Some business managers noted that, within the context of competing occupations, it was difficult to source qualified and competent workers who are interested in heavy construction xviii Nova Scotia 2015 Labour Market Assessment

20 work. Others commented on the current fiscal situation in Nova Scotia, highlighting a high level of provincial debt, high taxes and, notwithstanding the activity within the Halifax area, a lack of wide-spread construction activity. Business managers believe that the consideration that most affects hiring is the volume of work readily available and the ability of workers to perform this work at an acceptable level of compensation. Notwithstanding the challenges, the business managers point to some clear opportunities in ICI with the number of major projects that are on the horizon and, as noted in recent Atlantic Provinces Economic Council (APEC) reports, the expected steady level of annual major project spending over the near term. KEY FINDINGS The main study findings include the following: Factors Affecting Apprenticeship: The analysis of factors affecting apprenticeship provides a high-level outline of just how dynamic apprenticeship has become within Atlantic Canada and Nova Scotia in particular over the past several years. This illustrates how the Canadian system is organized across governments, including the provincial level. Interestingly, other avenues of research undertaken during this study, including consultations with employment service providers, highlight the fact that not all trade-related students are fully aware of the apprenticeship stream. Some students thought that enrolment in a trade-related program bestows apprentice status; others were of the view that completion of trade-related training means that one automatically becomes a journeyperson. More recently, the Council of Atlantic Premiers signed an Atlantic Memorandum of Understanding Concerning Apprenticeship Mobility 7 to make it easier for apprentices to get on 7 xix Nova Scotia 2015 Labour Market Assessment

21 the job training throughout the region. This will address what the premiers see as a challenge for businesses in Atlantic Canada which report having difficulty finding the skilled labour they require, while, at the same time, providing a means to address the interprovincial barriers impacting the mobility of Atlantic Canadian workers who need the experience to complete their certification. A Protocol signed on July 16 th 2015 will enable mutual recognition of technical training, work experience, and examination results for apprentices moving between provinces and territories in Canada. Buyer Perspective: Private buyers indicate that the project decisionmaking process is governed, first and foremost, by market circumstances and the specific business case surrounding a given investment in ICI-related spending. Availability of labour, the level of activity within the construction sector at the time, and the availability of materials are either not considered or are considered minimally. Government buyers offered a similar perspective, although the business case decision-making criteria are framed in the public policy language. Buyers are very focused on the track records of the bidding supervisors, managers and the schedulers. The skills and experiences of individuals assigned to these roles can be the determining factors at award, but again, this may have little or no bearing on an assessment of the sector s level of activity with respect to labour supply / demand considerations or industry capacity. Purchasers are more likely to be aware of the skills demands and limitations of schedulers, managers, supervisors, and designers. Purchasers award decisions are also more likely to be influenced by the availability of key roles within the sector and, for the most part, these roles are not related to those on the tools. Availability of skills in these areas (schedulers, managers, supervisors, and designers), have been highlighted by some buyers as being an issue for them, at least on occasion, and more likely to be a factor on more complex projects. Worker Mobility: Workforce mobility has been a constant in Nova Scotia s ICI sector and, as one worker noted, the industry here could do more to facilitate worker mobility so that workers can maintain their incomes and households, but also maintain their attachment to this area. So, rather than create movers (who relocate on a longer-term or permanent basis), the industry should facilitate commuters following work elsewhere and, as demand dictates, also being available for work here. In the context of the national ICI sector, the above suggestions do make sense. The NS ICI labour force is relatively small compared to Canada-wide ICI spending and, in particular, is also small relative to markets in Alberta, Ontario, and British Columbia. Supporting the mobility of NS-based workers would have the advantage of keeping workers in the sector at a decent income, while maintaining their connection to, and potential availability within, the Nova Scotia region when demand dictates. Reasons to move among current workers were varied and included personal reasons (27%) and a better quality of life (21%). Among students, migration is motived by higher wages (26%), a mindset that there are limited opportunities close to home (19%), and that migrating yields more stability / a greater volume of work (16%). Interestingly, employer views of workers motivations to move aligns more with the reasons students xx Nova Scotia 2015 Labour Market Assessment

22 mentioned than the array of reasons mentioned by workers. Retirement: A recent APEC Report Card - The Aging Workforce in Atlantic Canada - notes that the relatively large cohort of baby boomers across Atlantic Canada will continue to impact the age distribution of labour market data for the next years and the report predicts that employers will be challenged in meeting the their labour market demands. Notwithstanding, the report concludes that there will be an inevitable limit on workers extended stays in the labour market and this can be expected to manifest itself over the next few years. In this current study, 76% of the workers completing the survey identify their expected retirement date as more than 10 years and only 12% plan to retire within 5 to 10 years. The 2007 study suggested retirement was closer for more workers. When asked about retirement in 2007, only 46% said their retirement was more than 10 years away and, at the time, 26% planned to retire within the coming 5 to 10 years. Worker comments around their retirement plans in both 2007 and in this current study reflect uncertainty over their planned retirement date and impacts of financial realities, age, health, and other factors impacting retirement decisions. Hiring Practices: Among interview findings, which included business managers, employment service providers, and some employers, the need to improve job matching was a prominent theme. Some suggested the need for a stronger focus on the use of career aptitude tests to help refine career choice and to also better manage training investment decisions. In this context, several interview participants remarked that approaches and initiatives which expose individuals to trades training were helpful in individual career decision making. Among those mentioned was CANS Building Futures for Youth, the NSCSC s Trades Exhibition Hall, and NS Department of Education s Skilled Trades 10 and Construction Trades 11. Employment Expectations: The average ICI worker actually worked 63% of the past 24 months prior to taking the survey in ICI. The rest of the time was spent working in other sectors or being unemployed. At the time of the survey, and among all trades people, 74% were employed in their main trade, 4% were employed, but not in their main trade, 5% were employed in another sector, 16% were unemployed and 2% were retired. It seems ICI students understand this characteristic of the sector. To illustrate, only about 34% of ICI-related students expect to work 2,000 or more hours per year; the remainder expect to be working less than a full year. As well, the majority of students (72%) expect to secure employment within a two-month period of completing their studies. Orientation, Career Demonstrations, and Industry Participation Opportunities: As noted above, this study highlights both the NSCSC Trades Exhibition Hall and Building Futures for Youth as important initiatives, each providing excellent marketing tools to proactively address labour supply issues. These facilitate partnerships with the Nova Scotia Department of Education, NSAA, NSCC, and school boards throughout the province. Input from Selected Employment Service Organizations: The study took place at a time when the Department of xxi Nova Scotia 2015 Labour Market Assessment

23 LAE is examining how best to modify its province-wide career and employment services delivery structure in order to respond to a changing labour market. Transitioning to a new, more integrated model of career services has, in part, been enabled by the opportunity presented by the devolution of federally-supported career and employment support services to the province. At the same time that the devolution of federal services to the province was taking place, the Department was being called upon to address a range of other emerging challenges perceived skill shortages, the need to better align labour supply and demand, and the need to ensure training is more relevant to labour market requirements and challenges within the apprenticeship system. While this service transformation initiative is a work in progress at the time of the writing of this report, it would appear that a primary focus of this effort is aimed at providing a more integrated service delivery system. It will be important for the NSCSC and industry partners to monitor these developments on behalf of the sector and to offer advice and guidance where relevant. Labour Supply Gap: Typically, employers will tend to highlight challenges in sourcing labour, especially with respect to specific occupations. Concerns include the experience and skill levels of new entrants, as well as the availability of more experienced workers for whom employers must compete with other employment opportunities, including those in other jurisdictions. Business managers highlight the international connectedness of their network and their resources that enable them to draw workers to this region as demand dictates. However, business managers also have good data on available workers, skill levels and employment levels, and point to unemployment (19% based on the Business Manager Survey) as evidence that there is no shortage of workers. In this study, workers themselves report, on average, that approximately 10% of their time over the previous 24 months was spent unemployed and that, on average, only about 63% of their working time was spent in ICI construction. The clear message from employers is that access to labour (in Halifax) is an issue. Regardless, with 34% of the workers surveyed in this study reporting having worked less than they desired during the past 24 months, and the union data reflecting a 19% rate of unemployment, province-wide, it is difficult to support an across-the-board assertion of a labour supply shortage. A look at trends in construction spending demonstrates how labour supply may not, in general, be an issue. Nonetheless, there are periods (and perhaps geographic regions within the province) where both labour shortage and / or decreasing numbers of more skilled tradespeople can become an issue at localized levels. xxii Nova Scotia 2015 Labour Market Assessment

24 to be in the vicinity of 12.5 million hours of employment. THE STATE OF ICI LABOUR SUPPLY AND DEMAND There are no secondary data sources that measure either the labour force or employment estimates for the ICI sector in isolation of other construction sectors, at either the national or provincial level. From the survey and interview research, the combined labour force in both the union and open shops is in the vicinity of 14,452, and employment is estimated at 11,706, comprised of 9,950 trades-related occupations and 1,756 management and administrative positions. Survey Findings Estimated Labour Force (all roles) 14,452 Estimated ICI Employment (all roles) 11,706 Management roles 1,756* Trades-related roles 9,950 Full-time trades positions in ICI 6,269 * Management roles includes: Managers, Estimators, Sales/Business Development, Supervisors/Foremen, Project Managers, Design/Planning, Engineering, and Administration. Overall, 63% of tradespeople work time was spent in ICI. Based on this, and in consideration of the trades worker employment estimates derived from the study, total hours for the trades-related workforce in 2014 is estimated There are some important caveats to the analysis conducted above. In reviewing all source data, as well as the commentary made during the surveys and interviews conducted as part of this study, it is difficult to delineate ICI employment along the lines of open shop and unionized employment situations. For example, it is reasonable to expect that there are workers who are not affiliated with Merit or unionized labour anecdotally estimated at as many as 500 to 1,000 workers. A recurring theme throughout this study and one of the key recommendations noted in Section 6 is that more research needs to be done to better pinpoint the labour force supply and demand at the occupational level and that LMI relating to this sector needs to be collected and examined more frequently. Regardless, 34% of the workers surveyed in this study reported having worked less than they desired during the past 24 months, and unionsupplied data reflects a province-wide 19% unemployment rate. Under these circumstances, it is difficult to support an across-the-board assertion of a labour supply shortage. Nevertheless, while some employers are seeking more work, some employers continue to report having more work to do than they have workers. It is within this context that business managers report high unemployment and a frustration at what they perceive as a lack of construction activity in a province with considerable aging infrastructure and new infrastructure needs. Among union membership, we estimate at least 10% of current members hold travel cards or are otherwise working outside of Nova Scotia: this capacity, if attracted back to Nova Scotia, means another 1,000 or so workers. This would not include members who have relocated. xxiii Nova Scotia 2015 Labour Market Assessment

25 In terms of new entrants, business managers have highlighted challenges in retention of both current workers, but especially new members who become frustrated with their first cycle of layoff following work. Many trades-related students themselves have also said it is their expectation that they will not achieve 2,000 of hours of employment, and a large share (46%) says it is their intention to leave Nova Scotia to find work. In terms of work flows (retirement and new entrants), BuildForce Canada forecast data provided to the NSCSC reflects a fairly steady level of ICI employment over the next several years, adding slightly more than 1,000 jobs from 2014 to If the NSCC creates an average of 1,100 new graduates each year, then the potential for new entrants within Nova Scotia is in the vicinity of just under 600 new workers per year, given the Student Survey suggests the balance intend to relocate. Employers reported hiring at a rate of 4.7 employees per year over the previous 5 years. In the next five years, the typical firm expects to see a retirement rate of 4 people per year. Without being occupation specific, this is more than enough supply to address the retirement identified in the survey, especially in the context of an oversupplied labour market. Using the Worker Survey to identify occupations at risk of worker shortages is more challenging than simply estimating the number of workers. A shortage of available skills may exist, even if workers are available. Added to this is the dynamic that a single large-scale ICI project can dramatically change the dynamics of labour supply in an Atlantic Canadian context: a condition that no doubt, at least in part, motivated recent interprovincial agreements on mobility. APEC s 2014 study of labour requirements for major projects across Atlantic Canada highlighted areas where project developers report labour pressures as a growing concern. 8 Within Nova Scotia, these included engineers, project managers, and several of the higher skilled trades where the proportion of the labour force over 55 years of age is relatively high. This is consistent with findings in this study arising from outreach to employers and, particularly, buyers. Specific trades noted by APEC, in the context of an Atlantic-wide level of concern, included bricklayers, steamfitters and pipefitters, painters, millwrights, and heavy equipment operators. Employers participating in this study also identified project schedulers as potential areas of occupational concern, in terms of both the number of those involved in this role as well as skill levels, particularly for more complicated construction projects. APEC also notes the challenges of developing a predictive model for retirement based on offthe-shelf data. Indeed, unique personal circumstances (health, wealth, personal responsibilities, among other factors) also strongly influence a person s individual retirement or career change decisions. APEC s 2013 investigation into skills shortages in Atlantic Canada notes the complexities in identifying, within available data, where skills mismatches may be manifested. 9 APEC notes that the main challenges to current methodologies relate to the relatively small sample size constituted by Atlantic Canada 8 APEC, The Labour Requirements for Major Projects in Atlantic Canada report, March APEC, Is There a Skills Shortage in Atlantic Canada? article, Atlantic Currents, Summer 2013 xxiv Nova Scotia 2015 Labour Market Assessment

26 within the Labour Force Survey. As noted in this report s recommendations section, there is a role for the industry stakeholders assembled to steward this study to continue to work together to better improve the sharing of information that is collected and to work toward a system of data labour market information management that allows for more dynamic and frequent analysis. managers, supervisors, and designers has been highlighted by some buyers as being a constraint for them from time to time. In more complex assignments, this is more likely to be a factor and more likely to be characterised as a skills issue then an availability of workers issue. This is consistent with the findings of the 2007 LMA study. Retirement is 10 or more years away for the majority of workers surveyed (76%). However, by looking at the retirement intentions as indicated in the Worker survey, together with ICI employment estimates derived from BuildForce Canada data, a number of occupations were identified as potentially at risk due to the impact of retirement. The following occupations, wherein 15% or more of the labour force say they plan to retire within the next 5 years, include: Linemen; Cement Finishers; Sheet Metal Workers; Boilermakers; Gas Fitters; and Labourers We estimate the total retirement from these occupations will be in the vicinity of 470 workers combined; about 5% of our total tradespecific employment estimate of 9,950 ICI workers. This should not be considered a comprehensive list; it does not mean that other occupations will not be impacted by retirement as more worker survey responses would be needed across a broader spectrum of occupations for a more exhaustive analysis of how other occupations may be impacted by retirement. Interestingly, buyers have also highlighted areas where they are more likely to encounter challenges from a staffing perspective. Availability of skilled schedulers, project xxv Nova Scotia 2015 Labour Market Assessment

27 STRATEGIC RECOMMENDATIONS Recommendations arising from this study are organized into two key areas strategic factors and specific recommendations arising from the findings of the study. The complications of the economic and policy issues as outlined in the context review in Section 1 of this report underscores the complexity of the labour market for the construction sector. The data analysis in Section 6 highlights the cyclical nature of subsectors within and the growing importance of the Halifax market relative to other parts of the province in respect to commercial construction activity. There is no indication that this environment is likely to become any less complex and dynamic. In light of this, the NSCSC and their partners may wish to consider collecting LMI on a more frequent basis using this study as a baseline that could be periodically updated as a monthly/quarterly / seasonal report on local LMI issues, challenges and opportunities. This might be undertaken on a cost-recovery basis with users subscribing to the service. Proceeding in this manner would provide the industry stakeholders with more detailed information, closer to real-time cycles and would position organizations to more effectively support advocacy with public sector partners; As the context section of this report notes, there are a significant number of new policy initiatives working their way through the system. These include the follow up to the Now or Never Report, the transformation of career service delivery in Nova Scotia, continuing changes in fiscal arrangements between the federal government and the provinces in the delivery of labour marketing programs and services and new approaches to managing LMI. In view of the context and challenges of this agenda, it is recommended that industry stakeholders continue to carefully monitor these developments and utilize the finding of this study and other activities it has underway to help inform and influence these changes beneficially for the ICI construction sector; Industry partners should continue to work to increase the industry s profile by means of dialogue with the media and government, communicating the current state of the sector and its needs. This study provides a strong platform for industry stakeholders to better educate the public, government partners and employers about the issues, challenges and opportunities the sector faces. It also provides an opportunity to better articulate and frame the position of industry. There is also the important matter of helping elected representatives better understand and engage with the sector. Access to opportunities in the trades for under-represented groups has been a challenging issue. To effectively address this issue, it is recommended that industry stakeholders collaboratively work with xxvi Nova Scotia 2015 Labour Market Assessment

28 representatives of these communities to research and identify options for improved training opportunities for apprentices designed to address demographic under-representation. There is also the possibility to utilize innovative and proven procurement strategies as a means to encourage positive outcomes for apprentices and those which fall within underrepresented groups. A notable finding of this study is that access to trades training and making the transition from school into the trades needs to be improved. An important dimension of this is ensuring that potential trainees better understand the trades. This issue of transition from school to work is highly topical at the moment, having been profiled in the report arising from the comprehensive review of Nova Scotia s P-12 education system in and, subsequently, in Nova Scotia's Action Plan for Education (2015) 11 responding to the findings of that review. Building on the excellent work already underway in this area and the leadership of initiatives like CANS Building Futures for Youth and the NSCSC s Trades Exhibition Hall, it is recommended that industry stakeholders, including union, open shop, and associations/councils continue to develop and augment programming, including the introduction of pilot programs, designed to better screen and orient newcomers to the trades and the requirements of their chosen occupation. that training decisions influenced by funding availability may achieve better outcomes with better screening processes. These processes should include a plan for providing pre-training for potential participants to address academic and skills gaps identified during screening. Industry stakeholders are an important resource in providing collaborative leadership in this area. Given the topical interest in achieving better outcomes and greater efficiency in trades-related training, it is recommended that industry partners further explore their role in improving outcomes through collaborative efforts with educators in the design of more robust and responsive screening tools and pre-training programs (a theme noted several times by a number of interview participants) to address skills gaps whether as separate initiative or in tandem with the proposed pilot program referenced above. In response to feedback from several stakeholders, federal, provincial, and local governments have a role to continue to support and work to cultivate an environment for private sector investment in business opportunities. Stakeholders generally reported good working relationship with governments, however, it is recommended that all industry stakeholders continue to engage all levels of government in enhancing their understanding and building support for business investment decisions. Consistent with the previous recommendation, there is also evidence 10 ter_panel_on_education.pdf 11 on_plan_2015_en.pdf xxvii Nova Scotia 2015 Labour Market Assessment

29 OTHER RECOMMENDATIONS Other recommendations that should be considered by industry partners include: Continue to target high schools and youth: trade school options have to be interesting and include financial and career incentives. This does not mean returning to the streaming model of secondary education; it does mean putting more options in the curriculum that expose young people to the trades and to summer job opportunities at an earlier age. The recent review of the P- 12 education system and the subsequent announcements of the Minister of Education and Early Childhood Development underscore the importance of effective school-to-work transition programming, including into the trades. Encourage targeted recruitment efforts by major contractors to promote trades training to typically under-represented groups including women, African Nova Scotians, Aboriginal people and persons with disabilities. As part of this initiative, contractors could develop programs to open opportunities to these groups and advocate for scholarship programs and / or targeted wage subsidy programs to offset initial training costs while on the job. This could also include a program to support career awareness through mentorship with individuals who can act as role models for under-represented groups. xxviii Nova Scotia 2015 Labour Market Assessment

30 Continue to support the excellent efforts within the P-12 system through Skilled Trades 10 and Construction Trades 11 to teach trades and get young people out into the field to gain exposure and experience on the job site. There is a continued role for industry to continue to take ownership of trades training that is needed in the field and industry should continue to support private training systems to provide this training to augment, as a finishing school approach, the work of NSCC - e.g., industry driven training beginning where NSCC course-based training ends so that workers have the benefit of a full continuum of training and professional development. Industry dynamics need to be carefully monitored. As one business manager noted, the average age of the membership is increasing. We have a fairly high percentage of members reaching retirement age in the next 10 years or so. Many new sign-ups drop out as soon as they are laid off. This sentiment was echoed by several managers, although the survey data suggested retirement is a long way out for many workers (10 or more years for 76% of respondents). APEC reports also support that, while longer labour force attachment has been a trend, it has a limit and this will be reached over the next 10 or so years. There may be a shortage of journeypersons to train apprentices, potentially leading to labour shortages, if this issue is not addressed, along with the identification of options to better incentivize journeypersons to train apprentices. As industry leadership moves toward retirement, increased effort must be placed on developing succession plans and business skills held by trades (e.g., through Blue or Gold Seal certification). Industry stakeholders are an important resource in developing best practices in this important area and in formulating recommendations to government and industry to educate and encourage effective and responsive succession planning. Stability in labour demand and labour supply may be more easily achieved if industry had a stable and predictable level of work. As a major purchaser of construction, governments at all levels, could support better planning by developing long term infrastructure investment plans (i.e., 10 years and beyond) similar to the shipbuilding strategy that will provide a greater level of predictability and also support better planning, including human resource planning. While it is recognized that wage gaps are a consideration, underlying factors need to be better understood. For example, most public procurement in Nova Scotia is based on a requirement for low bid. Firms which pay better wages invest in safety and provide benefits. Exclusively low bid approaches can have the unintended consequence of creating disincentives to invest in industry capacity. Within the admittedly complex world of public procurement and the need to exercise prudence in the expenditure of tax dollars, practices that are optimally responsive to industry realities and labour market dynamics can, in some cases, serve broader policy objectives such as training and employment outcomes and, in some cases, can also level the playing field and create broader economic benefits. xxix Nova Scotia 2015 Labour Market Assessment

31 Business climate issues, considered across the spectrum from taxation to regulation, are important. The Now or Never Report underscores that effectively increasing development in Nova Scotia requires aggressive measures. Industry stakeholders can be an important resource and ally for government in making Nova Scotia a more attractive place to invest, ultimately leading to more employment and more opportunity. Similarly, industry can be an effective partner in helping shape, review and define training requirements. The central involvement of industry in the new apprenticeship agency is very positive. Program evaluation is an important element of ensuring strong outcomes. This is especially important for training programs. Increased collaboration between industry, training providers, and government with respect to the design of training and an accompanying focus on evaluating outcomes, will improve the situation and ensure greater accountability and value for money in terms of investments made. Models with proven success for matching individuals with trades should be inventoried and used as examples for best practices for programming. It is also recommended that trades training investment decisions be based on empirical, evidence-based labour market data that clearly identifies demand for the trades being considered for training. Better quality control of preemployment training would also improve results. Ensuring that entrants have been comprehensively assessed and that all program requirements have been met before graduation would provide more predictable and durable outcomes. Career choices are often influenced by friends and family. Targeting the influencers should be a focus of any marketing / awareness campaign developed. To address graduates that are having trouble finding jobs and employers who cannot find employees, stakeholders should find innovative ways to bring the parties together. In this regard, use of technology offers a strong avenue to enhance outcomes. Fortified with good LMI, industry partners could play a pivotal role in encouraging optimal fluidity of Nova Scotia s ICI labour force within the province itself. Most construction work is projectbased and involves an owner (who is the buyer of construction services) a general contractor, many trade contractors and often sub-contractors. If payment for work that has been satisfactorily completed is needlessly delayed as it flows from the owner to the general, to the subs and to those below, it puts undue pressure on the cash flows of many small contracting businesses. In a jurisdiction populated with small- and medium-sized enterprises (SMEs), this can have an impact on an employer s ability to hire, invest in equipment and bid multiple projects. This issue and the range of potential remedies available, up to and including Prompt Payment Legislation, should to be examined by industry partners and government. Harmonization of apprenticeship systems across the country is vital to the economy, increasing apprenticeship completion rates and improving mobility. The Atlantic Region and Nova xxx Nova Scotia 2015 Labour Market Assessment

32 Scotia have been vigorously pursuing this imperative. This work needs to continue on a nation-wide basis. Industry will be a valuable partner and can continue to play a support role in the efforts to harmonize apprenticeship programs across Canada. There are significant incentives available to apprentices and employers. Stakeholders should examine practices for incentivizing tradespeople to remain in the province through education on the benefits and incentives available and any other retention measures that will serve to support the local labour force. During the consultation phase comments were made by some stakeholders that there are impediments that limit the movement of employees between and among employers; a matter which might benefit from further research and examination. Moving forward with the results of this study, the NSCSC and industry partners could develop an abbreviated form of the survey tools developed and conduct primary research toward accumulating LMI on a more frequent basis. Among the options are to institute an annual collection of surveys from NSCC as part of a regular ICI Student Intention Survey, the results of which could be shared with industry to aid in better planning. Participants could be invited to register for subsequent research and become part of a follow-up panel whereby the NSCSC and partners could check with the participant over time to monitor aspects of their career path evolution, including mobility, changes in positions, and additional training undertaken, along with other areas of strategic inquiry. Virtually all sectors of the economy depend on the existence of construction capacity. Investment is impacted when the capacity is limited. The results of this study provide industry stakeholders with an important snapshot of the sector, identifies the adjoining issues and provides an opportunity to work with government and all industry players to revitalize the sector and to put it on a solid footing heading into a future in which there are both clear challenges and tremendous opportunities. Virtually all sectors of the economy depend on the existence of construction capacity. Investment is impacted when the capacity is limited. xxxi Nova Scotia 2015 Labour Market Assessment

33 Acronyms APEC CANS CCA CD CET CMA CSTS CTAB CWB EI ENS GATN GED H2S HUET ICI ICT ISANS IT JFA LAE LEED LMA LMI METS NDT NSAA NSC NSCC NSCLRA NSCSA NSCSC OH&S OSSA RFP SME WHMIS Atlantic Provinces Economic Council Construction Association of Nova Scotia Canadian Construction Association Compact Disc Certified Engineering Technologist Census Metropolitan Area Construction System Training Systems Canadian Technology Accreditation Board Canadian Welding Bureau Employment Insurance Employment Nova Scotia Group ATN Consulting Inc. General Educational Development Hydrogen Sulphide Safety Helicopter Underwater Escape Training Industrial-Commercial-Institutional Information and Communications Technology Immigrant Services Association of Nova Scotia Information Technology Job Fund Agreement (Canada Nova Scotia Job Fund Agreement) Labour and Advanced Education Leadership in Engineering and Environmental Design Labour Market Assessment Labour Market Information Modular Egress Training Simulator Non-Destructive Testing Nova Scotia Apprentice Agency National Safety Council Nova Scotia Community College Nova Scotia Construction Labour Relations Association Nova Scotia Construction Safety Association Nova Scotia Construction Sector Council Occupational Health and Safety Oil Sands Safety Association Request for Proposals Small- and Medium-Sized Enterprise Workplace Hazardous Materials Information System xxxii Nova Scotia 2015 Labour Market Assessment

34 1 INTRODUCTION In 2007, the NSCSC released a demographic study of Nova Scotia's ICI labour force, examining labour supply and demand. The study was a follow-up to an earlier (2001) NSCSC LMA. Notably, both of these studies followed a grassroots approach to gather up-to-date, accurate and reliable provincial Labour Market Information (LMI) on the ICI sector. The primary research focus of these studies was to supply industry with more reliable and credible information and provide planners, policy makers, and industry stakeholders with an informed alternative to off the shelf projections and summary materials that are typically more available. The information provided industry and key stakeholders with the data necessary, at a granular level, to identify current and future labour and skills supply issues, to enable organizations to effectively engage in more precise and purposeful human resource planning and development initiatives with the expectation of greater certainty in terms of success. In 2013 the NSCSC issued a Request for Proposals (RFP) for an updated assessment of the Nova Scotia ICI construction labour force. This study followed earlier models as a primary research-focused project addressing labour market statistics by trade, while also analyzing supply and demand and evaluating anticipated demographic changes. 1 Nova Scotia 2015 Labour Market Assessment

35 1.1 STUDY PURPOSE AND SCOPE The focus of this project is to generate up-to-date, accurate LMI, providing ICI industry stakeholders with a solid foundation from which to plan and address human resource and business needs, and effectively represent and influence industry requirements and outcomes going forward. At the strategic level, the primary objective of the study is to enable industry stakeholders to make informed decisions, supported by evidence, to address current and anticipated labour market changes and to more accurately assess and design succession strategies. This is accomplished through the collection and examination of data on current and anticipated labour force and human resource requirements of the ICI construction sector in Nova Scotia, including: preparation of a demographic profile of the labour force and its implications for the sector now and into the future; assessment and analysis of inter- and intra-provincial 12 mobility structures, how these are working and preparation of an analysis of their effectiveness and identification of any change requirements; identification of specific issues impacting hiring and how these might be addressed and improved; and identification of gaps in supply and demand and of accompanying regional trends expected to impact the labour force A secondary objective is to enable employers to better understand available programs and to access necessary information in support of talent recruitment and activities relating to labour market hiring and training. To complement the LMI, the project also focuses on gathering perspectives and statistics from organizations to identify successful outcomes and critical success factors in driving positive outcomes from which others can learn. 1.2 CONTEXT Nova Scotia's economic stability is tied to the province s ability to compete and respond to changes in the labour market locally, nationally and globally. That ability requires a vibrant and adaptable workforce strong in both numbers and in skills. The NSCSC has these objectives at the heart of its mandate. Completion of this study is a timely undertaking. The importance of skilled trades and the perceived challenges associated with labour supply in the construction sector going forward is a highly topical issue in public discourse. There is a growing understanding and acceptance of the challenges that give rise to concerns respecting labour supply in the future the Now or Never Report 13 has served to profile the province s 12 Intra-provincial mobility means moving within one s own province. 13 Now or Never: An Urgent Call to Action For Nova Scotians, a Report of the Nova Scotia Commission on Building Our New Economy, February 2014, available at 2 Nova Scotia 2015 Labour Market Assessment

36 unfavourable demography so that its implications are more broadly understood. Moreover, these concerns and challenges are not unique to Nova Scotia, rather, these are issues among all Western economies sharing many of the same features, including: aging populations; high levels of youth unemployment; economic challenges resulting in significant labour market dislocations; the impact of technology and globalization; the continuing challenge of a sustained low-interest environment, coupled with high levels of public debt; and a trend toward extending one s labour market attachment or participation in the workforce beyond the tenure of previous generations These are all drivers with respect to this study on the ICI labour force, factors that have been carefully considered. Arguably, the stakes for the ICI construction sector are higher this time around than they were in previous studies. It is useful to consider these differences because they have implications, both for this study and how these studies might best be approached in the future. Principal among these differences is the changing circumstances impacting the labour market and associated evolving policy considerations. In this section of the report we consider the prominent contextual factors that are impacting the contemporary labour market and which, ultimately, have implications for the ICI construction sector. In the run-up to the commissioning of this study, demographic challenges and their resulting impact on increased competition for talent nationally and internationally, as well as the importance of labour supply to the execution of planned largescale Atlantic projects, including the decades-long shipbuilding program, were prominent considerations. Nowhere have our future challenges been more extensively examined than in the Now or Never Report. Its main message is, perhaps, best expressed in the adjoining excerpt from the report. The economic and population challenges we now face in Nova Scotia, and dramatically so in our rural regions, demand new vision, innovative approaches, greater collaboration and a greater willingness to take on the risks associated with economic change and progress. The Nova Scotia Commission on Building the New Economy Now or Never: An Urgent Call to Action for Nova Scotians The labour force of the future must be able to face inevitable future challenges (age, outmigration, among others) and this must be the basis for change in career services and in how LMI is collected and maintained. 3 Nova Scotia 2015 Labour Market Assessment

37 Throughout, the Now or Never Report underscores the importance of skills development and innovation as important bookends to future economic stability and growth. In the announcement accompanying the tabling of the Commission s report, Chairman Ray Ivany noted that because of a combination of economic and demographic factors, we are teetering on the brink of long-term decline. With respect to the problems identified, labour market considerations figure prominently in the Commission s analysis and solution-finding. While not specifically targeting the construction sector, Ivany s observations with respect to the province s unfavourable demography are, nonetheless, relevant to this study. The Now or Never Report notes that Nova Scotia s population is expected to decline over the next 20 years as young people continue to leave the province to search for work. The report notes that by 2036, the province expects to have 100,000 fewer working-age people than it did in 2010.This constitutes an urgent agenda to make sure that the labour force of the future is up to the challenges this future will inevitably present and, ultimately, must be the basis of the case for change in career services being contemplated. This is an important consideration for the construction sector and a metric that needs to be monitored, particularly important for the construction sector where the average age of workers is 39 years (consistent with findings from the 2007 Labour Market Study). Ivany isn t alone in his focus on demographic challenges; this continues to be a preoccupation of policy makers virtually everywhere. In a recently released report From Not Enough Jobs to Not Enough Workers the Conference Board of Canada concludes that serious labour shortages in the world s advanced economies will create unprecedented challenges for business leaders and policy makers over the next 15 years and beyond. Because of its status as one of the oldest provinces, the demographic challenge is an issue that is of considerable significance for Nova Scotia, now and into the future. In addition, the continuing impact of the slow-growth environment arising from the global financial challenges of the past five years and its aftermath of stubbornly high unemployment in many countries, including parts of Canada, adds a further dimension of complexity to the situation. Beyond the demographic challenges, there has been real momentum achieved in addressing adjoining issues. The development of a special operating agency, the NSAA, is a step forward in enhancing apprenticeship and, in its governance structure, will include strong industry engagement and participation. The Atlantic Workforce Partnership is working to harmonize the regulatory structures associated with apprenticeship across the Atlantic Provinces. In addition, the recently-tabled review of the education system noted the importance of improved career guidance and more effective school-towork transition programming, including for those involved in the trades. At the same time, there are several collaborative efforts and initiatives designed to provide a highly experiential immersion in, and exposure to, trades for those students considering a transition into trades training. Based on a review of the literature and underlying trends at the national and provincial level over the past 5-10 years, we also know that the jobs of the future will most often require a new skill set and will favour those who attain post-secondary education, including trades and technical training, and who are highly skilled. We know that there is a strong demand for tradespeople and we know the demography within the sector continues to be a concern. There are reports of jobs currently going unfilled because there are not enough people with the skills and experience to fill these jobs, a factor that creates ongoing challenges for employers. 4 Nova Scotia 2015 Labour Market Assessment

38 One dimension of addressing the challenges associated with chronic labour shortages is consideration of how best to animate and optimize sources of under-utilized and under-represented labour in the economy, including persons with disabilities, Aboriginal and African Nova Scotians, women and youth, an area in which success has been elusive. Furthermore, the data reveals that Nova Scotia has one of the lowest levels of labour market participation in Canada. This means that there are more people who are not in the workforce who, with appropriate training and intervention, could help mitigate the imbalance that exists in labour supply and demand and which some expect to widen in the future. Initiatives like the START Program and the Canada-Nova Scotia Job Grant, designed to better match training and labour market investment efforts with labour market demands, should assist in addressing these challenges. Indeed, throughout the consultation phase of this study, several interview participants reiterated the need to ensure that labour supply investment decisions are informed with current LMI and labour market demand considerations, thus ensuring greater balance in respect to both fiscal and labour market considerations. The continued impact of globalization and the ubiquity and often disruptive impact of rapidly evolving technologies are factors that will continue to challenge Nova Scotia workers and their families, and to which we need to adapt. Over the past several years, Nova Scotians have witnessed economic challenges in forestry, in manufacturing and in our traditional industries that serve to clearly and compellingly illustrate these issues. At the same time, there are exciting new emerging opportunities, like the Irving Shipbuilding contract and other major projects around which we need to mobilize and ensure that Nova Scotia s workforce can effectively meet these future requirements. Provincially, the Department of LAE is moving toward a new approach to providing career services in Nova Scotia. Nationally, the federal government is implementing policy changes which are also having an impact on labour market programming. These include changes to the Employment Insurance (EI) Program, the Temporary Foreign Worker Program, and immigration. The data reveals that Nova Scotia has one of the lowest levels of labour market participation in Canada. Importantly, this approach to focus immigration on securing the skills that the labour market demands signals a trend that is emerging as a prominent feature of contemporary labour market programs in a number of jurisdictions; that is, targeting and incentivizing labour market aspirants to follow key occupational areas for which there is demonstrable labour market demand; in short, forging a stronger link between labour supply and demand. 5 Nova Scotia 2015 Labour Market Assessment

39 Originally announced in the fiscal year federal budget and implemented in 2013, changes to the EI program are extensive. Highlights include the introduction of new regulations that further define several factors such as type of work, wages, commuting time, working conditions, hours of work, and personal circumstances, when defining suitable employment. The new rules also place EI claimants in one of three categories long tenured workers, frequent claimants, and occasional claimants with accompanying different benefit regimes. The period during which this study has been undertaken also included federal changes to the manner in which immigrants are recruited. One of the key features of the changes to immigration is forging the link between labour supply and demand; in short, immigration is strongly linked to qualifying new entrants who have the skills and capabilities in demand within Canada. Importantly, this latter approach signals a trend that is emerging as a prominent feature of contemporary labour market programs in a number of jurisdictions - that is, targeting and incentivizing labour market aspirants to follow key occupational areas for which there is demonstrable labour market demand. This imperative to create a stronger alignment between labour demand and supply is also leading to innovations in training, including just-in-time training to respond to immediate occupational training needs, as well as the refinement of on-the-job training and apprenticeship programs. Beyond these significant changes, federal-provincial fiscal arrangements related to labour market programming are also undergoing changes. During the study period, changes to the fiscal arrangements between the provinces and the federal government for labour market programming have been introduced. This latter development, hallmarked by the introduction of the Canada-Nova Scotia JFA, marks a milestone wherein direct employer involvement and investment, up to and including participating in funding for job training, is gaining new prominence. Under the new Canada-Nova Scotia JFA, there is an increased emphasis on employer engagement and involvement in the development and delivery of employment services, to ensure that people are trained for existing jobs. Employers will play a more central role in skills training. Under the previous Canada- Nova Scotia Labour Market Agreement employers weren't obligated to invest in training. Under the new JFA they are required to contribute financially, or in-kind, to the training of some workers. Perhaps the most noteworthy development is the significant decline in the price of oil and its follow along impact on employment. Many Atlantic Canadians and Nova Scotians have been working in Western Canada; job mobility has been a factor and one which has been a reality for many Nova Scotian workers. This includes workers in the construction sector. While the developments associated with the decline in the price of oil continue to work their way through the system and the economy, there is, nonetheless, ample evidence that there is, and will continue to be, an impact on jobs. Projects are being scaled back, investments are being delayed and new project development is being more carefully considered all of which impacts job opportunities. With more Nova Scotians not able to pursue high-paying jobs in the west, there will potentially be increased competition for jobs on major projects within Nova Scotia. This significant shift also underscores the complexities associated with workforce planning and the need for continuous realtime information so that adjustments can be appropriately made to accommodate emerging issues and trends. 6 Nova Scotia 2015 Labour Market Assessment

40 Beyond the impact on jobs, such developments are also having a significant impact on the fiscal situation of several provinces and the federal government, a factor that is going to further constrain an already challenged fiscal environment within the public sector and potentially impact the availability of funds, including funding for labour market programming. Generally, this development was not foreseen and serves to underscore the sensitivity of the data, in a study such as the one at hand, to both macro and micro economic factors. These policy considerations, trends, and the accompanying dynamic agenda show no sign of slowing down. 1.3 DELIVERABLES Key deliverables associated with this project include the following: an overview of "best / current practice" research arising from a comprehensive benchmarking exercise; preparation of a comprehensive range of interview templates and survey designed for multiple audiences; development and execution of a comprehensive outreach and consultation strategy targeting industry representatives and stakeholders for interviews; undertaking industry and stakeholder interviews and surveys using a "grassroots" approach (including job site visits, face-to-face meetings, etc.); assembling qualitative and quantitative research (including current and future labour force requirements) demographic data; assessing and analyzing inter- and intra-provincial mobility structures for the ICI construction industry; identifying the key issues impacting hiring within the industry; assessing gaps in labour market supply and demand along with national and regional trends impacting the Nova Scotia construction labour force, including perceptions of supply and demand imbalances; gathering perspectives and statistics from stakeholders organizations to identify successes (outcomes) of the various programs and interventions that are taking place and the identification of possible opportunities for the NSCSC to support these organizations and their objectives (i.e., attachment to the industry, completion of apprenticeship, employment, etc.); interviews and gathering feedback from leaders of various programs and activities in areas of labour force development; and compilation of a comprehensive report of findings and recommendations needed by the industry for broad-based human resource planning Under the Canada- Nova Scotia Jobs Fund Agreement, there is an increased emphasis on employer engagement and involvement in the development and delivery of employment services, to ensure that people are trained for existing jobs. 7 Nova Scotia 2015 Labour Market Assessment

41 1.4 METHODOLOGY In completing this assignment, the GATN team undertook the key activities noted above as deliverables. These were formulated in a comprehensive work plan approved by the NSCSC and the Steering Committee to direct the project. This study was highly interactive with the NSCSC and this multistakeholder team, with numerous meetings held with the committee throughout the completion of this study. Throughout the process, the consultant team had to be continuously responsive to the manner in which the work was unfolding and was required to make numerous accommodating adjustments along the way. For example, in order to improve the response rate for online surveys, the consultant team, in concert with the proponent, undertook a promotional initiative including outreach to media, an active social media campaign, and conducting an editorial board review with the Chronicle Herald. Particularly noteworthy are the results of the consultation process. The consultation process was broadbased and inclusive of key stakeholders. Outreach and consultation parties included: Workers (union and non-union); Employers Business Managers; LAE; Nova Scotia Department of Education and Early Childhood Development; Aboriginal Communities; CANS; Mainland Nova Scotia Building and Construction Trades Council; Cape Breton Island Building and Construction Trades Council; NSCLRA; NSAA; Merit Nova Scotia; and other industry stakeholders The benchmarking exercise shows the NSCSC to be in the vanguard of organizations across the country proactively managing complex issues related to labour supply and workforce planning. The NSCSC is to be commended for its long-term leadership in this area, a factor that is of value to employers, workers, industry associations and government partners. The following figure provides an overview of the work undertaken in completing this study. 8 Nova Scotia 2015 Labour Market Assessment

42 Figure 1.1: Project Work Plan 1.5 SURVEY COMPLETIONS The data from this research is rich and will continue to be relevant and valuable over the next few years. Survey Name/ Survey Group Number of Estimated Confidence Level (95%) Responses 14 Employer Survey 111 +/- 8.54% Business Manager Survey 17 +/- 5.76% Student Survey (NSCC + Other Students) 502 +/- 3.99% Worker Survey 783 +/- 3.40% Total Participants (Survey Hits) 1, Survey responses are presented in section 2, 3, 4, and 5. Where frequencies (percentages) are indicated, they pertain to the number of individuals responding to a particular question and not the entire survey sample. 9 Nova Scotia 2015 Labour Market Assessment

43 A total of 1,413 individual workers, students, employers, and business managers completed surveys, providing a very robust sample for analysis. Depending on the particular survey and the estimates of the total number of possible survey participants in each group, there is an error margin ranging from between +/- 3.40% to +/- 8.54%. Within these parameters, it is also important to note that while the A total of 1,413 individual workers, students, employers, and business managers completed surveys, providing a very robust sample for analysis. employer group has a higher margin of error, those employers that did provide responses employ over 2,426 workers in construction trades, administration, and management positions. The results highlighted in this report concentrate on key metrics associated with the core mandate of the study and are representative of the level of analysis that is possible through the survey research and consultation undertaken within this study scope. The survey and interview research and the information assessed provide some key analysis points which were previously pinpointed as being of potential interest. The report itself is not an exhaustive summary of all information collected. Four accompanying Survey Summary Reports and supporting files have been provided to the NSCSC for further reference. 1.6 REPORT OUTLINE This report outlines the study findings and offers key recommendations to support more effective workforce planning efforts within the ICI construction sector. It also addresses future considerations in advancing this work further. The balance of this report is organized into the following sections: Section 2 presents a summary of the Student Survey; Section 3 provides a summary of the Worker Survey; Section 4 provides a summary of the Employer Survey; Section 5 provides a summary of the Business Manager Survey; Section 6 synthesises the main findings and focuses on the key RFP objectives in terms of what this study was to address; and Section 7 provides a summary and recommendations The Annex Section includes a list of participating organizations and an overview of macro-level industry data compiled from secondary sources. 10 Nova Scotia 2015 Labour Market Assessment

44 2 STUDENT SURVEY SUMMARY The purpose of the Student Survey was to invite current students enrolled at NSCC and other training providers in ICI-related programs, including 30 Red Seal pre-apprenticeship programs and 10 Canadian Technology Accreditation Board (CTAB) accredited engineering technician technology programs, from across Nova Scotia to highlight their perspectives on future careers in trades and, particularly, in the ICI sector. The survey was made available through a web link that was ed by the NSCC directly to all students in relevant program areas. The programs that were included in the survey were selected because of their relation to the building systems work involved in all aspects of construction from the planning phases of ICI, onward. It should be noted, however, that some program graduates may become employed by companies that provide services outside of direct ICI-related work. A second Student Survey was made available to students registered in private training institutions and a web link was provided to these institutions for circulation to their students. The eight responses generated through this process are combined with the findings presented in this section. Participation was incentive-based, with those who provided responses to the survey given the opportunity to enter their name in a random draw for one of several prizes donated by study sponsors. 11 Nova Scotia 2015 Labour Market Assessment

45 Over the course of the study, the survey generated 502 responses (497 from NSCC and 8 student surveys generated through other survey channels), providing sufficient data on a range of characteristics to enable statistically reliable analysis of the sample population. 15 The following provides a summary of the Student Survey findings. 2.1 PROGRAM AREA & CAMPUS Figure 2.2: NSCC Campus Represented below illustrates the breakdown of student participation based on campus enrollment. The majority of the NSCC students who participated in the survey were enrolled at the Waterfront Campus (34%), followed by 8% shares, respectively from the Marconi Campus, the Pictou Campus and the Lunenburg Campus. The Akerley Campus students account for 7% of the survey sample, as do the Strait Area Campus, Annapolis Valley Campus, and Kingstec Campus. The Institute of Technology Campus represents 4% of the sample and 3% is represented respectively by the Burridge Campus and the Cumberland Campus. The Shelburne Campus accounts for 2% of the sample (2% selected other). Survey Participation by NSCC, n=479 Waterfront Campus Strait Area Campus Shelburne Campus Pictou Campus Marconi Campus Lunenburg Campus Kingstec Campus Institute of Technology Campus Cumberland Campus Burridge Campus Annapolis Valley Campus Akerley Campus Other 7% 2% 8% 8% 8% 7% 4% 3% 3% 7% 7% 2% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Figure 2.2: NSCC Campus Represented 15 Except for program questions specific to the NSCC, all student surveys (the eight additional student surveys through non-nscc channels combined with the NSCC) are summarized in this section. 12 Nova Scotia 2015 Labour Market Assessment

46 Those that indicated other reported they are enrolled at the Aviation Institute, the Centre of Geographic Sciences (COGS) in Lawrencetown and the NSCC programs at Wagmatcook. The survey was made available through NSCC to students in pre-apprenticeship trades-related program areas. Respondents were more likely to be in their first year (61%) rather than their second year (36%). Some students provided additional information for example, that they are part-time students or that their program duration is one year. In terms of areas of trade-related study, the largest single category selected was other, wherein 14% of the respondents described their program area in their own words (see Figure B.19: Program Area of Study, Student Survey). Many of these students indicated various technology-related program areas, including geomatics, automotive-related trades and mechanical trades. Among the remainder of the pre-defined program areas, the Carpentry Diploma was selected the next most frequently (11%), followed by the Electrical Construction and Industrial Certificate (7%), Architectural Engineering Technician (6%), Electronic Engineering Technician(5%), Construction Management Technology, (5%), and Civil Engineering Technology (5%) programs. On average, any one of the 42 program options represents 2% of the sample, suggesting that a significant distribution of trade areas are represented in the survey responses. Two trade areas Bricklaying Masonry and Heavy Equipment Operator were not selected by any of the respondents. 2.2 EXPERIENCE, EDUCATION, AND CERTIFICATIONS The majority of respondents (91%) indicated that, prior to enrolling in their current programs, they did not complete any other trades programs or certifications. Of the 9% who did, the institutions that were attended included, among others, the National Safety Council (NSC), Canadian Forces bases and the Centre for Arts and Technology. Programs included business administration, cooking and sciences programming. The majority of students surveyed (91%) had not completed any other trades programs or certifications prior to enrolling in their current programs at NSCC. A similar proportion (9%) of the students sampled indicated that they are also currently working towards more than one certification. Certificate categories noted here include Certified Engineering Technologist (CET), Canadian Welding Bureau (CWB) Certification, firefighting certification and Leadership in Energy and Environmental Design (LEED) Certification. When asked about intentions to become Red Seal certified, 48% of the respondents indicated they planned to become Red Seal Certified, 17% said they did not, and more than one quarter (26%) indicated they did not know or were undecided. Among those who indicated that Red Seal is not required for their trade area, feedback was mixed. Some respondents indicated a lack of awareness of the process, whereas other students expressed interest in obtaining the Gold Seal certification. Verbatim comments included: Red Seal Certification is a consideration, not main priority I am not in a Red Seal Trade Already am in a Red Seal Trade Planning on becoming a CET 13 Nova Scotia 2015 Labour Market Assessment

47 Red Seal Certification is not applicable to my trade Planning on becoming Gold Seal Certified I would like to become certified but becoming registered in this province is very difficult I would love to become a Red Seal Electrician (if the job accommodated it) as well as becoming a Certified Engineering Technologist What is Red Seal Certification? Of the students surveyed, 37% indicated they have no plans to register as apprentices. The balance (63%) indicated that they have registered or will register. This may reflect the success of outreach and education initiatives that serve to heighten student and worker awareness of career options and access to training, underscoring the overall benefits that accrue from becoming an apprentice and then advancing to becoming a journeyperson. The majority of students surveyed (63%) indicated they plan to register, or have registered, as an apprentice. Reasons for becoming an apprentice reflect student opinion that apprenticeship yields a more optimal career path (75% see this as an outcome); it provides the opportunity to earn higher wages (61%) and that it allows for better training opportunities in the future (60%). Additional important reasons for registering as an apprentice include: 48%: I will gain more skills faster; 43%: To improve my options for inter-provincial mobility; 39%: I will have mentorship opportunities; and 32%: My trade is compulsory certified in Nova Scotia Those who indicated that they did not plan to register as apprentices (17% of total responses) indicated that their trade is not compulsory certified in Nova Scotia (49%). Others said they need more information about apprenticeship (20%), while 13% responded that their employer would provide them with job training irrespective of whether or not they are registered as apprentices. Other reasons for not registering include: 8%: I do not see any benefit to registering as an apprentice; 7%: I will gain enough skills outside of apprenticeship; 5%: I am not sure I will continue in trades; 3%: I do not think I will earn any more money through apprenticeship; and 2%: It costs too much to register and to take apprenticeship training A large share (30%) of those who did not plan to register as apprentices also offered comments that reflect uncertainty or lack of information about the process, as well as a perceived lack of applicability to particular trade areas. Most (65%) respondents indicated that, prior to starting training in trades, they worked in another sector. The largest share was employed in retail sales (23%), while 19% selected other named sectors, including fishing, security and military service. Of those that have experience in another sector, the average tenure was 8.8 years. Note that several students reported as many as 40 years of previous experience. Most students surveyed (65%) had some work experience in another sector prior to starting their traderelated training. 14 Nova Scotia 2015 Labour Market Assessment

48 Almost one third (32%) said they had no previous sector experience and came to the program area directly from secondary school. Figure 2.3: Highest Educational Attainment, Student Survey provides the educational attainment among students surveyed. Highest Level of Education, n=449 0% 10% 20% 30% 40% 50% 60% 70% Graduate Degree (i.e., Masters or Doctorate) Professional Designation 2% 2% Undergraduate Degree 13% Certificate of Qualification/Red Seal Certification 1% Post-Secondary Certificate/Diploma from a Trade School/Community College/Technical College 18% Completed Grade 12 or adult high school diploma 60% Some Grade 12 through to GED Exams Grade 9 to Grade 11 Less than Grade 9 Other, please specify... 2% 1% 0% 2% Figure 2.3: Highest Educational Attainment, Student Survey Other responses were provided by 2% of the sample and included: Canadian Forces Navel Engineering School Bachelor of Arts Certificate in Sciences and Technology (upgrading course) Previous Community College Military electronic / electrical trades training - Air Force Some Grade 10 and General Educational Development (GED) Some university NSCC students identified a number of areas of occupational health and safety within which they have previous training. The majority, Workplace Hazardous Materials Information System (WHMIS) (99%), is followed closely by general Occupational Health and Safety (OH&S) training (94%), emergency First Aid (84%), fall protection (58%), and hazard identification and control (52%). Other areas of existing OH&S training include: 46%: Confined Space; 15 Nova Scotia 2015 Labour Market Assessment

49 36%: Fire Safety; 36%: Respiratory Protection; 20%: Accident / Incident Investigation; 11%: Rigging; 8%: Traffic Control; 6%: Leadership for Safety Excellence; 6%: Principles of Loss Control; 4%: Train-the-Trainer; and 3%: Construction Supervision (Foremen / Supervisors) Other areas of OH&S were reported by 8% of the sample and include wild fire firefighting, Helicopter Underwater Escape Training (HUET), Modular Egress Training Simulator (METS), Hydrogen Sulphide Safety Training (H2S), Oil Sands Safety Association (OSSA), and Construction System Training Systems (CSTS). 2.3 LEARNING PREFERENCE The majority of students prefer to learn through hands-on practice (90%), followed by on-the-job training (80%), training with qualified instructors (62%) and visual training methods (53%). Other less popular methods include: printed materials with visuals / diagrams / photos (46%); printed materials: mostly text-based books / manuals (21%); virtual campus / computer based training (11%); and audio tapes / CDs (7%) The vast majority of students surveyed (90%) prefer to learn through hands-on practices. Onthe-job learning and learning from instructors are also preferred methods within the apprenticeship learning foundation. 2.4 EMPLOYMENT & STUDENT STATUS As expected, the majority of NSCC students are full-time students (95%), with 5% indicating they are attending school on a part-time basis. At the same time, 37% of students reported having a part-time job (in retail / customer service-related sectors, as well as sectors associated with their trade trainings e.g., carpentry). 6% reported full-time employment (in similar sectors, albeit with more trades alignment). Most students are not working, either part-time or full-time (57%). 2.5 STUDENT MOBILITY PLANS NSCC students demonstrate a preference to work within the region of their campus: 64% are willing to commute within 100km; 53% are willing to travel to other provinces outside of Atlantic Canada; Commuting within Nova Scotia, but more than 100km, is agreeable to 39% of the students; 16 Nova Scotia 2015 Labour Market Assessment

50 40% would travel anywhere within the Atlantic Provinces; 30% would re-locate to the United States (US) or international destinations; and 3% indicated other locations, such as only in Cape Breton, anywhere, or other self-defined regions Of those surveyed, 51% indicate they plan to move or re-locate for work in the near future (within one to three years), whereas 49% say they do not. The following table identifies by campus, the percentage of job-seeking students who plan to move. Table 2.1: The Percentage of Job-Seeking Students Who Plan To Move, Student Survey Campus Percent Who Plan Number of n=447 to Move Responses Akerley Campus 52% 33 Annapolis Valley Campus 67% 27 Burridge Campus 64% 14 Cumberland Campus 25% 16 Institute of Technology Campus 56% 18 Kingstec Campus 54% 28 Lunenburg Campus 56% 34 Marconi Campus 55% 38 Pictou Campus 55% 38 Shelburne Campus 50% 10 Strait Area Campus 74% 31 Waterfront Campus 42% 154 Grand Total 51% 447 More than half of the students surveyed (51%) indicated they plan to move or relocate for work within the next 3 years. Of these only 10% say they will relocate within Nova Scotia. A slightly higher percentage of students at total campuses outside of the Halifax area plan to re-locate, a notable exception being those enrolled at the Cumberland Campus who emerge as least likely to relocate. The highest likelihood of moving is evident among students at the Strait Area Campus, while Waterfront Campus students are among those least likely to re-locate. Planned mobility may well be a significant concern for industry. There is a marked perception that a lack of job opportunities exist in Nova Scotia. While it is difficult to assess how intentions may translate into action, of those students who indicated they would move for work: 44% are unsure where they will eventually relocate; 43% identified a specific location where they plan to relocate; and 3% said they plan to commute for work outside of Nova Scotia See Figure 2.4: Location of Planned Move, Student Survey for a more detailed breakdown. 17 Nova Scotia 2015 Labour Market Assessment

51 Where will you be moving / relocating? n=213 Don't know/not sure Alberta Within Nova Scotia Other British Columbia Ontario Newfoundland and Labrador Saskatchewan Prince Edward Island New Brunswick Yukon Nunavut Northwest Territories Quebec Manitoba 3.4% 2.2% 1.3% 0.9% 0.9% 0.4% 0.4% 0.4% 0.0% 0.0% 6.9% 6.9% 9.9% 19.0% 44.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Percent of Movers Figure 2.4: Location of Planned Move, Student Survey 19% said they are heading to Alberta, 10% said they are re-locating within Nova Scotia, and 7% said they will move to British Columbia. Other locations include elsewhere in Canada as well as European / international locales. The main motivations to re-locate include: For higher wage rate (26%); Limited opportunities close to home (19%); More stability / volume of work (16%); For the experience / opportunity (15%); A better quality of life (9%); For personal reasons (7%); For more hours of employment (2%); and Other reasons (5%) Together, stability of work, more hours, and higher wages represent 44% of the primary reasons for relocating. This is an issue that will be of interest to policy makers, particularly in light of expected major projects. Among those who are not planning to move, personal reasons for staying were cited most often (44%), followed by the belief that they will have a better quality of life where they currently are (18%) and that there are plenty of work opportunities close to home (13%). 18 Nova Scotia 2015 Labour Market Assessment

52 2.6 INFORMATION TECHNOLOGY (IT) As might be expected from a web-based survey of current students, the majority of respondents reported being very familiar with computers and IT generally. 26% were familiar, 58% were very familiar, and 12% reported being experts in using computers and information technology. Only 4% responded as being novices. In terms of frequency of using computers and Information and Communications Technology (ICT), 91% of students surveyed use mobile computers (tablets, laptops, netbooks, wearable computers) some of the time (11%), often (30%) or always (50%). As well, 58% of students always use cell phones with Internet capability. The following common IT uses emerge: Cell Phones with Internet capability (88%); Desktop computer (84%); Digital camera/recording device (69%); and Cell phone with no Internet capability (35%). In terms of participation in online learning, only 9% of survey respondents indicated they are taking any part of their NSCC courses online. However, a high proportion (77%) indicated a willingness to use computers and e-learning to obtain training, with a slightly higher willingness among the younger survey participants. When asked about their awareness of new and emerging technology (hardware and software) that will be utilized in the construction sectors within the next few years, respondents cited specific software applications for design and project management, as well as increasing usage of technology such as tablets, smartphones and mobile computers. Several respondents indicated that they were not sure or did not know. 2.7 STUDENT PERSPECTIVES ON BECOMING A TRADESPERSON The majority of trades students indicated that the pursuit of trades training is their first choice for training and education (74%). 19% consider it a second choice. 7% view trades training as a less favoured educational choice. Going forward, student respondents plan to work in an average of 2 sectors, including industrial construction (45%), commercial construction (44%), and residential construction (41%). Institutional construction is the target for 15% of the respondents, whereas 10% are planning to work in road building. More than one quarter (26%) are unsure of what sector they will work in; 9% target other areas of employment such as government, specific sectors, military, consulting and recreation. In terms of starting wages, 36% of respondents expect they will earn between $14 and $20 per hour. 10% of respondents expect to earn less than the above and 38% expect more than $20 per hour as a starting wage. 5% did not respond and 11% are not sure what to expect (Figure 2.5: Wage Expectations on Study Completion, Student Survey). 19 Nova Scotia 2015 Labour Market Assessment

53 When you finish your studies, how much money do you expect you will earn per hour as your starting wage (excluding benefits)? n=439 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Minimum wage ($10.30) 1% $10.31 to $ % $12.00 to $ % $14.00 to $15.99 $16.00 to $17.99 $18.00 to $ % 12% 13% $20.00 to $ % $25.00 to $ % $30.00 to $ % $35.00 to $39.99 $40.00 or more 3% 4% Prefer Not to Answer 5% Don't Know/Not Sure 11% Figure 2.5: Wage Expectations on Study Completion, Student Survey Students were also asked about the level of employment they expect per year, measured by hours worked per year: 11% of students expect to work less than a full year (less than 1,500 hours), 28% expect to work between 1,500 hours and a full year (2,000 hours), 34% expect to work more than 2,000 hours and 26% are not sure. Only a very small percentage (2%) did not answer. The majority of students (72%) expect to become employed as soon as 2 months after completing their studies. Of these respondents, 11% indicated that future employment is already secured. An additional 14% expect they will find employment within The majority of students (72%) expect to become employed as soon as 2 months after completing their studies. Of these respondents, 11% indicated that future employment is already secured. An additional 14% expect they will find employment within 3 to 6 months of study completion and 1% believe that securing employment may take longer, but not in excess of 12 months. 12% are not sure. 20 Nova Scotia 2015 Labour Market Assessment

54 3 to 6 months of study completion and 1% believe that securing employment may take longer, but not in excess of 12 months. 12% are not sure. What do you believe the average journeyperson or worker with ten years experience makes per hour (excluding benefits) in Nova Scotia? n=439 0% 5% 10% 15% 20% 25% $12.00 to $13.99 $14.00 to $ % 1% $16.00 to $ % $18.00 to $ % $20.00 to $ % $25.00 to $ % $30.00 to $ % $35.00 to $ % $40.00 or more 9% Prefer Not to Answer 1% Don't Know/Not Sure 13% Figure 2.6: Wage Expectations with Industry Experience, Student Survey Ten years out of school and / or as journeypersons, 41% of students surveyed expect they will be earning more than $30 per hour, 23% estimate between $25 and $30 per hour, 14% expect $20 to $25 per hour, and 9% expect to be earning less than $20 per hour (Figure 2.6: Wage Expectations with Industry Experience, Student Survey). This variation in wage expectation and associated perceptions is not unanticipated. Students reported a high level of uncertainty as to how easy it is to enter the ICI trades: 45.6% stated they are unsure and only 20.5% noted that it is easy. This may be due to the limited exposure these students may have had to actually working in ICI trades. The remaining respondents either disagree or are neutral. Furthermore, only 30% believe they know where to go to get trades information. In terms of access to LMI, this is an interesting benchmark for monitoring the success of recent outreach and awareness efforts, as well as those strategies that are ongoing among industry participants. Only 30% of students surveyed said they know where to access information on trade employment. This suggests a need for educators and training providers to continue information dissemination efforts and for industry partners to continue to engage. 21 Nova Scotia 2015 Labour Market Assessment

55 Students reported that the strongest influence to pursue trades-related training is the enjoyment of working with their hands (82% say it is influential or very influential). This incentive is followed by the influence of parents and guardians (37% say parents are influential or very influential), as well as tradesemployed friends who recommend the career path (31% say such friends are influential or very influential). Television, advertisements and the advice of guidance counselors are least influential. This is noteworthy when one considers the reported surge of interest in, and registration for, trade-related training immediately following confirmation that the Arctic Offshore Patrol Ship would be built in Halifax ( 27% of students reported having an assessment of their aptitude / match for trades-related work performed. 63% did not engage in assessments and 10% did not know if they had participated in assessments. 2.8 CAREER PLANS In terms of student career plans: 88% plan to continue with training opportunities; 76% plan to continue with trades until retirement; 63% plan to reach a management-level position in trades; 53% plan on becoming a journeyperson; 44% plan to move to another province in search of trades-related employment; 34% plan to start their own trades-related business; 28% plan to complete their program at NSCC but not become an apprentice; 19% plan to become a teacher / instructor and train others in trades-related work; 9% plan to switch from trades work into another sector not related to construction; and 5% think they will leave trades and find another opportunity The majority of respondents believe that, as they continue their careers in construction, they are definitely (63%) or probably (29%) going to take additional training to increase their income-earning potential. 2.9 STUDENT DEMOGRAPHIC PROFILE The following provides a high-level demographic snapshot of the student respondents: Age: the eldest was born in 1949; the youngest was born in The average respondent was born in 1986, thereby yielding an average at-time-of-survey age of 27 years. Gender: 70% male, 29% female, 1% unidentified. Origin: 41% from Halifax, followed by Cape Breton (11%), Pictou (7%) and Lunenburg (6%), among other regions. Citizenship: 97% Canadian, 2% permanent resident or landed immigrant status, and 1% students with a permit. Aboriginal Status: 5%. Minority Status: 9.6% visible minority. 22 Nova Scotia 2015 Labour Market Assessment

56 Persons with Disabilities: 7%. Very few indicated that their disability impacts the performance of their trade-related work activities STUDENT FOLLOW-UP RESEARCH Engagement of this group is high: 70% of the respondents are willing to participate in any potential follow-up research KEY OBSERVATIONS: STUDENT SURVEY The majority of students surveyed were new to trades. They had not completed any other trades programs or certifications prior to enrolling in their current programs. Interest in apprenticeship was high, with the majority of students surveyed (63%) indicating that they planned to register for apprenticeships or are already registered as youth apprentices. This level of interest should capture the attention of industry and, in particular, the NSAA, especially with respect to the agency s need to address the demands that the student cohort places on the system. Most (65%) respondents indicated that, prior to starting training in trades, they worked in another sector. The largest share was employed in retail sales (23%), while 19% selected other named sectors, including fishing, security and military service. Of those that have experience in another sector, the average tenure was 8.8 years. Note that several students reported as many as 40 years of previous experience. Almost one third (32%) said they had no previous sector experience and came to the program area directly from secondary school. More than half of the students surveyed (51%) indicated they plan to move or re-locate for work within the next 3 years. Of these only 10% say they will relocate within Nova Scotia. Planned mobility may well be a significant concern for industry. There is a marked perception that a lack of job opportunities exist in Nova Scotia. While it is difficult to assess how intentions may translate into action, of those students who indicated they would move for work within the next 3 years: 44% are unsure where they will eventually relocate; 43% identified a specific location where they plan to relocate; and 3% said they plan to commute for work outside of Nova Scotia This is an issue that will be of interest to policy makers, particularly in light of expected major projects. Rural campuses had a slightly higher share of students who plan to move. Students at the Strait Area Campus were the most likely to re-locate, whereas students at the Waterfront Campus were, on average, relatively less likely to move; however, Cumberland Campus students were the very least likely to re-locate. Among those who are not planning to move, personal reasons for staying were cited most often (44%), followed by the belief that they would have a better quality of life where they currently were (18%) and that there were plenty of work opportunities close to home (13%). 23 Nova Scotia 2015 Labour Market Assessment

57 The majority of trades students indicated that the pursuit of trades training is their first choice for training and education (74%). The level of employment students expect per year, measured by hours worked per year: less than 1,500 hours (11%), between 1,500 hours and a full year (2,000 hours) (28%), more than 2,000 hours (34%), and 26% are not sure. The majority of students (72%) expect to become employed as soon as 2 months after completing their studies. Of these respondents, 11% indicated that future employment is already secured. An additional 14% expect they will find employment within 3 to 6 months of study completion and 1% believe that securing employment may take longer, but not in excess of 12 months. 12% are not sure. Information gaps exist: only 30% of students surveyed indicated they knew where to seek information on working in the trades. This finding underscores the importance of program marketing and information dissemination among all partners, including government and industry. Interview findings with industry stakeholders suggest they believe that students may also require additional information on apprenticeship and the apprenticeship system. The stakeholders indicated that some students may believe that an individual becomes a journeyperson immediately upon completion of a program of trade studies and / or if one engages in additional training following completion of in-school training. Similarly, interviews suggest that some students thought that enrollment in NSCC rendered one an apprentice. It is important to note that such misconceptions are not demonstrated throughout the survey data and may not be systemic. In keeping with student s self-acknowledged need for enhanced information on trades and trades training, mechanisms to facilitate a thorough understanding of the apprenticeship stream are very important. As noted, the vast majority of students surveyed (90%) preferred to learn through hands-on practices. On-the-job learning and learning from instructors were also important and highly preferred methods. This trio of learning methods is the cornerstone of the apprenticeship system, and, hence, it is important that students fully understand that these are the primary focus of activities and methods utilized within the apprenticeship system. 24 Nova Scotia 2015 Labour Market Assessment

58 3 WORKER SURVEY SUMMARY The purpose of the Worker Survey was to invite current ICI workers from across Nova Scotia to highlight their perspectives on their trade careers. Unlike the Student Survey, the Worker Survey was promoted using a social media strategy, which included both workers and employers. The goal of the survey awareness activities was to leverage social media to increase traffic to the worker and employer surveys. A number of relevant URLs were purchased and linked to a common survey portal that provided information about the study and how to access the core surveys. In addition, advertisements were purchased in local print media (e.g., All Nova Scotia) and the study was mentioned in an editorial published in The Chronicle Herald. Participation was incentive-based, with those who provided responses to the survey given the opportunity to enter their names into a random draw for one of several prizes donated by study sponsors. The online survey was deployed in the spring of 2014 and made available throughout the study period. The survey generated 783 responses, providing sufficient data on a range of characteristics to enable statistically reliable analysis of the sample population. The following section provides a summary of the Worker Survey findings. 783 workers responded to the ICI construction survey. 25 Nova Scotia 2015 Labour Market Assessment

59 3.1 TRADES TRAINING AND CURRENT TRADE Survey participants were asked to indicate those trades in which they have training. On average, the typical worker has some training in nearly 2 (1.7) trade areas (see Figure 3.7: Trade areas in which workers have received training, Worker Survey). Trades In Which Survey Repondents Have Been Trained, n=651 Heavy equipment operator (except crane) 4% Construction millwright (industrial mechanic) 4% Insulator 4% Ironworker 4% Painter 3% Gas fitter 3% Construction electrician (except industrial and power) 23% Roofer 5% Sheet metal worker 7% Welder/soldering machine operator 10% Carpenter (please identify any specialty) 17% Industrial electrician 11% Other (please specify)... 15% Plumber 12% Steamfitter/pipefitter/spri nkler system installer 12% Labourer 12% Figure 3.7: Trade areas in which workers have received training, Worker Survey Among professions, construction electrician (except industrial and power electricians) was cited most often (23%), followed by carpenter (17%) and other (15%). Among the other trades represented were: Labourer (12%) Steamfitter / pipefitter / sprinkler system installer (12%) Plumber (12%) Industrial electrician (11%) Welder / soldering machine operator (10%) Sheet metal worker (7%) Roofer (5%) Construction millwright (industrial mechanic) (4%) Heavy equipment operator (not including crane operator) (4%) Insulator (4%) Ironworker (4%) Painter (3%) Gas fitter (3%) Other encompassed a number of professions, including non-construction related occupations. 26 Nova Scotia 2015 Labour Market Assessment

60 Table B.1: Number of Worker Survey Responses by Trade Training Area (multiple areas of training per respondent), By Age in Annex B provides a summary of the number of respondents by trade and by age. Table B.2: Number of Worker Survey Responses by Trade, by Retirement Plan presents the number of worker survey responses by trade and by retirement plan status. More accurate information on retirement (by trade) is provided by the Business Manager Survey and interview responses, noted in Section 5. For the most part, survey participants are employed in the trades for which they trained. Construction electricians (except industrial and power electricians) represent 21% of those employed in their trade, carpenters represent 14% of the sample, with the remainder of survey participants distributed across the following main trades: Plumber (9%); Steamfitter / pipefitter / sprinkler system installer (8%); Welder / soldering machine operator (6%); Industrial electrician (5%); Sheet metal worker (5%); Labourer (5%); Construction millwright (industrial mechanic) (4%); Ironworker (2%); Insulator (2%); Heavy equipment operator (except crane operator) (2%); Instrumentation technician (2%); Oil and solid fuel heating mechanic (1%); Bricklayer (1%); Crane operator (1%); Boilermaker (1%); Gas fitter (1%); Lineman (1%); Structural metal and plate work fabricator / fitter (1%); and Non-destructive tester (NDT) (1%) Other main trades were selected by 10% of the respondents. These individuals subsequently identified 62 areas of specialization, as well as other trade areas, including several that are in administrative areas of the ICI trades, as well as other occupations that are non-trade related (e.g., automotive-related). That respondents who are currently not in trades were able to participate in the survey at all underscores one of the challenges of industry consultation. This matter is addressed further in the report recommendations (Section 7). Predictably, job titles align well with a worker s main trade. For example, electrician was cited as a job title 39 times, carpenter 23 times, plumber 22 times, welder 18 times, apprentice electrician 16 times, pipefitter 15 times, and sheet metal worker 13 times. 27 Nova Scotia 2015 Labour Market Assessment

61 3.2 YEARS & ROLE IN TRADES A total of 565 workers provided information concerning how long they have worked in ICI. The average tenure in ICI was 13.5 years, with one individual having spent 54 years in ICI and the newest ICI participant having logged only one quarter of a year. The average tenure in ICI construction among the workers surveyed was 13.5 years. 53% of those surveyed self-identified as a certified journeyperson possessing a Certificate of Qualification; 33% indicated they are registered as apprentices in Nova Scotia; 2% said they are planning to register; and 4% indicated that they are neither registered as a journeyperson nor as an apprentice, nor do they plan to register The remaining respondents (8%) set forth their own categorizations of registration status, such as CET, Canadian General Standards Board Certified, MT/UT2 (NDT classifications) and Engineer in Training. Table B.3: Number of Worker Survey Responses by Trade and by Registration Status in Annex B provides the number of worker survey responses by age and by certification status. 3.3 ROLE AS A JOURNEYPERSON 51% of the journeypersons reported being Red Seal Certified tradespersons; the remaining 49% indicated they do not possess the Red Seal Certification. Note, that of those who said they registered, 51% said their reason is because their trade is compulsory certified in Nova Scotia. 28% of the journeypersons have worked in a supervisory role and 38% have worked as a foreman. Nonetheless, at the time of the survey, only 31% indicated that they are currently employed as supervisors or foremen. Reasons cited include lack of interest, insufficient compensation for supervisory positions or, alternatively, respondent status of being currently unemployed. For those survey participants who are certified journeypersons, the average year of certification is The oldest certification dates from 1965, whereas the newest dates from More than 50% of survey respondents were certified in or after 2009 (see Figure 3.8: Year Certification Was Obtained, Worker Survey). 51% of the journeypersons surveyed reported they were Red Seal Certified. Of those workers who indicated being certified journeypersons, 66% had previously worked in either a supervisory or a foremen role. However, at the time of the survey, only 31% were working in these roles. 28 Nova Scotia 2015 Labour Market Assessment

62 Number of Workers Group ATN Consulting Inc. Year Certification Was Obtained, n= Figure 3.8: Year Certification Was Obtained, Worker Survey The majority of the journeypersons report having trained others as apprentices at one or more points during their career (74%). 28% report having taken on between 1 and 4 apprentices, 12 % report taking on between 5 and 9 apprentices and 2% indicate they have acquired 10 apprentices, while 32% say they have taken on 10 or more apprentices. 3.4 BECOMING AN APPRENTICE Among those respondents registered as apprentices, the reasons cited for becoming registered as apprentices include improving career progression (73%), better wages (72%) and enhanced training options (58%). Other factors include trades being compulsory certified Reasons for registering as an apprentice included improving career progression (73%), better wages (72%) and enhanced training options (58%). in Nova Scotia (51% of respondents), improving options for inter-provincial mobility (49%), fast tracking the acquisition of job-related skills (47%), and enhancing mentorship opportunities (29%). Other reasons were cited by 5% of the respondents. A small number of respondents (18 people) provided reasons why they have not registered as apprentices. Half indicate that the reason stems from their trades not being compulsory certified. Of 184 apprentices who had taken examinations, 38% took Level 1, 39% took Level 2, 17% took Level 3, and 4% completed Level 4. The certification examination was challenged by 2%. 3.5 AVAILABILITY FOR ICI WORK Workers were asked how much ICI work they performed within the previous 24 months. 29 Nova Scotia 2015 Labour Market Assessment

63 Of the 606 workers who responded, on average: 15.0 months were spent working in ICI (63% of their time); 3.5 months were devoted to residential construction (15%); 0.4 months were spent doing non-residential construction (2%); 1.5 months were devoted to non-construction-related work (6%); 2.4 months were spent being unemployed (10%); 0.6 months were spent in absences (2%); and; 0.5 months were spent in other activities (2% of their time) Looking at only those who are journeypersons (329 respondents), on average: 16.6 months were spent working in ICI (69% of their time); 2.6 months were devoted to residential construction (11%); 0.4 months were spent doing non-residential construction (1%); 1.4 months were devoted to nonconstruction-related work (6%); 2.0 months were spent being unemployed (8%); 0.6 months were spent in absences (2%); and; 0.5 months were spent in other activities (2% of their time) 34% of the workers surveyed reported having worked less than they desired during the past 24 months. Utilization was better for those who self-identified as journeypersons: 29% indicated they worked less than the optimal number of hours during the previous 24 months. Overall, however, 34% of the workers reported having worked less than they desired during the past 24 months (29% for those who self-identify as journeypersons). The majority (58%) said they had as much work as they wanted (61% for those who self-report as journeypersons), and 9% reported having more work than they wanted (10% for those who self-report as journeypersons). For those that were underemployed, the main reason cited was that there was not enough ICI work available during the period (80%). Other reasons included: 14%: I did not have sufficient work experience; 13%: I was not aware of work opportunities until too late; 13%: The location of the work was not satisfactory; 12%: I did not have the right skills; 11%: I did not have the necessary certification; 10%: The wages were not high enough; 5%: The working conditions were poor; and 3%: I was not interested in the type of work available 80% of those ICI workers who reported less employment than they desired believe underemployment was due to a lack of work in ICI construction. 30 Nova Scotia 2015 Labour Market Assessment

64 Other reasons for underemployment were provided by 23% of the respondents (46 workers). Reasons included limitations to their own organizational seniority or, in some instances, layoffs. More than half (58%) of the unemployed indicated they wanted 24 months of employment. Others wanted to work less than 24 months (26%), while the remainder wanted to work less than 12 months in ICI (16%). At the time of the survey, and among all trades people, 74% were employed in their main trade, 4% were employed but not in their main trade, 5% were employed in another sector, 16% were unemployed, and 2% were retired. 3.6 UNEMPLOYMENT 90 unemployed workers provided information about their individual circumstances: 90% said they were able to work in their trade; 99% were willing to work in their trade; 84% said they were searching for work in their trade; 59% said they were currently awaiting start of new employment in their trade; and 48% indicated that they were currently laid off and awaiting recall 24 workers reported they were not available for work for a variety of reasons, including personal preferences, attendance at school, illness or disability. Workers who are unable or unwilling to work are neither employed or unemployed, and thus not considered as part of the workforce. Of those unemployed, 19% expressed needing additional training in their trade to help them return to work in in the ICI construction industry. These respondents indicated a variety of programs and study areas that would be beneficial. Among the areas noted: Rigging At least Class 3 Drivers Licence, preferably a Class 1. Computer and IT Confined space, forklift, sky genie lift. Formwork High Pressure Tickets and CWB Safety and welding tickets Safety Supervisory / Safety upgrade Tech 3 One respondent noted that workers, should be able to receive certain courses that could enable [them] to transfer to other regions for employment, such as courses needed to work out west in the oil fields. It would give [workers] more options. You have companies that pay for your flights out there, but we can't get them to pay our travel if we live outside the "free zone " but are willing to travel for work. 31 Nova Scotia 2015 Labour Market Assessment

65 3.7 COMPENSATION, EXPERIENCE, EDUCATION, AND CERTIFICATIONS 493 respondents offered comments on their current wages: 20% earn less than $20 per hour; 32% earn more than $20 but less than $30 per hour; 30% earn more than $30 but less than $40 per hour; 14% earn more than $40 per hour; and 4% chose not to provide any information on their remuneration Trade-related employment is the main source of income for 79% of workers. For those who indicated that trade-related employment is not the main source of their household income, trade-related work comprises slightly less than 50% of total household incomes. Only 8% of those surveyed indicate that they have another job in addition to employment in trades. For the majority of surveyed workers in ICI construction (79%), traderelated employment is the main source of household income. On average, workers are members of households of 2.5 people. In terms of benefits, 78% indicated they have health-related benefits (e.g., medical, dental, vision care), 51% indicated they have life insurance / long term disability coverage, and 40% said they have employer contributions to a retirement savings plan. Just over one third (35%) said they have an employersponsored pension benefits plan, 18% said they receive non-wage benefits (e.g., personal use of employer tools / equipment, employee pricing of goods / services), and 8% said they receive other benefits such as profit sharing, vacation time, and training. The balance (15%) indicated that they do not have the option of participating in an employergenerated benefits plan. Table B.4: Benefit Types by Registration Status in Annex B presents benefit types by registration status and Table B.5: Benefit Types by Age Group outlines benefit type by age cohort. Training opportunities are provided to the majority of workers (76%). For those workers who indicated where training was received, 38 workers reported receiving training opportunities from their employers; 10 workers received training from their company; 3 received training from work ; and 57 received 78% or workers surveyed indicated they have health-related benefits, 51% have life insurance/long term disability coverage, and 40% said their employer contributes to their retirement savings. 76% of workers surveyed say they are provided with training opportunities. training from unions / locals, and/or training delivered from the NSCC and equipment manufacturers / vendors. ICI workers are well-educated, with 82% having achieved the equivalent or more than a post-secondary certificate / diploma from a trade school / community college / technical college. The majority of those surveyed (40%) indicated holding a Certificate of Qualification / Red Seal. 5% indicated they have an 32 Nova Scotia 2015 Labour Market Assessment

66 undergraduate degree or higher, and 36% hold a postsecondary certificate / diploma from a trade school / community college / technical college. Whereas 10% completed Grade 12 or hold an adult high school diploma, 4% have some Grade 12 through to GED exams and only 4% have less than Grade 11. 1% selected other qualifications. Table B.6: Educational Attainment by Age in Annex B outlines educational attainment by age. 82% of workers surveyed have achieved the equivalent or more than a post-secondary certificate / diploma from a trade school / community college / technical college. 51% of those surveyed participated in skills upgrading and / or training since embarking upon work in their trade. However, this may be influenced by the sample s relatively high proportion of newly minted journeypersons. Training consists of a number of programs, including block training directly linked to the particular apprenticeships. On average, trades workers have participated in 6.4 aspects of OH&S training. The majority of workers (97%) have WHMIS, 92% have fall protection, 82% have Emergency First Aid, 72% have general OH&S and 63% have their confined space training. Other training areas include: Hazard Identification & Control (43%); Respiratory Protection (40%); Fire Safety (39%); Rigging (31%); Accident / Incident Investigation (19%); Construction Supervision (Foremen / Supervisors) (17%); Leadership for Safety Excellence (14%); Principles of Loss Control (9%); Traffic Control (9%); and Train-the-Trainer (5%) Other aspects of OH&S training were identified by 11% of the respondents, including: Aerial lift platform, or AWP; All-terrain vehicle operations; Arc flash training; Asbestos; Audit, disability management; Basic Survival Training (offshore); Better SuperVision; Confined space rescue; CSTS; Elevated work platform; Excavating and safe trenching; First Aid and CPR Level C; Forklift & Boomlift; 33 Nova Scotia 2015 Labour Market Assessment

67 H2S Alive; Man Lift Training; and Safe Start Other areas of ICI experience include: Reading blueprints (79%); Ordering materials and supplies (63%); Training / instructing apprentices or other workers (60%); Coordinating and scheduling activities (55%); Forklift operation (48%); Estimating material and labour costs (37%); Preparing production reports and other reports (30%); Recruiting / hiring workers (22%); and Preparing bids (17%) 8% of survey respondents indicated they have none of the above and only have experience relevant to their role within ICI-related employment. In terms of current training, 39% of respondents said they were actively working towards a certification, many reporting working toward their Red Seal Certification. 39% of workers surveyed say they were actively working towards a certification at the time of the survey. The most preferred learning method amongst workers is hands-on practice (92%), followed by learning from more experienced people on-the-job (85%), learning through formal training with qualified instructors (68%), and studying printed materials featuring visuals such as diagrams and photos (52%). Other, less popular learning methods include: Visual means such as watching someone else, YouTube, instructional video clips (43%) Printed materials such as text-based books and manuals (27%) Virtual campus tools such as computer-based training and e-learning (16%) Audio tapes / CDs (11%) Other comments on training and learning preferences were offered by 1% of respondents, including the preference to see more female role models as instructors. 34 Nova Scotia 2015 Labour Market Assessment

68 3.8 WORKER MOBILITY When asked, How far are you willing to commute / travel temporarily to work in trades? more than half of all workers (58%) indicated they are willing to travel beyond Atlantic Canada to other Canadian provinces in order to seek work. Similarly, more than half (57%) said they would travel within a 100km radius from their current location. Nearly 40% of all workers surveyed stated that they would travel farther than 100km within Nova Scotia, and 36% said they would travel for work anywhere within Atlantic Canada. 27% said they would seek work internationally, and 6% provided open comments reflecting a range of specific and general work locations. Willingness to commute / travel was higher among younger cohorts. See Table B.7: Willingness to Travel/Commute for work by Age Range in Annex B for an overview of willingness to travel / commute for work by age range. On average, tradespeople worked 56.5% of their time within their local areas (within 100km), 8.4% of their time within a 2-hour drive from where they live, and 2.3% of their time working farther away within Nova Scotia. 3.8% of working time was spent elsewhere in Atlantic Canada, less than 1% in central Canada, 12% in western Canada, and 0.1% of working time was spent working in the North. A small share (0.3%) of working time was spent outside Canada, and 13.8% of working time was spent unemployed. On average, 31% of trades work time was spent working outside of Nova Scotia or in unemployment. For those who worked outside of Nova Scotia in the year prior, the most cited reason was higher wages (58%), followed by limited opportunities close to home (49%), the pursuit of more hours of employment (43%), more stability / volume of work (42%), better quality of life (33%), for the experience / opportunity (32%), and for personal reasons (6%). Other reasons were cited by 23% of those who left Nova Scotia. Of those surveyed, only 7% re-located to Nova Scotia for work. Reasons cited were predominantly personal. Within this group, 17 of 44 respondents indicated that the recognition of credentials obtained from outside of Nova Scotia is an issue. More than half of all workers (58%) indicated they are willing to commute/travel temporarily beyond Atlantic Canada to other Canadian provinces in order to seek work. The pursuit of higher wages was the main motivator among ICI workers seeking work outside of Nova Scotia (58%). Looking forward, one third of all workers surveyed indicated they do not intend to re-locate. Reasons cited were: 27%: Personal reasons; 21%: I can have a better quality of life where I am; 14%: Because I can make enough money where I am; 11%: The stability / volume of work is good where I am; 7%: There are plenty of work opportunities close to my home; 35 Nova Scotia 2015 Labour Market Assessment

69 4%: There are experiences / opportunities where I am; and 3%: Because I can get enough hours where I am Among those planning to re-locate, Alberta was cited most often as an employment destination. 19% said they would commute; 17% are not yet sure where to go. 3.9 USE OF INFORMATION TECHNOLOGY (IT) FOR INFORMATION MANAGEMENT The majority (79%) of workers surveyed consider themselves to be fairly familiar with computers and IT: 7% say they have a high level of expertise with computers and IT, 41% say they are very familiar and use computers regularly for many functions, and 32% say they are fairly familiar with computers and information technology. The remaining respondents are computer novices approximately 2% of such respondents never use computers at work or at home. Among the more common uses made of computers and ICT were: Cell phone with Internet capability (smart phones), used by 76% of workers; Mobile computer (tablet, laptop, netbook, wearable computer), used by 66% of workers; Desktop computer, used by 51% of workers; Digital camera / recording device, used by 38% of workers; and Cell phone with no Internet capability, used by 21% of workers In addition, workers noted their use of specific technology tools, including ipads, Global Positioning Systems (GPS), as well as specialized tools such as plasma cutters and texting equipment. While 30% of those surveyed do not use computers for work, those that do indicated they are using computers for communicating with coworkers (46%), participating in education / training (34%), troubleshooting (33%), and research / information gathering (33%). Various uses by one quarter or fewer workers include: 25%: Time sheets; 25%: Communicating with customers (e.g., ing); 24%: Communicating with suppliers; 21%: Travel information / arrangements; 20%: Buying products (e.g., online purchases); 19%: Plans reviews; 19%: Safety paperwork; 17%: Scheduling and assignments; 17%: Report writing; 16%: Material / inventory tracking; 14%: Project management; 10%: Log books; 9%: Business administration (e.g., business banking); and 7%: Computer-assisted design (CAD) 36 Nova Scotia 2015 Labour Market Assessment

70 When asked to identify barriers to the use of ICT in the ICI workplace, workers felt that software and equipment costs are most likely to be the biggest deterrents. Other barriers are noted in the following table. Table 3.1: Barriers to the use of ICT in the ICI workplace, identified by workers n=558 Yes (Barrier) No (Not a Not Sure Barrier) Availability of training 30% 44% 27% Software available 23% 43% 34% Environmental conditions 28% 44% 28% Lack of use by others in my work 31% 41% 29% Lack of use by my employer 25% 47% 28% Cost of equipment 39% 34% 27% Cost of software 38% 31% 31% Durability / ruggedness of available devices 37% 36% 27% Concerns about reliability 28% 44% 28% Concerns about security of information 28% 44% 28% Concerns about security of computer equipment 30% 42% 28% Maintenance of the devices / programs 24% 44% 32% A significant share of respondents said they are not sure how much of a barrier the above factors pose to the use of ICT in the ICI workplace. Looking to the future of ICT in the ICI workplace, many workers identified the use of tablet computers as the next level of innovation IT & LEARNING Nearly 60% of workers had participated in training delivered through computers or telecommunications (e.g., e-learning) and 70% indicated a willingness to use computers and telecommunications to obtain training. Generally, willingness to use ICT for training purposes correlates strongly with a lower age cohort. Of these workers, a number of individuals identified work-related subject areas they would like to study, whereas others identified an interest in learning about technology itself, as well as how to better use computers and tablets PERSPECTIVE ON BECOMING A TRADESPERSON For the majority of respondents, working in trades is the primary career choice (68%). Trade work is the second choice for 23% of workers surveyed. For 10% of surveyed workers, trade work is further down the list of career choices. 37 Nova Scotia 2015 Labour Market Assessment

71 Almost half of the workers surveyed said they entered trades through a pre-apprenticeship or preemployment training prior to actually working in ICI (49%). 34% were employed in trades prior to taking any trades-related training (direct entry). A small share (4%) of survey participants came to trades by means of introduction to the sector by an employer, service provider or through a union. Almost half of the workers surveyed said they entered trades through a pre-apprenticeship or pre-employment training prior to actually working in ICI (49%). 549 workers identified 790 areas of work or study that they performed prior to work in the ICI construction sector. Just over one third of workers said they were students prior to working in ICI trades. Others were working in a variety of sectors, including: 15%: Retail Trade; 14%: Agriculture, Forestry, Fishing and Hunting; 11%: Manufacturing; 10%: Non ICI-Construction; 8%: Transportation and Warehousing; 8%: Accommodation and Food Services; 4%: Arts, Entertainment, and Recreation; 3%: Wholesale Trade; 3%: Information Technology 2%: Mining; 2%: Utilities; 2%: Professional, Scientific, and Technical Services; 2%: Management of Companies and Enterprises; 2%: Educational Services; 2%: Other Services (except Public Administration); 1%: Finance and Insurance; 1%: Real Estate and Rental and Leasing; 1%; Administrative and Support / Waste Management and Remediation Services; and 1%: Health Care and Social Assistance Other activities were highlighted by 14% of respondents. Comments provide details on occupations and / or status prior to working in trades, including roles in administration, the automotive sector, the military and other occupations. Nearly one third of all workers surveyed agree that it is easy to enter into the trades (46% are neutral on the matter and 21% disagree). Almost one half indicate that they know where to get information on the trades. More than half would recommend a career in trades to their children Almost half of the workers surveyed said they know where to get information on the ICI trades but nearly 18% say they do not know where to go to get information about the ICI construction industry. 38 Nova Scotia 2015 Labour Market Assessment

72 (55%) and 63% would recommend a career in trades to other family members. By far, the most important influence for entry into trades is the enjoyment of working with one s hands (56% say this is very influential and 24% say it is influential). Advertisements on television and advice from guidance counselors were the least influential although, notably, there was a surge in interest in trades immediately following the announcement that Irving would be involved in the Federal Government s National Shipbuilding Procurement Strategy. Table 3.2: Factors influencing workers to enter into ICI trades n=550 Not at all influential My parents / guardians involvement in trades Somewhat Neutral Influential Very influential influential 27% 15% 13% 20% 16% 10% Not applicable An advertisement on TV 60% 7% 12% 3% 1% 17% A guidance counselor who suggested trades would be good for me My friends are in trades and they suggested it I enjoy working with my hands and this seems to fit I started working for a contractor and decided to continue With respect to the future, workers are less certain about taking on management roles in ICI and are also less certain about leaving ICI completely. Only a few workers (16%) appear inclined to start their own ICI businesses. 57% 6% 12% 8% 1% 16% 34% 13% 11% 20% 15% 8% 5% 8% 5% 24% 56% 2% 30% 6% 12% 15% 22% 15% 3.12 CAREER PLANS & RETIREMENT The majority of workers say they will probably (43%) or definitely (28%) continue with their trade careers until retirement. Similarly, as their own careers progress, the respondents will probably (44%) or definitely (20%) train others. With respect to the future, workers are less certain about taking on management roles in ICI and are also less certain about leaving ICI completely. Only a few workers (16%) appear inclined to start their own ICI businesses. 39 Nova Scotia 2015 Labour Market Assessment

73 Table 3.3: Retirement plans among workers n=550 Definitely Not Probably Not Sure Probably Definitely Not Will you continue what you are doing in ICI 3% 6% 19% 43% 28% until you retire? Will you train others in ICI-related work? 3% 9% 25% 44% 20% Will you reach a management level position in ICI? Will you start your own ICI-related business? Will you move from ICI work into another sector not related to construction? 8% 17% 38% 24% 13% 20% 30% 34% 11% 5% 15% 34% 41% 8% 2% In general, workers are indecisive about their retirement plans, but some expect they will take on parttime roles within ICI after retirement (29%). Table 3.4: Post retirement ICI attachment plans among workers n=550 Definitely Probably Not Sure Probably Definitely Not Not Leave the labour market (completely 6% 28% 41% 19% 7% retire)? Take on a part-time role in the ICI 7% 17% 47% 27% 2% construction sector? Take on a part-time role in a non-ici 12% 26% 50% 11% 1% construction sector? Take on a full-time role in a non-ici 20% 34% 42% 3% 1% construction sector? Take on a part-time role in another sector? 11% 24% 56% 8% 1% Take on a full-time role in another sector? 20% 29% 47% 4% 1% Given that 76% of the survey sample plan to retire more than 10 years from now and that 12% plan to retire between 5 and 10 years from now, the level of indecisiveness is not surprising. For those who are planning to retire sooner (within the next 5 years), the average rate of retirement is just under 2% of the trades-related labour force per year. Based on our estimates of the trades-related labour force (see Section 6), approximately 172 tradespeople will leave the labour force (retire) each year for the next 5 years. Retirement is more than 10 years away for the majority of the workers surveyed (76%). Approximately 172 tradespeople are expected to leave the labour force (retire) each year for the next 5 years. Among those who will retire within the next five years, the main motivation is having reached retirement age (39%) while others said they will likely not retire completely (17%). 12% said that ICI workplace employment had become too difficult or was physically demanding. As noted in Table B.2 which outlines the number of worker survey responses by trade and by retirement plan, there is no 40 Nova Scotia 2015 Labour Market Assessment

74 marked threat to any particular trade due to retirement. However, as shown in Section 6, comparing ICI employment estimates (derived from BuildForce Canada data) reveals a number of occupations as potentially impacted by retirement DEMOGRAPHIC PROFILE This section provides demographic characteristics of the sample. The average age of survey participants is 39 years. The following table provides a breakdown of average age by gender and by level of certification / apprenticeship status. Table 3.5: Average age of workers by journeyperson status n=554 Female Male Other Prefer Not to Overall Average Answer I am a Certified Journeyperson (have Certificate of Qualification) I am not a Certified Journeyperson or an Apprentice and I have no plans to register I am not yet registered in Nova Scotia as an Apprentice, but I plan to register I am registered in Nova Scotia as an Apprentice Other Overall Average Figure 3.9: Age by Status, Worker Survey provides worker age by status as an apprentice or a journeyperson. The average age of Certified Journeypersons is 44 years while the average age of registered Nova Scotia Apprentices is 31 years. 41 Nova Scotia 2015 Labour Market Assessment

75 Worker Survey Age Ranges by Status n= to to to to to to to to I am a Certified Journeyperson (have Certificate of Qualification) I am registered in Nova Scotia as an Apprentice Figure 3.9: Age by Status, Worker Survey Of the 554 who submitted responses, 31 identified themselves as female. As shown in Table 3.6: Gender distribution of workers by journeyperson status, approximately 36% of those who were female reported having plans to register as an apprentice, compared to 64% of males. For every male who was not an apprentice but planned to become one, there were 10 females who were not apprentices but planned to become one. Table 3.6: Gender distribution of workers by journeyperson status n=554 Female Male I am a Certified Journeyperson (have Certificate of Qualification) 3.4% 96.6% I am not a Certified Journeyperson or an Apprentice and I have no plans to register 7.1% 92.9% I am not yet registered in Nova Scotia as an Apprentice, but I plan to register 36.4% 63.6% I am registered in Nova Scotia as an Apprentice 6.2% 93.8% Other 10.0% 90.0% Grand Total 5.6% 94.4% Males represent an average of 94% of all worker survey respondents, while females account for 6%. Other characteristics include: Number of People in Home: o o o o 24% of respondents are 1 person households; 28% are 2 person households; 19% are 3 person households; 17% are 4 person households; 42 Nova Scotia 2015 Labour Market Assessment

76 o o 6% are 5 person households and; 3% are 6 or more person households, while 4% prefer not to answer. Household Formation: o o o o 49% of respondents are married or in a common-law relationship and have children; 27% are married or in a common-law relationship and have no children; 17% are single; and 3% are single-parent families, while 4% prefer not to answer County of Origin: the majority of respondents were from Halifax (41%), followed by Cape Breton (12%) and Pictou (6%). Other counties represented in the sample include: o o o o o o o o o o o o o o o o 5%: Colchester; 5%: Kings; 4%: East Hants; 4%: Lunenburg; 3%: Antigonish; 3%: Cumberland; 3%: West Hants; 3%: Yarmouth; 2%: Digby; 2%: Inverness; 1%: Annapolis; 1%: Guysborough; 1%: Queens; 1%: Shelburne; Less than 0% from each of Richmond and Victoria; and 3% from outside Nova Scotia Citizenship Status: o o o o 98% reported being a Canadian citizen; 1% indicated they are a permanent resident or landed immigrant; 1% indicated other and noted their First Nation status; and One person noted their dual US and Canadian citizenship Personal Characteristics: o o o 5.5% indicated they are Aboriginal; 6.4% indicated they are a visible minority; and 4% indicated they have a disability and, of these, 7 people indicated that their disability impacts their work in trades 43 Nova Scotia 2015 Labour Market Assessment

77 3.14 FOLLOW-UP RESEARCH The workers who participated in this research are currently engaged in industry and 61% are willing to participate in future, follow-up research KEY OBSERVATIONS: WORKER SURVEY The survey of ICI construction workers generated 783 responses among workers who, on average, worked within the ICI sector for more than 13 years. 53% of those surveyed self-identified as a certified journeyperson possessing a Certificate of Qualification, while 33% indicated they were registered as apprentices in Nova Scotia. Journeypersons were, on average, 44 years of age. The average age of apprentices was 31 years. Interestingly, for every male who was not an apprentice but planned to become one, there were 10 females who were not apprentices but planned to become one. Being Red Seal Certified was reported by 51% of the journeypersons surveyed and, of those who were certified journeypersons, 66% had worked in either a supervisory or foreperson role, although only 31% were working in these roles when surveyed. Lack of work and lack of compensation for higher-levels of responsibility and associated liabilities were among some of the reasons cited for not presently working in these positions. The majority of the journeypersons reported having trained others as apprentices at one or more points during their career (74%). Among those in the sample registered as apprentices, reasons for choosing the apprenticeship stream included the prospect of improving career progression (73%), better wages (72%), enhanced training options (58%), and compulsory certification (51%). Underemployment was reported by 34% of the workers who indicated that they worked less than they desired over the preceding 24 months. Of all workers, an average of 15 months was spent working in ICI over the previous two years (63% of their work time); Utilization was better for those who self-identified as journeypersons. Within this group, 29% said they worked less than they wanted during the previous 24 months. Among those who reported underemployment, 80% believed this was due to a lack of work in ICI construction. 493 respondents offered comments on their current wages: 20% earned less than $20 per hour; 32% earned more than $20 but less than $30 per hour; 30% earned more than $30 but less than $40 per hour; 14% earned more than $40 per hour, and 4% chose not to provide any information on their remuneration 44 Nova Scotia 2015 Labour Market Assessment

78 For every one construction worker there were, on average, 2.5 members of a household depending, in part, on that worker s ICI income. For the majority of workers, the dependency was high; for 79% of ICI workers, their trade-related employment was the main source of household income. With respect to the compensation packages enjoyed by ICI workers, 78% reported health-related benefits, 51% reported having life insurance / long term disability coverage, and 40% indicated that employers contributed to retirement savings. Training opportunities are provided to the majority of workers (76%). ICI workers are well-educated, with 82% having achieved the equivalent or more than a post-secondary certificate / diploma from a trade school / community college / technical college. In terms of current training, 39% of respondents said they were actively working towards a certification, many reporting working toward their Red Seal Certification. Willingness to travel / commute for work was widespread. More than half of all workers (58%) indicated they were willing to commute / travel temporarily beyond Atlantic Canada in order to obtain work. Higher wages was the main incentive for mobility among ICI workers seeking work outside of Nova Scotia in 2013 (58%), followed by limited opportunities closer to home (49%). Almost half of the workers surveyed said they entered trades through a pre-apprenticeship or preemployment training, prior to actually working in ICI (49%), while 34% entered the sector via employment (direct entry). Almost half of the workers surveyed said they knew where to get information on the ICI trades; however, nearly 18% said they did not know where to go to seek information about the ICI construction industry. Consistent with the 2007 study numbers, 55% said they would recommend a career in trades to their children. The majority of workers say they will probably (43%) or definitely (28%) continue with their trade careers until retirement. Similarly, as their own careers progress, the respondents will probably (44%) or definitely (20%) train others. With respect to the future, workers were less certain about taking on management roles in ICI, and were also less certain about leaving ICI completely. Only a few workers (16%) appear inclined to start their own ICI businesses. Retirement was 10 or more years away for the majority of workers surveyed (76%). For those who are planning to retire sooner (within the next 5 years), the average rate of retirement is just under 2% of the trades-related labour force per year. Based on our estimates of the trades-related labour force (see Section 6), approximately 172 tradespeople will leave the labour force (retire) each year for the next 5 years. Among those that were retiring sooner, the Worker Survey by itself did not provide enough data to draw meaningful conclusions concerning the occupations that might be affected by retirement. However, when considered in the context of employment estimates derived from BuildForce Canada data, a number of occupations emerge as potentially impacted by retirement (see Section 6). 45 Nova Scotia 2015 Labour Market Assessment

79 4 EMPLOYER SURVEY A total of 111 surveys were accessed by employers who employ a workforce of 2,426 individuals. 4.1 EMPLOYMENT For those who provided information on gender distribution, employment tends to be male dominated (91% of employees are male, 9% are female). On average, 85% of any one organization s employment was tradespeople. For larger firms, the Employers report that males comprise the largest share of their labour force (91%). ratio of trade employment to total employment was lower, while for smaller operations (i.e., 2 to 5 employees) tradespeople were more likely to make up 100% of the workforce. 46 Nova Scotia 2015 Labour Market Assessment

80 According to employers, the average age of the overall workforce among the organizations surveyed was 40 years, with the average age of journeypersons just under 43 years, and the average age of apprentices just under 28 years. In terms of employment by trades, Construction Electricians (except Industrial and Power) were the largest single group (19.7%), then Carpenters (19.2%), followed by Labourers (12.6%), and Steamfitters / Pipefitters / Sprinkler System Installers (9.3%). Other trades included: The average age of the overall workforce among the organizations surveyed was 40 years. The average age of journeypersons was just under 43 years and the average age of apprentices was just under 28 years. Ironworkers (6.1%); Plumbers (5.7%); Heavy equipment operators (except crane operators) (5.5%); Insulators (4.2%); Glaziers (3.2%); Roofers (3.1%); Cement finishers (2.6%); Crane operators (2.5%); Bricklayers (2.0%); Welders / soldering machine operators (1.1%); Gas fitters (1.0%); Instrumentation technicians (0.5%); Linemen (0.5%); Painters (0.4%); Oil and solid fuel heating mechanics (0.3%); Blasters (0.2%); Construction millwrights (industrial mechanics) (0.1%); and Industrial electricians (0.1%) From 39 companies that provided details on 440 staff who are not directly involved in trades-related tasks, the following positions were represented: Supervisors / Foremen (30%); Administration (20%); Managers (14%); Estimators (13%); Project Managers (11%); Design / Planning (6%); Engineering (3%); Sales / Business Development (3%); and Other (0%) 47 Nova Scotia 2015 Labour Market Assessment

81 4.2 EMPLOYMENT FLOWS Over the past 5 years, a total of 940 employees were hired by 40 firms, an average of 188 employees per year, and an average of 4.7 employees per organization per year. Over the same period, 39 organizations reported that 67 workers retired, for an average of just under 2 employees retiring per firm over the five years. Looking forward from 2014 to 2018, the average Over the past 5 years, the typical ICI employer who took on new staff hired an average of 4.7 employees per year. firm anticipates that employees will retire at a rate of just under 4 people per year, for a total retirement of nearly 20 people per firm over the 4 year period. 4.3 UNDERSTANDING LABOUR POOLS & HIRING Employers were asked about their perceptions of labour supply / demand issues and what they see as the major issues affecting industry hiring over the next several years. Concerns expressed included: the level of steady work flow; lack of construction activity; and competitive pressures from labour markets elsewhere, particularly those in western Canada Within some trades, the management of labour market supply is an ongoing issue. Nonetheless, some enterprises are reporting that given the labour force available to them, they have more work than they can handle. Skill levels, as well as the volume of available workers, are a concern. This perspective seems to be more correlated with companies that are base in urban areas, most particularly Halifax, where employers appear to be more concerned with the supply of workers than the supply of work. Verbatim comments to supply and demand issues include: The level of steady work flow and a lack of construction activity are areas of concern for employers, as is the competitive pressures from labour markets elsewhere. Employers reported labour hiring challenges including wage pressures from western Canada, the level of local demand for trade work, as well as issues with respect to the training new hirers receive: a concern with skill levels among the workforce. Having enough work to keep busy year round; Lack of applicants; Lack of construction; Compensation that compares to out west or to Newfoundland; Consistency of work in the Maritimes: there are so many opportunities elsewhere; 48 Nova Scotia 2015 Labour Market Assessment

82 Demand will outstrip supply; Finding enough interested persons, prepared to make the commitment. It's the age of instant gratification perhaps; I believe the electrical market is becoming flooded; I do not see any issue with hiring of new apprentices looking to get into the trade; I do not see any issues in the sprinkler industry in the next several years; I feel that skilled, experienced workers are very hard to find. Most of our experienced workforce is already working in the province or working out west and have no interest in working here for less money. I have been in a situation over the previous 2 years where I could not find qualified operators; If there are any major industrial projects within the next 5 years, the main issue will be the short supply of NS-based tradespeople; Impossible to compete with Alberta wages, incentives, and tax rates; Lack of experience / lack of hands-on, practical experience / lack of motivated persons; Less younger people to hire because they all travel to western provinces and to Labrador; You need more hands-on tests to show you can do the job. It is not all class work, in the field you don t use 85% of what you study for in the exam; People are looking for full-time employment, which in our industry is virtually impossible to guarantee; Reduced labour force due to retirement / shortage through retirement and outmigration of younger tradespeople; Skilled employees from NS have been attracted to positions in Newfoundland and western Canada by higher wages. This may change with current world oil price reductions and the accompanying capital expenditure reductions by energy producing companies; The demand for labour is only going to increase in the coming years due to retirements. The major issue I see with hiring is that there is not enough time to properly train enough workers to replace the workers that are planning on retiring over the next 5-10 years; The economy, increasing trades person age, less experienced journeypersons, increasing Workers Compensation claims; There is a shortage of qualified people in the province. Primarily, I think, due to the migration west; To get good people to stay: not temporary foreign workers; To maintain younger workers in the industry. We require continuous work to keep the workers in our province. The younger workers and employers must see the value of completing the apprenticeship program for their trade; Very limited supply of qualified workers; and With the elevated safety rules and regulations, it is getting harder to find top quality people to fill the positions. Not enough young tradespeople are getting involved in the trades and many are not ready or willing to step up into leadership roles and responsibilities In terms of hiring trades people, employer comments reflected a similar array of challenges, such as wage pressures from western Canada, the level of demand for trade work here, as well as issues with respect to the training that the new hires are receiving. 49 Nova Scotia 2015 Labour Market Assessment

83 Verbatim comments include: Available work, young people just out of school will leave due to temporary shortage of work; A lack of young people; Alberta. Once trained they make more money outside Nova Scotia; An apprenticeship program to educate the worker; As work here decreases, we cannot offer full-time work to younger, newer tradespeople; Changes to EI means that workers temporarily out of work will not stay in the area; Competition from the west; Different generation with computers, etc. People find it easy not to work hard for a living now so you need incentives to get in the trades and stay in Nova Scotia; Experience and dependability; Having to hire through unions people who need to be trained and are not ready to do a job. Very costly compared to non-union; Most of our skilled workers are leaving the province for the larger incomes. In the trades it is not unusual for workers to be away from home even when working in their own province. With this in mind, they do not feel it is much of a problem to travel west and in most situations make more than at home and do less work; Labour cost are too high and bad attitude on the part of new young people; Lack of experience / the skill level is low; Limitations on apprentice-journeyman ratio. Many companies would hire extra if they could indenture more than one; No work, too many mainland people coming across the causeway and taking the work way too cheap; Potential employees may not be members of a union; Perception of industry as being seasonal; Starting age; The trades need to be introduced in high school; The youth today generally are lacking in the understanding of working with their hands, problem solving, committing to set work hours and long term service; and There are not enough Journeymen crane operators Notwithstanding the above, other employers said they are not experiencing any issues with respect to hiring of available / interested workers. However, as noted, several employers commented on the level of skills and experience available within the labour force. When asked about those specific occupations for which skills and experience levels are an issue, employers identified the following: Employers reported that younger, more educated people wanting to get into the trades, including first year apprentices, are the best new recruits. This contrasts with the observations of one employer who hires in non-certified trades. In this instance, more on-the-job training was necessary to ensure that skill levels are addressed. 50 Nova Scotia 2015 Labour Market Assessment

84 All trades; Bricklayers and laborers; Carpenters; Concrete finishers; Crane operators; Workers in drywall, suspension systems, doors and hardware; Electrical - many of the electricians are older. We don't seem to see any younger people available; Estimators; I am concerned with all aspects of our business due to the planned retirements over the next 5-10 years and the lack of experience of the workers that will replace these retirees; I am not familiar with what is going on in trade sectors other than my own with respect to hiring; Shortages will apply to all trades; Ironworkers; Not concerned, could use more steam fitters. I have trained many apprentices and occasionally they become my boss. It's the nature of the work, people move on; Roofing; Sprinkler fitter; The large age gap between retiring supervisors and the next generation; The level of desire of some of the young people coming into the electrical trade; and There is no skilled tradespeople coming up they think they re skilled but all they have is bad work habits. They need on-the- job training, that is the only way to learn Some employers stated that skill levels are a concern across all trades, while others echoed the view I am not concerned with the level of supply for our needs. Employers noted administrative jobs (because the applicants are highly skilled) and labourer and material handler positions (because the work requires less skills relative to other positions) are easiest to fill. As well, employers said that younger, more educated people wanting to get into the trades, including first year apprentices, are easy to hire. Verbatim comments include: We can't find an abundance of suitable workers for any jobs / I don't think it is easy to fill any jobs right now; There are no jobs that are easy to fill; Administration because you can train easier and quicker / because we provide better compensation packages; Nothing in roofing other than driving trucks is easy to fill; Rough carpentry skills. Seems like the NSCC concentrates on this skill with dozens of other skills required. Working in small markets requires multi-skilled workers; Residential wiring jobs are the easiest to fill; There are more construction electricians than industrial. The apprentices just coming out of school can do this job easier; Low level apprentices, because they carry no responsibilities; 51 Nova Scotia 2015 Labour Market Assessment

85 Roofers, plasterers, painters, ground workers: apart from the odd one, you don t have to be very clever in that field; Entry level because low skill is required, just an interest and ability to learn; Technology, computer related positions; Apprentices with limited skills; Harder to find well-trained, seasoned trades people; and Jobs outside the city center. A large portion of employees in the field would rather drive right to a site, not have to pay for parking (or walk any distance) or put up with traffic The majority of employers felt that better employment options outside of Nova Scotia are an issue with respect to finding workers (75% or 27 employers) 16. The majority also identified other factors, including negative attitude/ lack of motivation amongst applicants (22 of 36 employers) as well as applicants lacking experience (22 of 36 employers). Other factors include: General lack of skilled people (18 of 36 employers); A lack of knowledge about the work (13 of 36 employers); A lack of interest in this type of work (12 of 36 employers); Wage expectations are too high (11 of 36 employers); Applicants are lacking proper license, permit, or certification (10 of 36 employers); The hours are too irregular (10 of 36 employers); A lack of qualifications/education needed (9 of 36 employers); There are not enough hours (9 of 36 employers); Lack of people applying for positions (5 of 36 employers); Wages are too low (5 of 36 employers); Location of work (4 of 36 employers); Difficult working conditions (2 of 36 employers); and Other not specified (2 of 36 employers); See Figure 4.10: Issues for Employers Finding Workers, Employer Survey below. The majority of employers felt that better employment options outside of Nova Scotia are an issue with respect to recruiting local workers (75%). A majority also identified other factors, including negative attitude/ lack of motivation amongst applicants (61%), as well as applicants lacking experience (61%). 16 Note that, where specific questions generated few respondents (either because of skip sequencing programmed within the survey or respondents choosing to not respond to a particular questions), we report both the frequency as well as the number of respondents to that question. 52 Nova Scotia 2015 Labour Market Assessment

86 Are any of the following issues for your company in finding workers? n=36 Applicants are lacking proper license, permit, or Applicants are lacking experience. Lack of people applying for positions. General lack of skilled people. A lack of interest in this type of work. A lack of knowledge about the work. A lack of qualifications/education needed. Negative attitude/lack of motivation. Difficult working conditions. Location of work. Wages are too low. Wage expectations are too high. There are not enough hours. The hours are too irregular. There are better options outside of Nova Scotia. None of the above. Other (please specify) Figure 4.10: Issues for Employers Finding Workers, Employer Survey Looking to the future, approximately half of the employers indicated that they have no concerns about the level of labour supply in any non-trades related occupations within ICI. Those that do have concerns pinpointed specific jobs (e.g., sprinkler designer, project manager, specification writers, and dispatchers, among others). Verbatim comments include: Dispatchers. Most young workers are not interested in some of the lower level jobs. They want to start at the top, with a "title", and are not interested in putting in the time to learn the business and move up the ladder accordingly; Too many so-called knowledgeable people designing the construction industry and they make the mistakes but the subs have to pay for it. It is usually the guy in the field that corrects the problem, while the higher up walk away; Spec writers not knowing their job; Sales and business development - lack of motivation; Qualified estimators; It takes time to train and if they leave for any reason you just can t hire off the street; Good qualified electrical estimators; 53 Nova Scotia 2015 Labour Market Assessment

87 Fitter / welder - can't find skilled labour: required to train and takes time; Experienced sprinkler designers; Experienced estimators, ours is a specialized sector so you need to be involved in it for several years before you can move to that position; Estimators. There is a severely limited pool of experienced people that are also bilingual; Estimators - lack of experience; Detailing - not many available with structural experience; Project Managers - lack of experience; and Estimating for structural steel - no specific training for this and in-house training takes a lot of time 4.4 CAREER PLANS & RETIREMENT The majority (64%) of companies indicated they have a succession plan for their companies, 22% said they did not, and 14% was not sure. 33% of the employers will retire within the next 5 years. Of those that do not have a plan, 3 respondents said they believe they need one, 3 said they did not (citing the aging population and a slowing down of activity), and 2 respondents were not sure. The person responding to the survey on behalf of his or her company was asked about his or her own retirement plans. 33% will retire within the next 5 years. 14% indicated they will retire in 5 to 10 years and 53% indicated that they will retire in more than 10 years. Going forward, the survey does not indicate how management roles will be filled once current management retires. As noted in the 2007 LMA, some of the management roles are viewed as roles developing out of years of practical and applied experience in the workforce. Given that the average firm responding to this survey is fairly large by Atlantic Canadian standards (44 employees), it is reasonable to expect that the transition to new management would be more easily accomplished than for smaller organizations and, in particular, smaller owner-run organizations. Those who are retiring within 5 years were asked about their potential interest and role in ICI during retirement. The area of highest probable involvement is as a consultant to the industry (5%). Five indicated that they may mentor or train industry participants or take on a supervisory / foremen role. Becoming an in-classroom trainer was least likely (2 responses of 11 employers) amongst this sample. Table 4.1: Employer post retirement plans n=11 Probably Not Not Sure Probably As a manager / foreman As an in-class trainer As a mentor to new entrants As an on-the-job trainer As an industry consultant Nova Scotia 2015 Labour Market Assessment

88 In terms of workforce, the average employer saw 1.7 people retire in the previous 5 years and expects to see an average of 4 workers retire per year over the next 5 years. The average employer expects to see an average of 4 workers retire per year over the next 5 years. 4.5 EDUCATION Employers were asked about the level of education they would expect in persons working in certain positions: trades people are expected to hold a Certificate of Qualification / Red Seal Certification (24 employers); the majority of administrative staff are expected to hold a diploma (26 employers); business professionals are expected to hold an undergraduate degree (16 employers) or more (11 employers); management should possess similar qualifications, although 13 of 36 responses said that a diploma is acceptable. Project managers should hold a diploma or a certificate of qualification (25 employers), as should estimators (28 employers). Table 4.2: Employer s expected average education level among various ICI roles n=34 Trades People Administrative Staff Business Professionals Employers generally expect tradespeople to hold a Certificate of Qualification/Red Seal Certification (51%). Management Project Managers Estimators Graduate Degree (i.e., Masters or Doctorate) Professional Designation Undergraduate Degree Certificate of Qualification/Red Seal Certification Post-Secondary Certificate/Diploma from a Trade School/Community College/Technical College Completed Grade 12 or adult high school diploma Some Grade 12 through to GED Exams Grade 9 to Grade Not sure/choose not to disclose Total Responses Nova Scotia 2015 Labour Market Assessment

89 The majority of companies provide training (28 of 35 employers) either directly (14 of 35 employers) or through a third party provider (14 of 35 employers). Organizations providing training include: Independent training organizations NSCSC CANS NSCC Nova Scotia Construction Safety Association (NSCSA) Maritime Environmental Training Institute Manufacturers / vendors Locals / unions Dalhousie University 4.6 ICI SECTORS & LOCATION OF WORK On average, companies participating in this survey are more likely to work in commercial construction (54%), followed by institutional (17%) and industrial (15%). The balance of participant work time (14%) was spent in sectors other than ICI work, including residential and municipal work. Work locations tend to be local, within 100km of the company s location (68% of the work), followed by beyond 100km but still within Nova Scotia (20% of the work). Few companies reported working elsewhere in Atlantic Canada (8%), working in Quebec or Ontario (1%), or in western Canada (3%). 4.7 WORKER MOBILITY Employers believe that the main reason their workers have moved or re-located for work is the pursuit of higher wages (22 of 33 employers) followed by interest in more hours of employment (5 of 33 employers). Other reasons include: More stability / volume of work (6%); For the experience / opportunity (6%); and Limited opportunity close to their home (3%) Employers generally believe that the main reason workers move or re-locate for work is the pursuit of higher wages (22 of 33 possible respondents or 67%). Conversely, in terms of attracting re-located workers back to Nova Scotia, the majority of employers believe that a combination of factors, including more stability / volume of work (55% or 18 of 33 employers), higher wage rates (42% or 14 of 33 employers), more hours of employment and more employment opportunity (24% or 8 of 33 employers) would serve as adequate enticement. Offering a better quality of life was selected as a draw by 21% of employers (7 of 33 employers). In recruiting employees from outside of Nova Scotia, most employers (66%) say that in-province recognition of out-of-province credentials is a barrier: 13% (4 of 32 employers) say it is never an issue, and 53% (17 of 32 employers) say it is rarely a barrier. It is sometimes an issue for 25% of the employers 56 Nova Scotia 2015 Labour Market Assessment

90 (8 of 32 employers), often a factor for 6% and always a factor for 3% of employers (2 and 1 of 32 employers, respectively). 4.8 USE OF INFORMATION TECHNOLOGY FOR INFORMATION MANAGEMENT Employers say that their employees use of ICT is most likely to be cell phones having Internet capabilities (13 of 33 employers says always and9 of 33 employers say often ). Use of a digital camera / recording device is also fairly common (15% of employers say these are sometimes used). Use of a desktop and / or mobile computer is not uncommon, but is less likely (8 of 36 of employers say their workers never use them in ICI work). Table 4.3: Employer perspective on ICT usage in ICI work n=33 Never Rarely Sometimes Often Always Desktop computer Mobile computer (tablet, laptop, netbook, wearable computer) Digital camera / recording device Cell phone with NO Internet capability Cell phone WITH Internet capability (smartphone) Among those employees that use computers and the internet for work, the following uses / activities are identified (by number of responses): 24 responses: Communicating with customers (e.g., ing); 23 responses: Research / information gathering; 20 responses: Plans review; 20 responses: Project management; 19 responses: Communicating with suppliers; 18 responses: Safety paperwork; 17 responses: Communicating with coworkers; 15 responses: Scheduling and assignments; 14 responses: Time sheets; 14 responses: Buying products (e.g., online purchases); 13 responses: Business administration (e.g., business banking); 13 responses: Travel information / arrangements; 12 responses: Education / training; 11 responses: Report writing; 9 responses: Computer-assisted design; 9 responses: Material / inventory tracking; 7 responses: Troubleshooting; 4 responses: Log books; 3 responses: Employees do not use computers and the internet for work; and 57 Nova Scotia 2015 Labour Market Assessment

91 2 responses: Other Challenging areas in use of ICT in ICI work are related to loss of / reliability of signal strength for mobile connectivity and sometimes a lack of computer support as well as computer speed / capacity. Specific ICT barriers include (by number of responses): 19 responses: Employer concerns about productivity and time on devices; 16 responses: Concerns about security of computer equipment; 16 responses: Employer concerns about safety and worker distraction; 14 responses: Concerns about security of information; 12 responses: Cost of software; 12 responses: Durability / ruggedness of available devices; 10 responses: Environmental conditions; 10 responses: Lack of use by others in the work force; 10 responses: Cost of equipment; 10 responses: Concerns about reliability; 8 responses: Maintenance of the devices / programs; 7 responses: Availability of training; 6 responses: Lack of use by ICI employers; and 3 responses: Software available Looking to the future of ICT in ICI, employers believe they will see more use of tablets, fewer paperbased systems, more 3-D drawing and increased use of Voice Over Internet Protocol (VOIP) systems (e.g., FaceTime and Skype). 4.9 PERSPECTIVE ON BECOMING A TRADESPERSON Just under half of the employers (47% or 15 of 32 employers) say that their employees came to the industry through pre-apprenticeship or pre-employment training and 44% (14 of 32 employers) are reported to have come to the industry through employment but before taking any trades-related training, 9% (3 of 32 employers) identified other pathways, including immigration to Canada, community college programs or other trades-related work). Note that almost half of the workers surveyed said they entered trades through a pre-apprenticeship or pre-employment training prior to actually working in ICI (49%). Fewer than half of employers (44% or 14 of 32 employers) would agree that it is easy to enter the ICI construction industry. The majority (56% or 18 of 32 employers) say they know where to get information about the ICI construction industry. The majority (59% or 19 of 32 employers) would recommend a career in the ICI construction trades to their children and 66% would recommend a career in the ICI construction trades to other members of their family. 58 Nova Scotia 2015 Labour Market Assessment

92 4.10 CAREER PATHS IN ICI For the majority of employers (56% or 18 of 32 employers), working in the trades was their first career choice, 8 respondents said it was a second choice, and 6 employers said it was further down their list of preferred careers. More than half of the respondents indicated they had worked as a tradesperson during their career in ICI (56%). Employers themselves came into the trades in a variety of ways. Pre-apprenticeship or pre-employment training before working in ICI was the route for 31% (10 of 32) of respondents, 16% (5 of 32 employers) held management positions/roles unrelated to construction and 13% (4/32) say they were employed before taking any trades related training (e.g., direct entry). Other entryways were identified by 41% (13 employers) and included their linkages to family businesses, working in technology and engineering fields, as well as other avenues. More than half of the respondents indicated they had worked as a tradesperson during their career in ICI (56% or 18 of 32 employers). Survey participants were asked to elaborate with respect to previous occupations. This generated a list of 102 varied occupations amongst 29 respondents. Project estimators and specific trade-related positions were cited most often; however, other positions included management and administrative roles, such as accounting and project management DEMOGRAPHIC PROFILE The following demographic characteristics pertain to the individuals who responded to the employer survey on behalf of their companies. Age: the average age of employers responding to the survey was 53 years. The oldest was 69 and the youngest was 31 years of age. Gender of respondent: o Male: 91% (29 of 32 employers) o Female: 9% (3 of 32 employers) Aboriginal Status: 1 respondent indicated they are Aboriginal; 2 preferred not to respond. Visible Minority: 2 respondents indicated they are visible minorities. Residence: The majority of respondents live in Nova Scotia, and 6% live outside Nova Scotia: o 50% Halifax; o 19% Cape Breton; o 6% Yarmouth; o 6% West Hants; o 6% Outside Nova Scotia; and o 3% Shelburne 4.12 FOLLOW-UP RESEARCH The majority of employers expressed an interest in participating in follow-up research (66%). 59 Nova Scotia 2015 Labour Market Assessment

93 4.13 KEY OBSERVATIONS: EMPLOYER SURVEY On average, companies participating in this survey were more likely to work in commercial construction (54%), followed by institutional (17%) and industrial (15%). The balance of participant work time (14%) was spent in sectors other than ICI work, including residential and municipal work. Employers responding to the survey had a relatively high average employment per entity of 44 employees. The majority of these employees were males (91%), with an average age of 40 years (from the worker survey, tradespeople s average age is 39 years). Based on the Employer Survey, on average, 85% of total employment in these organizations was comprised of tradespeople, compared with 80% across Canada (based on BuildForce Canada estimates). The organizations which reported adding staff, added an average of 4.7 employees per year and, in the next five years, the typical firm expects to see a retirement rate of 4 people per year. The level of steady work flow and a lack of construction activity were areas of concern for employers, as was the competitive pressures from labour markets elsewhere. Labour hiring pressures included wage competition from western Canada, the level of local demand for trade work, as well as issues with respect to the training that new hires receive: a concern with skill levels among the workforce. The majority of employers also felt that better employment options outside of Nova Scotia were an issue with respect to recruiting local workers (75%). Employers generally believed that the main reason workers re-locate for work is the pursuit of higher wages (67%). When asked about education levels they seek, employers indicated generally expecting tradespeople to hold a Certificate of Qualification / Red Seal Certification (51%). In addition, employers reported that younger, more educated people wanting to get into the trades, including first year apprentices, were the most desirable to recruit. This contrasts with what one employer who hired non-certified trades remarked - in those instances, there was a tendency to depend upon on-the-job training to ensure that requisite skill levels were addressed. Employers also identified other factors affecting hiring, including negative attitude / lack of motivation amongst applicants (61%) as well as applicants lacking experience (61%). Employers noted administrative jobs (because the applicants are highly skilled) and labourer and material handler positions (because the work requires less advanced training) are easiest to fill. As well, employers said that younger, more educated people wanting to get into the trades, including first year apprentices, were easy to hire. More than half of the respondents indicated they had worked as tradespersons during their careers in ICI (56%). Just under half of the employers (47%) said that their employees came to the industry through preapprenticeship or pre-employment training and 44% were reported to have come to the industry through employment before taking any trades-related training (9% identified other pathways, including immigration to Canada, related community college programs, or other trades-related work). 60 Nova Scotia 2015 Labour Market Assessment

94 Correspondingly, almost half of the workers surveyed said they entered trades through a preapprenticeship or pre-employment training prior to actually working in ICI (49%). Fewer than half of employers (44%) would agree that it is easy to enter the ICI construction industry. The majority (56%) said they knew where to get information about the ICI construction industry. The majority (59%) would recommend a career in the ICI construction trades to their children and 66% would recommend a career in the ICI construction trades to other members of their family. For the majority of employers (56%), working in the trades was their first career choice, 25% said it was a second choice, and 19% said it was further down their list of preferred careers. Employers themselves came into the trades in a variety of ways. Pre-apprenticeship or pre-employment training before working in ICI was the route for 31% of the respondents, 16% held management positions / roles unrelated to construction and 13% say they were employed before taking any trades related training (i.e., direct entry). Other entry ways were identified by 41% (13 employers) and included their linkages to family businesses, working in technology and engineering fields as well as other avenues. In terms of their own retirement, 33% of employers indicated that they plan to retire within the next 5 years (14% plan to retire in 5 to 10 years). 64% of employers noted they had a succession plan in place at their company. 61 Nova Scotia 2015 Labour Market Assessment

95 5 BUSINESS MANAGER FINDINGS The Business Manager survey was made available to unions across Nova Scotia though a variety of methods (on-line and in hard copy format) and many business managers participated in one-on-one interviews with the consulting team. The study team also made presentations to the Cape Breton Island Building and Construction Trades Council and the Mainland Nova Scotia Building and Construction Trades Council. As well, the process was augmented by several follow-up calls to various business managers. This section of the report presents the results of surveys and consultations with Nova Scotia s ICIrelated business managers. It is worth noting that, with the help of Mainland Nova Scotia Building and Construction Trades Council, the Cape Breton Island Building and Construction Trades Council and the NSCSC, information was able to be collected from all relevant trade unions in Nova Scotia. 5.1 BUSINESS MANAGER PERCEPTIONS ABOUT LABOUR SUPPLY AND DEMAND Business managers were asked about their perceptions concerning construction labour supply and demand in Nova Scotia over the next several years and factors that affect supply and demand in the 62 Nova Scotia 2015 Labour Market Assessment

96 context of hiring. Many managers stressed that the region s wages were either low relative to the work being done and the standards of living that people need to maintain, or, alternatively, they were low relative to those wages that were attracting local labour away from Nova Scotia. In general, business managers do not foresee labour supply to be an issue in the next few years. They feel they can source workers easily enough now. What is needed, however, is to be able to consistently keep employees working or else these individuals will find alternatives in other regions or sectors. Other business managers noted that, within the context of competing occupations, it was difficult to source qualified and competent workers who are interested in heavy construction work. Others commented on the current fiscal situation in Nova Scotia, highlighting a staggering provincial debt, high taxes, and a lack of construction activity. As one manager noted, Without major projects that need workers, hiring is not necessary. We need oil and gas to come to our region in the form of a pipeline(s). These will inevitably bring jobs. Another manager noted, the average age of the membership is increasing. We have a fairly high percentage of members reaching retirement age in the next 10 years or so. Many new sign-ups drop out as soon as they are laid off. For those unions that provided data on retirement flows, the rate of retirement over the past five years has been greater than what business managers are expecting over the next five years (down by about 20%). In the previous five years, for every retired worker, unions took on an average of 3.9 new members. Over the next five years unions are projecting an intake of 4.7 new members for every retired worker. Verbatim comments include: Too few long-term employment opportunities / lack of employment opportunities; We have a small labour pool compared to the other trades, over the last couple years we have maintained an even flow of new hires compared to retirees and I think the trend will continue for us. I don't see any major issues affecting that over the next several years; and Continuing commercial and residential construction offers more employment opportunities for first to second year apprentices 5.2 HIRING ISSUES Hiring issues highlighted by the business managers include the need for proper training initiatives and tradespersons ready access to such programs. However, the consideration that most affects hiring is that which is highlighted in this report s preceding section, namely, the volume of work readily available and the ability of workers to perform this work at an acceptable level of compensation. As one manager noted, Our ability to offer [a worker] a long term steady job is the issue. We don't want to [recruit] and then not keep a worker employed year round. Another noted, We have interested people, but the work outlook at the moment is slow, so we can't hire these people without a job to place them in. 63 Nova Scotia 2015 Labour Market Assessment

97 These themes echo those identified in the Worker Survey, wherein workers highlighted that their primary motivations for re-locating are higher wages and work stability. 5.3 ATTRACTING WORKERS TO ICI Ultimately, this study provides clear insight into both the challenges and opportunities associated with work in the ICI sector. There are lessons to be learned from a variety of perspectives for workers, for employers, for industry associations and for policy makers alike. Workers are clear in communicating their expectations within the sector - of competitive wage levels, availability of steady work and access to fringe benefits such as pensions and health and dental coverage. Within the survey, the ability to provide for oneself and one s family in the long-term was highlighted as an important objective for workers. Not unexpectedly, diversity of work opportunities and job security are also important considerations. Employers likewise have an important role to play. In a highly competitive labour market, particularly in light of industry demographics, being attentive to workforce planning is an important competitive advantage. Studies such as this one provide more precise insights into labour market dynamics and expected trends and can help inform and support strategic decision-making going forward. Industry associations and organizations that support those considering trades training and apprenticeship can work with policy makers and employers to support better workforce planning and help to ensure that experiential programming like that available through the Trades Exhibition Hall and Building Futures for Youth will improve outcomes for those pursuing trades training. For policy makers, there are important insights into how best to market programs, to attract and support apprentices, and to enhance participation rates by traditionally under-represented groups. Current efforts underway to harmonize the regulatory structure for the industry on an interprovincial basis are strongly supported and, in the view of key informants, need to continue. Furthermore, the study underscores some of the challenges the volatility in respect to labour supply as illustrated in the consequences arising from the decline in oil prices and the reduction of jobs available in the energy sector in the west, the reality that there are industry cycles that may mean either too much or not enough work, and the fact that the industry is often subject, like many others, to the vagaries of the marketplace and the fiscal environment. Notwithstanding the challenges, the study points to some clear opportunities to leverage this information and more precisely assess future industry requirements in a way that has potential to more effectively address both the challenges and opportunities the industry faces in the future. 64 Nova Scotia 2015 Labour Market Assessment

98 6 SUMMARY OF FINDINGS In this section we present a synthesis and summary of the information compiled from the four surveys, many stakeholder interviews, and secondary research. This section focuses on major areas of enquiry that were noted in the RFP for this undertaking, as well as those items that emerged from the research. 6.1 FACTORS AFFECTING APPRENTICESHIP In Canada, each province and territory designates to which trades apprenticeships apply and then administers its own apprenticeship programs. Nationwide, this translates into a patchwork of legislation, trades designations, programming and approaches, a scenario that complicates worker mobility, as well as such practical considerations as the tracking and management of hours worked. To illustrate, while premiers agreed to move in the direction of harmonization within the apprenticeship system generally and while, in some cases, bi-lateral agreements have been negotiated between provinces on specific issues, challenges remain. Among others, these include: a particular jurisdiction may question the equivalency of learning in another jurisdiction; 65 Nova Scotia 2015 Labour Market Assessment

99 if an employer in the jurisdiction where the apprentice is working does not sign off on hours being logged, these are difficult to validate by authorities in the apprentice s province of residence; and notwithstanding the high level agreements that may be reached around harmonization initiatives, the actual implementation process is often more challenging. For example, not all jurisdictions certify the same trades and there may be differences related to the ratio of apprentices to journeypersons in specific jurisdictions These challenges focus on the importance of the effective implementation of the measures being taken to support greater harmonization across provincial apprenticeship systems. Across Canada there exists a variety of differing roles and responsibilities with respect to the management of apprenticeship programs at various levels of government. The federal government supports apprentices and trades workers financially through a number of programs, including: The Apprenticeship Incentive Grant, The Apprenticeship Completion Grant, The Apprenticeship Job Creation Tax credit; and The Tradesperson s Tools Deduction Based on the Public Accounts for fiscal year 2011/2012, the federal government estimates that grants and tax expenditures targeted to trades amount to approximately $185 million per year. Apprentices are eligible for direct EI benefits during the classroom portion of their training ($172 million in fiscal year ). In addition, the federal government provincially administered skills development programs as part of the Labour Market Development Agreements. These agreements are presently being renegotiated with the provinces. As a further measure, under Canada s Economic Action Plan, the federal government announced several measures to support apprentices. These include: 17 Re-allocating $4 million over three years to work with provinces and territories to harmonize requirements for apprentices, as well as examining the use of practical tests as a method of assessment, in targeted skilled trades; Changing government s approach to procurement by introducing measures to support the use of apprentices in federal construction and maintenance contracts; Ensuring that funds transferred to provinces and territories through the Investment in Affordable Housing support the use of apprentices; and Nova Scotia 2015 Labour Market Assessment

100 As part of the Building Canada plan for infrastructure, encouraging provinces, territories and municipalities to support the use of apprentices in infrastructure projects receiving federal funding At the provincial/territorial level in Canada, apprenticeship programs are administered by apprenticeship authorities, which exist in every province and territory. Their role is to administer trades training and to be involved throughout the apprenticeship process. Apprentices and employer sponsors officially register with the apprenticeship authority. Throughout the apprenticeship, training provided must adhere to the standards established by the province or territory. At the end of the training, it is the provincial apprenticeship authority which administers the examination process and issues the Certificate of Qualification from the province or territory. Practical issues arise from this system as it is currently configured. For example, individual provinces have their own lists of designated trades which may be different from the lists in an adjoining province. Among other considerations, this impacts worker mobility. While all apprenticeship programs operate in a similar manner, different provinces may have different rules and regulations with respect to the manner in which their program operates to support apprentices. Some provinces use the Red Seal exam as the basis for their certification of all apprentices, in some cases with a different threshold for a passing mark for provincial vs. Red Seal certification; others use different exams. In an increasingly mobile workforce, these factors create challenges for many apprentices. At the strategic level, over the past several years, a great deal of attention has focused on apprenticeship provincially, regionally and nationally. Arising from the challenges associated with each province having a different system in place to manage and operate its apprenticeship programs, there has, not unexpectedly, also been a major effort to harmonize arrangements among provinces. The Red Seal Program is a case in point. The Red Seal Program enables apprentices to write an Interprovincial Standards Examination to obtain certification. This system operates on the principle of mutual recognition. This innovation means that apprentices, once equipped with the Red Seal designation, are able to practice their trade in any province and, as a result, enjoy greater labour mobility. In an effort to encourage certified apprentices to prepare for business ownership/management, some jurisdictions have implemented programs to provide the business training necessary to buttress apprentice technical skills and knowledge. Alberta s Blue Seal program is an example 18. Established by the Alberta Apprenticeship and Industry Training Board to encourage and recognize business training, this program provides certified Alberta journeypersons in a designated trade or occupation the opportunity to earn a Blue Seal by means of challenging programs designed to develop business skills. Programs offered include a Business Management Certificate Program and a Supervisory Development Certificate. CANS promotes the Canadian Gold Seal Program on behalf of the Canadian Construction Association (CCA). The Gold Seal Program 19 is a national certification program based on a specific candidate s Nova Scotia 2015 Labour Market Assessment

101 education, experience and his or her ability to meet rigorous standards. Gold Seal certification can be obtained in the following occupations: Project manager; Estimator; Superintendent; and Safety coordinator Provincially, Nova Scotia s Department of Education continues to expand its High School Skilled Trades. This program offers high school students the opportunity to explore the skilled trades as a career option. ICI-related courses, taught by certified journeypersons and designed by high school teachers and experienced trades educators from the NSCC (in consultation with industry representatives), are an important part of Skilled Trades 10 and Construction Trades 11. Skilled Trades is offered at 11 high schools across Nova Scotia. Other provincial support initiatives include: START; The Provincial Apprentice Progression Award; The Provincial Apprentice Completion Award; Youth Apprenticeship/WorkIt; Building Futures For Youth, and Graduate to Opportunity. Beyond these measures, for earlier stage apprentices, one of the key perceived barriers to apprentice mobility has been the problem of having their hours recognized in jurisdictions other than their home province. Alluded to in the introduction, as an important first step forward in addressing this issue, on November 26 th, 2014, the Premiers of Nova Scotia and Alberta signed an agreement that will make it easier for skilled tradespersons to move between the two provinces, thereby helping apprentices get their required training and complete their certification faster. This makes sense given the recent presence of so many Nova Scotians in Alberta s labour pool. These mutual The Agency is responsible for stewarding and operating a relevant, accessible and responsive industry-led trades training and certification system and improving access to and participation in the system by Aboriginal persons, African Nova Scotians, differently-abled persons, immigrants, women and members of underrepresented groups. NSAA Operating Charter, Section 3.1- Mandate recognition initiatives are continuing across the country. As outlined above, the implementation process associated with giving effect to these agreements is critically important. In 2012, In an effort to harmonize apprenticeship programs within the Atlantic Region, the four Atlantic provinces came together to establish the Atlantic Workforce Partnership in order to help prepare the region and its workers for significant economic opportunities on the horizon in the mining, energy and shipbuilding sectors. This work continues in an effort to harmonize the regulatory structure for apprentices across Atlantic Canada and to create greater interoperability across the region. 68 Nova Scotia 2015 Labour Market Assessment

102 Within Nova Scotia, issues surrounding apprenticeship reached the point where the government of the day, in 2012, felt it necessary to establish a Minister s Reference Group on Apprenticeship, comprised of employers, employer associations, sector councils, union representatives, NSCC and officials of the Department of LAE. One of the key recommendations advanced by the Minister s reference group was the establishment of a re-defined apprenticeship system inclusive of trade career decision making, youth exploration and bridging programs that engage historically under-represented groups, including Aboriginal peoples. Perhaps, most importantly, the work of this committee led to the establishment of the special operating agency, the NSAA. Launched on July 1, 2014, the NSAA operates under the authority of the Apprenticeship and Trades Qualifications Act and is authorized to manage the trades training and certification system in Nova Scotia. The agency is composed of the Apprenticeship Board, various committees, including Trade Advisory Committees, the staff of the agency and the Chief Executive Officer. The staff is responsible for the daily operations of the agency as well as an industry-led agency board. An important objective within its mandate is to more fully involve, engage and integrate industry in the governance structure of the new agency. This has led to the development of important advisory committees reflecting the interests and input of key stakeholders. Notably, as reflected in the adjoining text, the NSAA explicitly references its responsibility to a number of under-represented groups. The foregoing overview provides a high-level outline of just how dynamic the apprenticeship file has become over the past several years and illustrates how the Canadian system is organized across governments, including at the provincial level. Interestingly, other avenues of research undertaken during this study, including consultations with employment service providers, highlight the fact that not all trade-related students are fully aware of the apprenticeship stream. Some students thought that enrolment in a trade-related program bestows apprentice status; others were of the view that completion of trade-related training means that one automatically becomes a journeyperson. More recently, the Council of Atlantic Premiers signed an Atlantic Memorandum of Understanding Concerning Apprenticeship Mobility to make it easier for apprentices to get on the job training throughout the region. This will address what the premiers see as a challenge for businesses in Atlantic Canada which report having difficulty finding the skilled labour they require, while, at the same time, providing a means to address the interprovincial barriers impacting the mobility of Atlantic Canadian workers who need the experience to complete their certification. 6.2 LABOUR SUPPLY DEMAND CONSIDERATIONS IN ICI PROCUREMENT Interviews with private and government buyers of ICI construction services focused on their purchase decision-making criteria and consideration given to labour market supply and demand conditions when going to market. 69 Nova Scotia 2015 Labour Market Assessment

103 Private buyers indicate that the project decision-making process is governed first and foremost by market circumstances and the specific business case surrounding a given investment in ICI-related spending. Availability of labour, the level of activity within the construction sector at the time, and the availability of materials are either not considered or are considered minimally. Government buyers offered a similar perspective, although the business case decision-making criteria are framed in the public policy language. Government buyers make purchasing decisions based on policy imperatives, budgetary allocations for purchases and the schedule of the current government s direction to proceed with an investment. As with the private buyers, factors such as labour availability, availability of specific skills and related considerations are not typically a determinant of the decision making process, with the exception of what may be required of bidders in terms of any procurement processes dictating local content. Nonetheless, any such conditions must be met (or demonstrated why they cannot be met). In contrast, buyers do not modify their own purchasing decisions based on labour market conditions. For both private and public buyers of ICI construction services, labour market information is not proactively researched. Any labour market information buyers acquire typically comes to them indirectly, often from the contractors themselves, but also through media, discussions with colleagues, and other sources. Typically, however, the input is not something buyers actively seek to help inform their decision-making process. Episodically, buyers said they become aware of specific trades being in short supply. Recently, these trades include mechanical, electrical, curtain wall installation and dry walling. Both public and private buying informants noted that they treat reported local labour or occupation specific supply constraints with caution, and some speculate that reported constraints (on materials and or labour) may be motivated to help contractors contextualize schedule changes. Buyers did remark that the 2009 stimulus spending took place during a time when public procurement considered industry capacity to have efficiently and effectively absorbed the magnitude of the public sector investment. We understand that there were some industry procurement- level discussions on this topic, but that this was out of the norm, and nothing by way of monitoring or reporting frameworks on industry capacity was formalized as a result. Simply put, it seems there is Private buyers indicate that the project decision-making is driven first and foremost by market circumstances and the specific business case surrounding a given investment in ICI. Availability of labour, current construction activity and/or the availability of materials are either not considered or are considered minimally. generally no effort to coordinate, to stagger or to better match capacity in ICI purchases, in either the public or the private procurement of construction services. Buyers do, however, have some level of awareness of specific roles in ICI that, although they do not influence when to proceed, do indeed influence how contracts are awarded. Predictably, contractor selection criteria are different for different projects warehousing and basic commercial construction is much less complicated or demanding than institutional renovations. This 70 Nova Scotia 2015 Labour Market Assessment

104 aspect of the sector becomes extremely complicated when renovations and upgrades are being carried out within an operating facility. These figure among the most complex projects encountered in the ICI spectrum. In the above scenario, buyers are very focused on the track records of the bidding supervisors, managers and the schedulers. The skills and experiences of individuals assigned to these roles can be the determining factors at award, but again, this may have little or no bearing on an assessment of the sector s level of activity with respect to labour supply / demand considerations or industry capacity. Purchasers are more likely to be aware of the skills demands and limitations of schedulers, managers, supervisors, and designers. Purchasers award decisions are also more likely to be influenced by the availability of key roles within the sector and, for the most part, these roles are not related to those on the tools. Availability of skills in these areas (schedulers, managers, supervisors, and designers), have been highlighted by some buyers as being an issue for them, at least on occasion, and more likely to be a factor on more complex projects. Another nuance noted by buyers is the disparity in procurement in less populous regions of Nova Scotia, areas which, generally, attract less bidding activity among the contracting community. Labour supply may be a factor, but buyers would not know the importance of this factor amongst other factors they believe trigger less bidding activity in more rural areas (e.g., fewer companies based in these areas, a reluctance among companies based in more urban areas to run job sites at a distance, the cost of working remotely in the context of price competition, as well as the volume of work in urban areas. As a back drop to the considerations related to procurement in the ICI sector, there is the potential of using procurement to meet other industry needs. Best value procurement is an approach to procurement that looks at factors other than just price. These conditions may include dimensions of quality and expertise with similar assignments when selecting vendors or contractors. Non-financial factors may also include the role of bids in the development of capacity of the workforce / strategies for re-investment in the workforce. For example, points may be awarded for bids offering relatively more hours for apprentices, compared to other bids, with an explicit value and weighting on approaches that support skilling-up the workforce for the benefit of subsequent projects through leveraging training potential of current projects. Public sector procurement generally, with its focus on the lowest bidder, often doesn t offer the opportunity for value contracting in respect to, for Best value procurement is a procurement system that looks at factors other than just price, such as quality and expertise, when selecting vendors or contractors. Non-financial factors may include development of capacity of the workforce for subsequent projects by leveraging training potential of current projects. Public sector procurement generally, with its focus on the lowest bidder often doesn t offer the opportunity for value contracting in respect to, for example, including criteria that would support employment opportunities for apprentices. 71 Nova Scotia 2015 Labour Market Assessment

105 example, including criteria that would support employment opportunities for apprentices. However, this may be an area around which further examination might prove fruitful. In several jurisdictions, this approach has been used to support exposure to trades among underrepresented groups. 6.3 LABOUR MOBILITY Labour mobility and the intentions of the work force in this regard is an important issue for the ICI sector. More than half (51%) of students surveyed indicated they plan to move or re-locate for work in the near future (within one to three years). Of these students, most (44%) are uncertain as to where they will ultimately re-locate, but only 10% said they would be relocating within Nova Scotia. The remainder intend to leave the province for places such as Alberta, British Columbia, and elsewhere in Canada, as well as Europe. More than half of all workers (58%) indicated they are willing to commute / travel beyond Atlantic Canada to other Canadian provinces in order to seek work. Among current ICI workers planning to relocate, Alberta was cited most often as an employment destination. 19% said they would commute; 17% are not yet sure where to go. Looking forward, one third of all current ICI works surveyed indicated they plan to move from Nova Scotia for work within the next one to three years. Reasons to move among current workers were varied and included personal reasons (27%) and a better quality of life (21%). Among students, migration is motived by higher wages (26%), a mindset that there are limited opportunities close to home (19%) and that migrating yields more stability / a greater volume of work (16%). Employer views of workers motivations to move aligns more with the reasons students mentioned than the array of reasons mentioned by workers. Employers believe that the main reason their workers have moved or re-located for work is, overwhelmingly, the pursuit of higher wages (67%) followed by interest in more hours of employment (15%). Other reasons include stability / volume of work (6%), the experience / opportunity (6%) and a view that there are limited opportunities close to home (3%). Ultimately, hours, stability, and wager rates are all derivatives of earnings. When asked what would bring workers back to NS, employers think the main draw would be stability of work (55%), followed by higher wage rates (42%) and both more hours of employment and more employment opportunity (24%). Offering a better quality of life was selected as a draw by 21% of employers the same percentage of workers selected quality of life as an incentive for moving away. Comments made by the business managers are, for the most part, aligned with the employers view: that the main drivers of mobility are competitive wages and the earnings potential offered in other jurisdictions. Workforce mobility has been a constant in Nova Scotia s ICI sector and, as one worker noted, the industry here could do more to facilitate worker mobility so that workers can maintain their incomes and households, but also maintain their attachment to this area. So, rather than create movers (who relocate on a longer-term or permanent basis), the industry should facilitate commuters following work elsewhere and, as demand dictates, also being available for work here. 72 Nova Scotia 2015 Labour Market Assessment

106 In the context of the national ICI sector, the above suggestions do make sense. The NS ICI labour force is relatively small compared to Canada-wide ICI spending and, in particular, is also small relative to markets in Alberta, Ontario, and British Columbia. Supporting the fluidity and mobility of NS-based workers would have the advantage of keeping workers in the sector at a decent income, while maintaining their connection to, and potential availability within, the Nova Scotia region when demand dictates. 6.4 RETIREMENT The APEC Report Card - The Aging Workforce in Atlantic Canada - warns that the relatively large cohort of baby boomers across Atlantic Canada will continue to impact the age distribution of labour market data for the next years and the report predicts that employers will be challenged in meeting the their labour market demands. The APEC Report reinforces the point that there has been a recent trend toward workers remaining in the workforce longer than their predecessors. Notwithstanding, the report concludes that there will be an inevitable limit on workers extended stays in the labour market and this can be expected to manifest itself over the next few years. In this current study, 76% of the workers completing the survey identify their expected retirement date as more than 10 years and only 12% plan to retire within 5 to 10 years. The 2007 study suggested retirement was closer for more workers. When asked about retirement in 2007, only 46% said their retirement was more than 10 years away and, at the time, 26% planned to retire within the coming 5 to 10 years. Worker comments around their retirement plans in both 2007 and in this current study reflect uncertainty over their planned retirement date and impacts of financial realities, age, health, and other factors impacting retirement decision. This finding is consistent with the trend toward longer labour force participation, a factor that many suspect as having been influenced by the lingering effects of the 2008 global financial crisis and the associated erosion of savings. For those unions that provided data on retirement flows, the rate of retirement over the past five years has been greater than what business managers are expecting over the next five years (down by about 20%). In the previous five years, for every retired worker, unions took on an average of 3.9 new members. Over the next five years unions are projecting an intake of 4.7 new members for every retired worker. In the previous five years, for every retired worker, unions took on an average of 3.9 workers. Over the next five years unions are projecting an intake of 4.7 new members for every retired member. 6.5 HIRING PRACTICES Both employers and business managers offered perspectives on issues relating to hiring new labour. Although business managers did note challenges with respect to obtaining trades training at an ICI level, they, nonetheless, feel that the major obstacle to hiring lies in the unavailability of a steady volume of 73 Nova Scotia 2015 Labour Market Assessment

107 available work through which new entrants can, within a reasonable timeframe, accumulate the hours necessary to proceed through apprenticeship. As noted earlier, one business manager indicated a reluctance to recruit new workers because his company cannot keep them employed. The problem, it seems, is more pronounced in rural Nova Scotia and in Cape Breton than in Halifax. Note, also, workers emphasized that a primary motivation for relocating for work is the lack of employment stability in Nova Scotia. Among other interview findings, which included business managers, employment service providers, and some employers, the need to improve job matching was a prominent theme. Some suggested the need for a stronger focus on the use of career aptitude tests to help refine career choice and to also better manage training investment decisions. In this context, several interview participants remarked that approaches and initiatives which expose individuals to trades training as being helpful in individual career decision making. Among those mentioned were CANS Building Future for Youth, the NSCSC s Trades Exhibition Hall, and NS Department of Education s Skilled Trades 10 and Construction Trades 11. With respect to the accumulation of apprenticeship applicable hours, the lingering concern around harmonization efforts between provinces to address this issue was raised during this study. This is an issue that is being aggressively addressed at the Atlantic Region level and nationally. Led by provincial and territorial labour market ministers, there is a collaborative undertaking across the provinces to harmonize regulatory structures and to create a more integrated structure that will be more userfriendly for apprentices, allowing them to complete their training without interruption regardless of jurisdiction. In fact, the existing Red Seal Certification is an excellent example of this type of harmonization and mutual recognition regulatory feature. 6.6 EXPECTATION OF ICI EMPLOYMENT AND EARNINGS The average ICI worker actually worked 63% of the past 24 months in ICI. The rest of the time was spent working in other sectors or being unemployed. At the time of the survey, and among all trades people, 74% were employed in their main trade, 4% were employed, but not in their main trade, 5% were employed in another sector, 16% were unemployed and 2% were retired. It seems ICI students understand this characteristic of the sector. To illustrate, only about 34% of ICIrelated students expect to work 2,000 or more hours per year; the remainder expect to be working less than a full year. As well, the majority of students (72%) expect to secure employment within a two month period of completing their studies. The survey on current worker wages demonstrate that 20% earn less than $20 per hour, 32% earn more than $20 but less than $30 per hour, 30% earn more than $30 but less than $40 per hour, 14% earn more than $40 per hour, and 4% chose not to provide any information on their remuneration. Student expectation of earnings is well-aligned. Looking ten years out of school (and / or as journeyperson) 41% of students expect they will be earning more than $30 per hour, 23% estimate between $25 and $30 per hour, 14% expect $20 to $25 per hour and 9% expect to be earning less than $20 per hour. 74 Nova Scotia 2015 Labour Market Assessment

108 6.7 ROLE OF ORIENTATION, CAREER DEMONSTRATIONS, AND INDUSTRY PARTICIPATION OPPORTUNITIES In a competitive environment and in the interest of proactively managing labour supply for the ICI sector, the development of the Trades Exhibition Hall by the NSCSC has been a timely and very valuable undertaking that can be marketed to both the school system and employment service providers. Participants at NSCSC Trades Exhibition Hall events can visit interactive booths that showcase individual trades and management occupations. For example, youth that are interested in the bricklaying profession would be able to speak one-on-one with a journeyperson bricklayer and would be able to engage hands-on in a bricklaying booth s demonstration of laying a course of bricks. By providing participants with the opportunity to learn from experienced tradespeople, to engage in hands-on demonstrations and to have career- related questions answered, the Trades Exhibition Hall showcases the unique aspects of various construction-related occupations. Already noted, Building Futures for Youth has been has been highlighted as a leading practice for industry. Developed as a partnership between CANS, the NS Department of Education English Program Services, the NSAA, the NSCC, and local school boards, students are offered CANS industry orientation and safety training at NSCC campuses and 5-7 weeks of paid employment as a registered construction trades pre-apprentice. Successful completion of the program can result in up to 3 co-op credits, banked apprenticeship hours and eligibility for one of three CANS Building Futures for Youth / NSCC scholarships. Both the Trades Exhibition Hall and Building Futures for Youth are important initiatives, each providing excellent marketing tools to proactively address labour supply issues. As earlier noted, the Trades Exhibition Hall and Building Futures for Youth provide an opportunity for potential ICI career participants to gain exposure to trades at an early point in their decision making process which will, over the longer term, lead to better career path decision making. 6.8 INPUT FROM SELECTED EMPLOYMENT SERVICE ORGANIZATIONS A broad range of employment service organizations provide employment counseling and employment support to Nova Scotia's construction sector. Throughout the ICI Labour Market Assessment study, a series of stakeholder interviews were conducted with resource organizations. Participating organizations included: African NS Affairs Black Business Initiative Immigrant Services Association of Nova Scotia (ISANS) Jobs Junction reachability Skills Canada - Nova Scotia Techsploration The Halifax Regional School Board Women Unlimited 75 Nova Scotia 2015 Labour Market Assessment

109 Some of the service offerings are generic while other organizational initiatives seek to secure employment and / or apprenticeship opportunities for specific segments of the labour force, including women, visible minorities, immigrants, Aboriginal persons and others. Cumulative findings based on these consultations include: An acknowledgement among stakeholders that more streamlined information channels would be beneficial and serve to guide the direction that organizations take with respect to trades counseling for special interest groups. Interest in the sector remains high in target groups that would traditionally consider the trades as a career option (male 17-25). However, through other targeted initiatives such as support for women in non-traditional trades and for persons with disabilities the sector is experiencing a recruitment increase from a more varied cross section of workers. This stems from outreach and targeted campaigns to change attitudes toward construction as a career option. Concurrently, these initiatives serve to expose employers to a new source of labour from which potential new employees can be drawn. The challenge inherent in fostering interest among such groups is within the context of the underemployment reported by workers and the lack of ICI activity reported by some firms. The activity in the Halifax market may present more of an opportunity to engage non-traditional labour pools than is evident in rural areas of Nova Scotia where ICI activity may be more limited. The challenges that people in receipt of Income Assistance have in gaining access to funding support for training and certification in the trades have the impact of limiting entry for many clients / client groups. Additionally, there are other funding restrictions that pose barriers to specific groups / individuals interested in applying to Skills Development and the NS Department of Community Services Educate to Work programs. 20 Although a desire for more targeted information was identified by many stakeholder groups, there is also an acknowledgement, awareness and appreciation of the NSCSC as a key resource in generating up-to-date trades information. However, many organizations indicated unsubstantiated and potentially less reliable information sources for current sector employment information, an example being media reports. This scenario needs to be addressed, perhaps, most effectively by means of more evidence-based qualitative and qualitative information. Stakeholder groups also reported an awareness of labour supply/demand challenges manifested by over-subscribed training programs that have the unintended impact of flooding the labour market. In this regard, stakeholders most frequently cited electrician programs as an example. At the policy level, there is a growing awareness of the fundamental importance of linking labour supply and demand with efforts being made to enshrine these provisions within federal / provincial programming and associated fiscal arrangements. 20 The program (formerly called the Equity Opportunities Program or TEOP) allows people who receive Income Assistance to take core programs at the NSCC. The government pays for tuition and books. See: 76 Nova Scotia 2015 Labour Market Assessment

110 The importance of a direct link from employment resource organizations to construction industry employers also emerged as a leading practice that needs to be more frequently emulated. Examples identified by stakeholders include prominent analogues such as the Dexter Institute and the on-site visit programs with Black and MacDonald. These links stand as proactive and effective methods of fostering a deeper understanding of the construction labour market and of promoting the sector as a career option. Pre-screening, case management and follow-up care or counseling were identified as prevalent features of program support for clients; however, there is a lack of information on specific outcomes and statistics relating to the numbers of people selecting training, becoming certified and entering the construction sector. At the entry level, a variety of more experientially-oriented programs and activities were identified as having an important impact for new entrants. High school apprenticeship programs and in-class presentations and workshops offered by Techsploration, by Skills Canada - Nova Scotia, O2, and Building Futures for Youth are fostering interest in trades among youth. Among other initiatives, Career Days at NSCC, the above noted and widely celebrated NSCSC Trades Exhibition Hall, and Carpenter Millwright College were all cited as a means to expose a high number of students (15-18 years and, in other cases, 30 years and under) to construction as a viable career option. Halifax Regional School Board Career Fairs, hosted in alternate years by the Nova Scotia Home Builders Fair, TNT Expo and the NS Skills Competition and Technology Showcase are also valuable public awareness tools. Exposure to these programs are fundamental to forging a more effective school-to- work transition program and can be instrumental in lowering the average age of apprentices. Discussions with stakeholders and a review of the national literature identify the need for more usable and effective LMI. This is an important issue which the Department of Labour and Advanced Education is working to address. More usable LMI, including up-to-date information and data on job opportunities in the sector, both regionally and nationally, would immeasurably assist employment service providers and sharpen their counselling and advisory services. Specifically, a central clearing house and / or collaboration with a designated industry partner(s) such as the NSCSC would ensure accurate and validated LMI that would be more useful for the industry at large, and particularly to those whose career aspirations are focused on the construction sector. Continuing on the matter of the importance of having up-to-date information, the industry, through the NSCSC, may wish to more frequently update its analysis of labour supply and demand, as undertaken in this study. The imperative to have this information in a portable (electronic) and periodically updated (bi-annually at a minimum) format was mentioned by several of the study s stakeholder groups. Measurement for successful training and employment outcomes in the construction sector is varied within the stakeholder groups interviewed. Registration and applications for training programs and workshops and graduate volumes are a natural gauge for industry, however, follow up on trainees is inconsistent. A mechanism for follow-up (survey or general feedback portal) hosted potentially by an industry hub that could co-ordinate the information, would be viewed favourably. 77 Nova Scotia 2015 Labour Market Assessment

111 In completing this study, it is important to note that the Department of LAE is examining how best to modify its province-wide career and employment services delivery structure in order to respond to a changing labour market. Transitioning to a new, more integrated model of career services has, in part, been enabled by the opportunity presented by the devolution of federally-supported career and employment support services to the province. In July 2009, the Government of Canada (Service Canada) transferred responsibility for the delivery of its labour market programs and services to the Province of Nova Scotia, through the Labour Market Development Agreement. These services became the responsibility of Employment Nova Scotia (ENS). This was in addition to the network of provincial services already funded by the Nova Scotia government through ENS. At the same time that the devolution of federal services to the province was taking place, the Department was being called upon to address a range of other emerging challenges perceived skill shortages, the need to better align labour supply and demand, the need to ensure training is more relevant to labour market requirements and challenges within the apprenticeship system. While this service transformation initiative is a work in progress at the time of the writing of this report, it would appear that a primary focus of this effort is aimed at providing a more integrated service delivery system. It will be important for the NSCSC to monitor these developments on behalf of the sector and to offer its advice and guidance where relevant. 6.9 LABOUR SUPPLY AND DEMAND GAP The gap between labour supply and demand is topical and an issue that has been debated since the first time the NSCSC undertook a labour market study in This topic was re-visited in the 2007 ICI labour market study. In both cases, as it is today, there continues to be a divergence of opinion some contend there are gaps in supply while others argue existence of surplus labour. Typically, employers will tend to highlight challenges in sourcing labour, especially with respect to specific occupations. As noted earlier, concerns include the experience and skill levels of new entrants, as well as the availability of more experienced workers for whom employers must compete with other employment opportunities, notably, including those in other jurisdictions. Business managers will highlight the international connectedness of their network and their resources in order to draw workers to this region as demand dictates. However, managers also have good data on available workers, skill levels and employment levels and point to unemployment (currently at 19%) as evidence that there is no shortage of workers. In this study, workers themselves report, on average, that approximately 10% of their time over the previous 24 months was spent unemployed and that, on average, only about 63% of their working time was spent in ICI construction. While the survey shows that there were clearly some who worked more than they wanted over this period, there were a number who were both underemployed in general and who, for whatever reason, worked in sectors other than ICI to augment their incomes during the previous 24 months. This is an issue around which both industry stakeholders and policy makers may wish to conduct further examination as to the causal factors and any solutions that might be possible. 78 Nova Scotia 2015 Labour Market Assessment

112 As in previous ICI LMA projects, the labour supply / demand gap has been more specifically related to available skills for a particular project, to the availability of a sufficient supply of workers (units), and to specific regions. The 2007 LMA, for example, noted that labour supply was not typically perceived as an issue in Cape Breton where ICI unemployment tends to be higher and where the work force, at least anecdotally, seems to be more mobile or mobile more frequently relative to the pool of ICI labour based near Halifax. The clear message from employers is that access to labour (in Halifax) is an issue. The message from 34% (46% in the 2007 LMA) of the workforce is that workers want more work. In 2007, research suggested that the lack of construction-related work resulted in a level of outmigration that had the potential to destabilize the remaining construction industry. This theme emerged again in the current research, with business managers in particular, highlighting the challenge of the lack of work for existing journeymen and the reluctance to encourage new entrants to join the ICI industry when there is not sufficient work to ensure that entrants have an opportunity to find employment, let alone complete their apprenticeship streams. More information on the flows of workers in and out of the industry is needed to determine if the above is actually the case, but if it is being manifested, it would show in an increasing average among Cape Bretonbased labour and a decreasing number of new entrants and / or a decreasing trend in apprenticeship There are no secondary data sources that measure either the labour force or employment estimates for the ICI sector in isolation of other construction sectors, at either the national or provincial level. registration. We know from the most recent survey that the average age of Cape Breton-based tradespeople is 41 years of age, compared to 37 years of age in Halifax Summary of Data Analysis / State of the Sector In an effort to estimate the size of the ICI labour force and workforce, we referenced off-the-shelf data from the Labour Force Survey (LFS) 21 and data assembled by BuildForce Canada, made available through the NSCSC. There are no secondary data sources that measure either the labour force or employment estimates for the ICI sector in isolation of other construction sectors, at either the national or provincial level. Labour Force Survey - Canada Figure 6.11: Construction Labour Force Survey Estimate from CANSIM provides a labour force survey estimate of all construction for 2000 to 2014 for both sexes, 15 years and over, for Nova Scotia. This places 2014 construction labour force at 39,000 and employment at 34,000 for the same year. 21 The Labour Force Survey is a monthly survey by Statistics Canada. See: 79 Nova Scotia 2015 Labour Market Assessment

113 (x 1,000) Group ATN Consulting Inc. 45 Construction Labour Force and Employment, Labour Force Survey (LFS) Estimate Employment (x 1,000) Labour force (x 1,000) Figure 6.11: Construction Labour Force Survey Estimate BuildForce Canada Data Equivalent data from BuildForce Canada has the total construction labour force at 35,638. In both cases (CANSIM and BuildForce Canada estimates), the labour force estimates include all construction types: ICI, residential, and non-residential construction. BuildForce Canada forecasts the total construction labour force to Employment (i.e., those that are working) estimates from BuildForce Canada is 31,262 for This estimate includes management and related occupations which BuildForce Canada estimates to be 20% of the labour force - approximately 6,252 - and the balance of 25,009 work in trades-specific related occupations. GATN s Assessment of Labour Force Data Although BuildForce Canada does not disentangle ICI construction from the other forms of construction, their data is provided at the occupational level for employment estimates. With these, GATN developed categorizations of occupations that are most closely associated with ICI trades, ICI management, ICI administrative roles, and those occupations that are not related to the ICI construction sector. These methods of categorization of occupations allowed us to use BuildForce Canada data to develop ICI labour force estimates. Figure 6.12: Employment and Labour Force: Non-Residential - Nova Scotia (BuildForce Canada) provides GATN s estimate of current and forecasted employment and labour force participation based on BuildForce Canada data. This shows the 2014 estimate for all ICI employment at 11, Nova Scotia 2015 Labour Market Assessment

114 Employment Group ATN Consulting Inc. Employment Construction: Non-Residential - All Trades and Occupations - Nova Scotia: BuildForce Canada, 2012 to ,000 12,000 11,748 11,190 11,408 11,562 11,589 11,793 12,173 12,438 10,000 8,000 9,455 6,350 7,987 7,576 7,733 7,870 7,930 8,101 8,364 8,550 6,000 4,000 3,105 3,761 3,614 3,675 3,692 3,659 3,692 3,809 3,888 2, Year Selected ICI Trades Occupations Total Employment Construction (ICI) Management & Administrative Occupations Figure 6.12: Employment and Labour Force: Non-Residential - Nova Scotia (BuildForce Canada) Figure 6.13: NS Construction BuildForce Canada Data, Employment Estimates 2014 (below) shows GATN s categorizations of BuildForce Canada s data over the categories of ICI employment by trade and management and administration. By this method, we estimate roughly 11,190 workers by trade area, including 3,614 workers in estimator roles, management roles, supervisor roles, and other trades related occupations roles (i.e., office and administrative roles). 22 The figure shows that, of the 11,190 ICI occupations in 2014: 1,755 are in management roles (estimators, managers, and supervisors), 1,859 are in Other trades and occupations roles (which BuildForce Canada defines to include sales, offices staff, engineers, and other roles that work for construction companies but are not involved in on-site construction activity), and 7,576 are in specific trades-related occupations in Nova Scotia (i.e., about 32% of employment) Incorporating the findings from the survey allows another avenue to estimate the ICI workforce. At the time of this writing, 19% of the unionized sector labour force is unemployed. In consideration of this, the labour force estimate derived from BuildForce Canada data for all ICI workers would be in the vicinity of 13,814 workers - meaning, of the 13,814 in the ICI labour force, 11,190 were employed in According to Service Canada and the NOCs codes, Unit Group 7383 other trades related occupations roles includes occupations in administrative support services as well as occupations that work with tools in a variety of roles ( 81 Nova Scotia 2015 Labour Market Assessment

115 Trades Management & Admin Group ATN Consulting Inc. NS Construction BuildForce Canada Data, Employment Estimates 2014 Other trades and occupations 1,859 Contractors and supervisors 1,098 Construction Managers 520 Construction Estimators 137 Welders and related machine operators 288 Trades helpers and labourers 1,251 Tilesetters 6 Steamfitters, pipefitters and sprinkler system installers 404 Sheet metal workers 165 Roofers and shinglers 50 Refrigeration and air conditioning mechanics 173 Plumbers 479 Plasterers, drywall installers and finishers, and lathers Painters and decorators except interior decorators Ironworkers and structural metal fabricators and fitters Insulators Industrial instrument technicians and mechanics - Glaziers Gasfitters Floor covering installers Elevator constructors and mechanics Electricians, including industrial and power systems 1,426 Drillers and blasters 22 Crane Operators Construction millwrights and industrial mechanics Concrete Finishers 34 Carpenters 1,493 Bricklayers 134 Boilermakers ,000 1,500 2,000 Figure 6.13: NS Construction BuildForce Canada Data, Employment Estimates Nova Scotia 2015 Labour Market Assessment

116 Bridging the Survey Findings From the interviews and surveys, the study identified approximately 10,500 workers within the unionized labour force (derived from estimates collected during interviews). 23 From the Employer Survey, it was noted that 85% of the workforce are in occupations that are in trades and 15% are in management and administrative roles. In comparison to the 20% rule of thumb from BuildForce Canada, the lower rate of 15% of ICI occupations in management roles may be reflective of SMEs that characterize the industry within Nova Scotia. Smaller companies may require a leaner approach to management and / or more demand on tradespeople to act both in management roles as well as trades-related roles. Adding a factor of 15% for administration and management roles (based on the Employer Survey), the ICI workforce involved with the unionized sector based on survey and interview data would be in the vicinity of 12,353. According to Merit Nova Scotia, open shops employment fluctuates between 1,600 and 2,000 and is in the vicinity of 2,000 during peak seasons. These numbers include management and administrative roles as well. At peak season, using a factor of 15% for administration and management leaves a net of 1,700 trades specific occupations. If the same unemployment rate applies, the trades-related labour force among open shops would be in the vicinity of 2,099. The combined labour force in both the union and open shops is in the vicinity of 14,452. From the survey and interview research, employment of 11,706 would include 9,950 trades-related occupations and 1,756 management and administrative positions. BuildForce Canada Survey Findings Estimated Labour Force (all roles) 13,814 14,452 Estimated ICI Employment (all roles) 11,190 11,706 Management roles 3,614 1,756* Trades-related roles 7,576 9,950 Full-time trades positions in ICI 7,576** 6,269 * Management roles includes: Managers, Estimators, Sales/Business Development, Supervisors/Foremen, Project Managers, Design/Planning, Engineering, and Administration. ** BuildForce estimates are understood to be presented as full-time equivalent positions (i.e., employed for 2,000 hours per year). 23 The 15% administration and management includes the following roles: Managers, Estimators, Sales/Business Development, Supervisors/Foremen, Project Managers, Design/Planning Engineering, and Administration 83 Nova Scotia 2015 Labour Market Assessment

117 As noted earlier workers were asked how much ICI work they performed within the previous 24 months. Of the 606 workers who responded to this question, on average: 15.0 months were spent working in ICI, 3.5 months were devoted to residential construction, 0.4 months were spent doing non-residential construction (e.g., road building), 1.5 months were devoted to non-construction related work, 2.4 months were spent being unemployed, and 1.1 months in absences and in other activities (none of the above) Overall, 63% of tradespeople work time was spent in ICI. Based on this, and in consideration of the trades worker employment estimates derived from the study, total hours for the trades-related workforce in 2014 is estimated to be in the vicinity of 12.5 million hours of employment. There are some important caveats to the analysis conducted above. In reviewing all source data, as well as the commentary made during the surveys and interviews conducted as part of this study, it is difficult to delineate ICI employment along the lines of open shop and unionized employment situations. For example, it is reasonable to expect that there are workers who are not affiliated with Merit or unionized labour anecdotally estimated at as many as 500 to 1,000 workers. Regardless, with 34% of the workers surveyed in this study reporting having worked less than they desired during the past 24 months, and the union data reflecting a 19% rate of unemployment, province-wide, it is difficult to support an across-the-board assertion of a labour supply shortage. A look at trends in construction spending demonstrates how labour supply may not, in general, be an issue. Nonetheless, there are periods (and perhaps geographic regions within the province) where both labour shortage and / or decreasing numbers of more skilled tradespeople can become an issue at localized levels. Figure 6.14: NS Non-residential investment Statistics Canada, Table , Figure 6.15: Halifax Nonresidential investment Statistics Canada, Table and Figure 6.16: Halifax Non-residential investment Statistics Canada, Table below provide the trends in investment in non-residential construction from 1997 to 2014 for Nova Scotia and for Halifax, for industrial, commercial, and institutional and governmental spending. Of the categories, commercial is the most important in terms of total spending, ranging between 53% (2012) and almost 70% of total non-residential investment in 2013, dropping back to just over 60% of total non-residential investment in Institutional and governmental spending ranges between 15% (1997) and 38% (2011). It represented 24% of total nonresidential investment in Industrial spending ranges from between 31% in 1997 and its lowest point at 8% in 2013, before reaching 15% in Nova Scotia 2015 Labour Market Assessment

118 Investment in non-residential building construction, by type of building, NS, annual (dollars x 1,000) $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ NS Total non-residential NS Industrial NS Commercial NS Institutional and governmental Figure 6.14: NS Non-residential investment Statistics Canada, Table Statistics Canada. Table Investment in non-residential building construction, by type of building, province and census metropolitan area (CMA), annual (dollars), CANSIM (database). (accessed: ) 85 Nova Scotia 2015 Labour Market Assessment

119 Investment in non-residential building construction, by type of building, Halifax, annual (dollars x 1,000) $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ HFX Total non-residential HFX Commercial HFX Industrial HFX Institutional and governmental Figure 6.15: Halifax Non-residential investment Statistics Canada, Table According to the Nova Scotia Department of Finance: Non-residential investments are assumed to have declined slightly in 2014 as Halifax commercial construction projects declined from the 2013 peak. However, major projects are expected to drive growth in 2015 up to 7.5 per cent, with further growth of 1.0 per cent in Non-residential building construction was down for a third consecutive year in 2014, declining by 9.6 per cent. Commercial buildings in Halifax area were down by 25.4 per cent. Industrial buildings were up in Halifax (+85.4%) and outside of Halifax (+34.4%). Overall Halifax buildings construction was down 16.6 per cent in 2014 while outside Halifax construction was up 4.6 per cent. 27 This highlights the differences between Halifax and the remainder of the province overall, illustrating the percentage of non-residential investment in Halifax as a share of the total non-residential investment province-wide. 25 Ibid 26 (accessed: ) 27 Ibid 86 Nova Scotia 2015 Labour Market Assessment

120 Halifax Share of NS Investment in non-residential building construction, by type of building 80% 70% 60% R² = % 40% 30% 20% 10% 0% HFX Total non-residential HFX Commercial Linear (HFX Total non-residential) HFX Industrial HFX Institutional and governmental Figure 6.16: Halifax Non-residential investment Statistics Canada, Table Halifax is accumulating an increasing share of total non-residential investment over time, with more variation in the distribution of institutional / governmental and industrial investment, relative to commercial. This is reflective of what one may expect, with institutional / governmental and industrial investment more likely to be project based work, influenced by government policy and procurement, as well as by investment cycles within industry, than is evident in commercial investment, the latter being driven more by market conditions for investment. This may also explain (in part) why some Halifax companies report being busy and unable to find skilled workers. This is in contrast to interviews that say companies based in less urban areas, where spending is relatively less overall and is more likely to be influenced by volatility in institutional / governmental and industrial investment, were less busy during the study period, although this result was not evident in the survey data gathered for this study. Generalizing, more urban based employers were more concerned with availability of workers than the work, while employers in less urban areas were more concerned with the volume of work than the availability of workers Spending Analysis Several interview participants and survey participants highlighted the role of the NS ICI labour force in a national context. Figure 6.17: Building permits, by type of structure, Nova Scotia, (CANSIM: ) provides CANSIM data on ICI spending. 28 Statistics Canada. Table Investment in non-residential building construction, by type of building, province and census metropolitan area (CMA), annual (dollars), CANSIM (database). (accessed: ) 87 Nova Scotia 2015 Labour Market Assessment

121 (x 1,000) Group ATN Consulting Inc. Building permits, by type of structure, Nova Scotia, (Cansim: ) $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Non-residential (x 1,000) Industrial (x 1,000) Commercial (x 1,000) Institutional and governmental (x 1,000) Figure 6.17: Building permits, by type of structure, Nova Scotia, (CANSIM: ) Viewed nationally, this is a small share of the total ICI spending and small in relation to Ontario, Alberta, Quebec, and British Columbia, in particular. Furthermore, Nova Scotia spending growth rates have been relatively flat compared to other provinces, with the exception of the post 2008 stimulus spending. The value of building permits have varied widely in Nova Scotia over recent years, with a sharp increase in 2008 to 2013, followed by a decline in Furthermore, the surveys within this study show that the variability of the industry is one feature that those who leave Nova Scotia highlight as a contributing factor in their levels of mobility. The 2007 Labour Market Assessment characterized the balancing effect of out-migration and / or interprovincial commuting as a mechanism through which those who cannot find work locally can remain in their trade and earn a living while concurrently maintaining some attachment to the region. Recent trends in Alberta s pace of development and current slowdown highlight the vulnerability of this phenomenon. Nova Scotia and the Atlantic Region stand at an interesting point in history. On the eve of the decadeslong ship-building program, it is difficult to know specifically what its impact will be on labour market dynamics. Other large prospective projects the offshore, an LNG terminal, port development, among others may create incentives for workers to return to Nova Scotia to take up opportunities here. Alternatively, depending on how some of these projects ultimately play out, and depending on the 88 Nova Scotia 2015 Labour Market Assessment

122 availability of jobs, workers may be incentivized pursue avenues other than ICI construction and, in so doing upset the balance in terms of labour supply and demand within the ICI sector. The current situation with the collapse in the price of oil, referenced above, is another unknown and consequently a further uncertainty, the outcome of which is very difficult to predict at this time. It is so early in this current global price cycle that it is not entirely clear how this will play out for the Canadian economy and the producing provinces and what its overall impact will be. The length of the downturn is difficult to gauge and its ultimate impact on both the national economy and the Western economy is equally difficult to divine, factors that adds further uncertainty in respect to potential labour supply/demand dynamics. Within this study as well is the echo of that durable tautology, often expressed as Does the region have a skill shortage problem or a wage-gap problem? Taken to its logical extent, do workers leave the province because there is no work or because they need / want higher wages and more diversity of opportunity? Attempting to answer these questions would be purely speculative. However, what this study serves to unequivocally underscore is the fact that the broad economic conditions that influence issues like labour supply and demand changed significantly over the year-long period in which the study was being undertaken. This dynamism underscores the earlier cited point that the ICI industry needs to be assessing these issues more frequently and in real time so as to be able to respond to changes as they evolve. Too few workers in the future will negatively impact the economics of these large projects; a sustained surplus of workers will raise the level of unemployment and incent workers to pursue other career options. Maintenance of that balance is important and to do so, requires credible and reliable labour market intelligence on an ongoing basis. As one worker postulated, perhaps it is a role of the industry here to do more to facilitate the fluidity of the commuter segment of this sector. If this became part of the strategy, perhaps it would help ensure that the mobile workforce remained as commuters rather than become permanent moves Capital Construction The following figure provides a summary of capital expenditures for Nova Scotia in annual dollars, from 1991 to Nova Scotia 2015 Labour Market Assessment

123 Capital expenditures for Nova Scotia, annual (dollars x 1,000,000) 6,000 5,000 4,000 3,000 2,000 1,000 - Figure 6.18: Capital and repair expenditures, by sector for Nova Scotia, annual (dollars x 1,000,000) (CANSIM: ) Most recently, total capital expenditures are $4.84 billion (2014), down slightly from $4.86 billion in SUMMARY: THE STATE OF ICI LABOUR SUPPLY AND DEMAND Information from the surveys, and information from business managers and open shops yields an estimated level of employment of 11,706 from a labour force that may be estimated to be in the vicinity of 14,452 tradespersons and other ICI workers (managers, administrators, and others in supporting roles). A recurring theme throughout this study and one of the key recommendations noted in Section 6 is that more research needs to be done to better pinpoint the labour force supply and demand at the occupational level and that LMI relating to this sector needs to be collected and examined more frequently. Regardless, 34% of the workers surveyed in this study reported having worked less than they desired during the past 24 months, and union-supplied data reflects a province-wide 19% unemployment rate. Under these circumstances, it is difficult to support an across-the-board assertion of a labour supply shortage. Nevertheless, while some employers are seeking more work, some employers continue to report having more work to do than they have workers. It is within this context that business managers report high unemployment and a frustration at what they perceive as a lack of construction activity in a province with considerable aging infrastructure and new infrastructure needs. 90 Nova Scotia 2015 Labour Market Assessment

124 Among union membership, we estimate at least 10% of current members hold travel cards or are otherwise working outside of Nova Scotia: this capacity, if attracted back to Nova Scotia, means another 1,000 or so workers. This would not include members who have relocated. In terms of new entrants, business managers have highlighted challenges in retention of both current workers, but especially new members who become frustrated with their first cycle of layoff following work. Many trades-related students themselves have also said it is their expectation that they will not achieve 2,000 of hours of employment, and a large share (46%) says it is their intention to leave Nova Scotia to find work. In terms of work flows (retirement and new entrants), BuildForce Canada forecast data provided to the NSCSC reflects a fairly steady level of ICI employment over the next several years, adding slightly more than 1,000 jobs from 2014 to If the NSCC creates an average of 1,100 new graduates each year, then the potential for new entrants within Nova Scotia is in the vicinity of just under 600 new workers per year, given the Student Survey suggests the balance intend to relocate. Employers reported hiring at a rate of 4.7 employees per year over the previous 5 years. In the next five years, the typical firm expects to see a retirement rate of 4 people per year. Without being occupation specific, this is more than enough supply to address the retirement identified in the survey, especially in the context of an oversupplied labour market. In terms of work flows (retirement and new entrants), BuildForce Canada forecast data reflect a fairly steady level of ICI employment over the next several years, adding slightly more than 1,000 jobs from 2014 to Using the Worker Survey to identify occupations at risk of worker shortages is more challenging than simply estimating the number of workers. A shortage of available skills may exist, even if workers are available. Added to this is the dynamic that a single large-scale ICI project can dramatically change the dynamics of labour supply in an Atlantic Canadian context: a condition that no doubt, at least in part, motivated recent interprovincial agreements on mobility. APEC s 2014 study of labour requirements for major projects across Atlantic Canada highlighted areas where project developers report labour pressures as a growing concern. 29 Within Nova Scotia, these included engineers, project managers, and several of the higher skilled trades where the proportion of the labour force over 55 years of age is relatively high. This is consistent with findings in this study arising from outreach to employers and, particularly, buyers. Specific trades noted by APEC, in the context of an Atlantic-wide level of concern, included bricklayers, steamfitters and pipefitters, painters, millwrights, and heavy equipment operators. Employers participating in this study also identified project schedulers as potential areas of occupational concern, in terms of both the number of those involved in this role as well as skill levels, particularly for more complicated construction projects. 29 APEC, The Labour Requirements for Major Projects in Atlantic Canada report, March Nova Scotia 2015 Labour Market Assessment

125 APEC also notes the challenges of developing a predictive model for retirement based on off-the-shelf data. Indeed, unique personal circumstances (health, wealth, personal responsibilities, among other factors) also strongly influence a person s individual retirement or career change decisions. APEC s 2013 investigation into skills shortages in Atlantic Canada notes the complexities in identifying, within available data, where skills mismatches may be manifested. 30 APEC notes that the main challenges to current methodologies relate to the relatively small sample size constituted by Atlantic Canada within the Labour Force Survey. As noted in this report s recommendations section, there is a role for the industry stakeholders assembled to steward this study to continue to work together to better improve the sharing of information that is collected and to work toward a system of data labour market information management that allows for more dynamic and frequent analysis. Retirement is 10 or more years away for the majority of workers surveyed (76%). However, by looking at the retirement intentions as indicated in the Worker survey, together with ICI employment estimates derived from BuildForce Canada data, a number of occupations were identified as potentially at risk due to the impact of retirement. The following occupations, wherein 15% or more of the labour force say they plan to retire within the next 5 years, include: Linemen; Cement Finishers; Sheet Metal Workers; Boilermakers; Gas Fitters; and Labourers We estimate the total retirement from these occupations will be in the vicinity of 470 workers combined; about 5% of our total trade-specific employment estimate of 9,950 ICI workers. This should not be considered a comprehensive list; it does not mean that other occupations will not be impacted by retirement as more worker survey responses would be needed across a broader spectrum of occupations for a more exhaustive analysis of how other occupations may be impacted by retirement. Interestingly, buyers have also highlighted areas where they are more likely to encounter challenges from a staffing perspective. Availability of skilled schedulers, project managers, supervisors, and designers has been highlighted by some buyers as being a constraint for them from time to time. In more complex assignments, this is more likely to be a factor and more likely to be characterised as a skills issue then an availability of workers issue. This is consistent with the findings of the 2007 LMA study. Also noted in the 2007 LMA study, availability of skilled schedulers, project managers, supervisors, and designers have been highlighted by some buyers as being a constraint for them from time to time. 30 APEC, Is There a Skills Shortage in Atlantic Canada? article, Atlantic Currents, Summer Nova Scotia 2015 Labour Market Assessment

126 7 RECOMMENDATIONS Completion of this study is a timely undertaking. The importance of skilled trades and the perceived challenges associated with labour supply in the construction sector going forward is a highly topical area of discussion and public discourse. There is broad recognition that the Province s demography is challenging and, while there may not be complete agreement on the issue of labour shortages, there is at least the acknowledgement that constraints in labour supply change the economics of large projects and therefore need to be proactively and effectively managed into the future. There is also a growing understanding and acceptance of the challenges that give rise to concerns respecting labour supply in the future, and the recognition that these concerns and challenges are not unique to Nova Scotia. Rather, many of these issues and challenges are present globally and within most Western economies. These economies share many of the same features including: Aging populations; Higher levels of youth unemployment; Economic challenges resulting in significant labour market dislocations; The seemingly relentless impact of technology and globalization; Aging infrastructure; and 93 Nova Scotia 2015 Labour Market Assessment