2016 SECTOR SPOTLIGHT – NAICS 23
Construction
Report Contents
What is this industry sector?


STATISTICS CANADA DEFINITION
SECTOR STRUCTURE
How does this sector stack up in Ottawa?


OTTAWA DASHBOARD
HIGHLIGHTS
Sector Employment (Jobs)





REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada)
2016 EMPLOYMENT – A SUBSECTOR VIEW
2016 EMPLOYMENT SNAPSHOT – INDUSTRY GROUPS
JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook)
KEY OCCUPATIONS IN THE SECTOR
Sector Self-Employment


SECTOR AT A GLANCE
A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT
Sector Business & Employer Counts


SECTOR AT A GLANCE
BUSINESS COUNTS AT INDUSTRY GROUP LEVEL
Online Supply & Demand


ONLINE JOB POSTINGS
ONLINE JOB SEEKER PROFILES
In the News



GAINS
LOSSES
TRENDS/PROJECTIONS
Sample Report – Industry Summaries
Note on geography: This report looks at data for the Ottawa Census subdivision. Census subdivision (CSD) is the
general term for municipalities (as determined by provincial/territorial legislation).
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
1
Construction (NAICS 23)
What is this industry sector?
STATISTICS CANADA DEFINITION
This sector comprises establishments primarily engaged in constructing, repairing and
renovating buildings and engineering works, and in subdividing and developing land.
These establishments may operate on their own account or under contract to other
establishments or property owners. They may produce complete projects or just parts of projects.
Establishments often subcontract some or all of the work involved in a project, or work together in joint
ventures. Establishments may produce new construction, or undertake repairs and renovations to existing
structures.
There are substantial differences in the types of equipment, work force skills, and other inputs required by
establishments in this sector. To highlight these differences and variations in the underlying production
functions, this sector is divided into three subsectors. Establishments are distinguished initially between those
that undertake projects that require several different construction activities (known as trades) to be
performed (NAICS 236 and 237), and establishments that specialize in one trade (NAICS 238).
A significant amount of construction work is performed by enterprises that are primarily engaged in some
business other than construction, for these enterprises' own use, using employees and equipment of the
enterprise. This activity is not included in the construction sector unless the construction work performed is
the primary activity of a separate establishment of the enterprise. However, if separate establishments do
exist, they are classified in the construction sector.
SECTOR STRUCTURE
Below we show this sector’s three subsectors (3-digit level), as well as the 4-digit level
Industry Groups that will be explored in this report.
SUBSECTOR NAICS 236 - Construction of buildings
Code
2361
2362
Industry group
Residential building construction
Non-residential building construction
SUBSECTOR NAICS 237 - Heavy and civil engineering construction
Code
2371
2372
2373
2379
Industry group
Utility system construction
Land subdivision
Highway, street and bridge construction
Other heavy and civil engineering construction
SUBSECTOR NAICS 238 - Specialty trade contractors
Code
2381
2382
2383
2389
Industry group
Foundation, structure, and building exterior contractors
Building equipment contractors
Building finishing contractors
Other specialty trade contractors
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
2
Construction (NAICS 23)
How does this sector stack up in Ottawa?
OTTAWA DASHBOARD
The graphic below ranks Ottawa’s Top 12 sectors (based on # of jobs in 2016) and shows how Construction
(NAICS 23) stacks up against the other sectors on a dashboard highlighting key local labour market information
(LMI).
HIGHLIGHTS
 5% of Ottawa jobs are in Construction.
 Job growth in this sector over the past three years accounted for 10% of all job gains in Ottawa.
 Ottawa is 25% below the national average in terms of share of workers in this industry.
 2016 average annual salary for jobs in this sector was $60,856; however, it is important to note that this
does not provide a full view, given the high percentage of self-employed in this sector.
 This sector accounts for 8% of all businesses in Ottawa and 9% of all employers (businesses with at least
one employee).
 This sector accounted for 1% of all Ottawa online job ads in 2016, with the most ads posted by
employers in Non-residential building construction.
 39% of active online job seekers in this sector in Q4 2016 identified Trades, transport and equipment
operators and related occupations as the most recent occupation group in which they worked.
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
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Construction (NAICS 23)
Sector Employment (Jobs)
REGIONAL TRENDS (5-year Job Growth - Ottawa vs. Ontario vs. Canada)
Region
2011 Jobs
2016 Jobs
Change
% Change
●
Ottawa
29,884
32,621
2,737
9.2%
●
Ontario
424,898
472,592
47,694
11.2%
●
Canada
1,238,080
1,377,198
139,118
11.2%
2016 EMPLOYMENT – A SUBSECTOR VIEW
Job numbers, growth rate and forecast number of new jobs
% Change
(2011-2016)
Forecast
change
(2016-2019)
NAICS
Description
2011
2012
2013
2014
2015
2016
238
Specialty trade contractors
18,038
17,928
18,319
18,558
19,971
20,012
11%
494
236
Construction of buildings
9,509
9,433
9,115
8,894
10,301
10,317
8%
215
237
Heavy and civil engineering
construction
2,337
2,462
2,397
2,294
2,318
2,292
-2%
7
Source: EMSI Analyst 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
4
Construction (NAICS 23)
2016 EMPLOYMENT SNAPSHOT – INDUSTRY GROUPS
Source: EMSI Analyst 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
5
Construction (NAICS 23)
JOB NUMBERS BY INDUSTRY GROUP (Past 5 years and 3-year outlook)
Job numbers, growth rate and forecast number of new jobs*
% Change
(2011-2016)
Forecast
change
(2016-2019)
NAICS
Description
2011
2012
2013
2014
2015
2016
2382
Building equipment contractors
7,880
7,786
7,971
8,173
9,015
9,068
15%
323
2361
Residential building
construction
7,374
7,290
7,091
6,617
7,270
7,239
-2%
47
2381
Foundation, structure, and
building exterior contractors
3,827
4,128
4,385
4,491
4,741
4,775
25%
164
2383
Building finishing contractors
4,575
4,237
4,206
4,171
4,402
4,374
-4%
3
2362
Non-residential building
construction
2,135
2,142
2,024
2,278
3,031
3,078
44%
168
2389
Other specialty trade
contractors
1,756
1,778
1,757
1,723
1,814
1,794
2%
4
2371
Utility system construction
806
876
885
894
955
956
19%
27
2373
Highway, street and bridge
construction
932
973
892
870
902
889
-5%
-1
2372
Land subdivision
502
517
516
390
278
259
-48%
-34
2379
Other heavy and civil
engineering construction
96
97
105
140
182
188
96%
15
SECTOR TOTAL
29,884
29,823
29,831
29,746
32,590
32,621
9%
716
Source: EMSI Analyst 2016 (*EMSI recommends taking occupation data below 500 jobs with “a grain of salt”
because of source data sampling sizes; occupation data is not considered reliable where fewer than 100 jobs )
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
6
Construction (NAICS 23)
KEY OCCUPATIONS IN THE SECTOR
The job data shown thus far has focused on number of workers in your sector and its industry groups. Now we
take a look at what these workers are doing by focusing on the key occupations in your sector.
Top Ten Occupations (Sector job numbers and growth over past five years)
Employed in
Employed in Change (2011 Industry (2011) Industry (2016)
2016)
% Change
(2011 - 2016)
% of Total
Industry Jobs
(2015)
-332
-10%
9%
2,436
219
10%
8%
1,878
2,198
320
17%
7%
Electricians (except industrial and power
system)
1,520
1,643
123
8%
5%
7205
Contractors and supervisors, other
construction trades, installers, repairers
and servicers
1,697
1,491
-206
-12%
5%
7251
Plumbers
748
1,225
477
64%
4%
0711
Construction managers
1,455
1,067
-388
-27%
3%
7521
Heavy equipment operators (except crane)
574
908
334
58%
3%
7313
Refrigeration and air conditioning
mechanics
733
903
170
23%
3%
1221
Administrative officers
619
806
187
30%
2%
NOC
Description
0712
Home building and renovation managers
3,194
2,862
7611
Construction trades helpers and labourers
2,217
7271
Carpenters
7241
Source: EMSI Analyst 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
7
Construction (NAICS 23)
Sector Self-Employment (2016)
SECTOR AT A GLANCE
A CLOSER LOOK AT SHARE OF SELF-EMPLOYMENT
The chart below shows share of self-employment for the overall sector and for each industry group.
Sector
Ranking
Share of workers self-employed in each industry group
Source: EMSI Analyst 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
8
Construction (NAICS 23)
Sector Business & Employer Counts (June 2016)
SECTOR AT A GLANCE
BUSINESS COUNTS AT INDUSTRY GROUP LEVEL
Code
Description
2361
Residential building
construction
395
125
66
32
9
3
1
2383
Building finishing contractors
318
107
53
20
4
3
2382
Building equipment
contractors
Other specialty trade
contractors
277
156
109
65
34
125
49
36
25
2381
Foundation, structure, and
building exterior contractors
139
89
55
2372
Land subdivision
27
6
2362
Non-residential building
construction
73
2373
Highway, street and bridge
construction
2371
2379
2389
1-4
5-9
10-19
20-49
50-99
100-199 200-499 500+
None
Total
0
1,395
2,026
0
0
1,108
1,613
6
3
0
456
1,106
7
4
0
0
424
670
39
12
5
0
0
312
651
6
3
1
2
1
0
512
558
35
23
22
5
4
1
0
214
377
8
4
6
5
1
2
3
0
14
43
Utility system construction
3
7
4
7
3
1
0
0
15
40
Other heavy and civil
engineering construction
4
3
1
0
0
0
0
0
10
18
Source: EMSI Analyst 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
9
Construction (NAICS 23)
Online Supply & Demand (2016)
ONLINE JOB POSTINGS
A Closer Look at Skill Level Required in Job Postings (Sector vs. Ottawa overall)
The chart below shows skill level requirements for jobs posted in this sector versus those posted for all Ottawa
sectors.
0%
20%
60%
11%
A: University Education
28%
28%
B: College or Vocational Education or
Apprenticeship Training
13%
14%
C: Secondary School and/or Occupation-Specific
Training
D: On-the-job Training or No Formal Education
Required
40%
14%
4%
9%
44%
Z: Unknown
35%
Construction
All sectors
Source: Vicinity Jobs 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
10
Construction (NAICS 23)
ONLINE JOB SEEKER PROFILES
In October 2016, Ottawa Employment Hub subscribed to newly published data providing insight into local labour
supply. This information is only available from October 2016 onward so we provide below the data for Q4 2016.
The numbers shown reflect Job Profiles that were either added or updated within a 30-day span by job seekers
living in Ottawa between October and December 2016.
A Closer Look at Occupations of those with Active Job Profiles
The chart below shows number of job seeker profiles by occupation group most recently worked in.
Source: Vicinity Jobs 2016
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
11
Construction (NAICS 23)
In the News Highlights
GAINS
Dec 19, 2016 Government of Canada News Release
Highway 417 expansion project to support safer and more efficient driving
The governments of Canada and Ontario are each investing up to $47.5M into the expansion of Highway 417
and rehabilitation of Merivale Road Bridge.
Dec 13, 2016 Government of Ontario News Release
Ontario Supporting Modern Science and Technology Facilities for Ottawa Students
The governments of Ontario and Canada are partnering with the University of Ottawa to invest over $115M in a
new Science, Technology, Engineering and Mathematics (STEM) Complex at the University of Ottawa. The
funding will be provided mostly by the University of Ottawa. The construction will take a number of months and
will require of number of skilled construction workers, providing good income for the duration of the project.
LOSSES
Oct 7, 2016
Ottawa Business Journal
Ottawa-Gatineau sheds 2,100 jobs in September
Looks at employment in the construction industry on a year-over-year basis and reports that employment in
Ottawa’s construction sector recorded one of the sharpest downturns.
TRENDS/PROJECTIONS
Jan 13, 2017 Ottawa Citizen
Hold the 2017 party: Ottawa’s economic engines – government, high-tech – aren’t firing on all cylinders
All signs point to a strong rapidly growing economy for Ottawa, but for some reason it’s not quite growing as
expected. Points to some sluggish (but stable) trends in the high-tech sector, and slower than expected Federal
Government hiring. However, with Federal infrastructure and renovation projects, construction is expected to
see some extra hiring. In the Ottawa and Gatineau regions, construction is expected to employ 42,000 people in
2017-18 which is about 13% higher than in 2016.
Nov 14, 2016 Ottawa Business Journal
Ottawa-Gatineau economy forecast to grow 2.2% in 2017
Real GDP growth in Ottawa is at the highest that it’s been in seven years. The 150th anniversary and celebration
of Canada is credited as being one of the main drivers of this growth. The construction industry, especially nonresidential construction, is expected to create a large boost for the economy as large federal contracts such as
the renovation of Parliament Hill is underway. Home-builders are also starting to expand their projects to take
advantage of this expected growth in Ottawa.
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
12
Construction (NAICS 23)
Sample Report – Industry Summaries
Below is a sample report that can be requested for any industry at the 3- or 4-digit (subsector or industry group)
level. Some of these may also be available on the Labour Market Ottawa web portal.
Industry Summary for Building equipment contractors
9,015
15.1%
Jobs (2015)
% Change (2011-2016)
14% below National average
Nation: 14.5%
Regional Trends
Region
2011 Jobs
2016 Jobs
Change
% Change
●
Ottawa
7,880
9,068
1,188
15.1%
●
Ontario
111,944
127,103
15,159
13.5%
●
Canada
291,742
333,977
42,235
14.5%
Top Occupations Employed by this Industry*
Description
Employed in
% of Total
Industry
Jobs in
(2015) Industry (2015)
Electricians (except industrial and power system)
1,511
16.8%
Plumbers
1,108
12.3%
Refrigeration and air conditioning mechanics
867
9.6%
Contractors and supervisors, electrical trades and telecommunications
occupations
394
4.4%
Elevator constructors and mechanics
280
3.1%
Source: EMSI Analyst 2016 ( *EMSI recommends taking occupation data below 500 jobs with “a grain of salt”
because of source data sampling sizes; occupation data is not considered reliable where fewer than 100 jobs)
Local Employment Planning Council – 2016 SECTOR SPOTLIGHT (Published February 2017)
13