Solving the skilled labour shortage

By Richard Lyall

for Canadian Forest Industries

June 17, 2026

The forestry and wood products industries are facing stiff headwinds these days as a result of the Trump-era tariffs but - like many others across Canada - finding skilled labour is more difficult.

From sawmills and engineered wood manufacturers to homebuilders and infrastructure contractors, employers across the province are struggling to find qualified workers, particularly in specialized and skilled trades. The crisis is driven by a wave of baby boomer retirements.

Sawmills, pulp and paper facilities, engineered wood manufacturers and harvesting contractors rely heavily on industrial trades such as millwrights, electricians, welders and heavy equipment technicians. The employers compete for talent with construction, mining and manufacturing.

Statistics show that thousands of skilled trades workers are set to leave the workforce over the coming decade, which will only exacerbate the problem. Meanwhile, the pipeline of workers who complete their apprenticeship training and receive certification is shrinking dramatically.

In Ontario, for example, the stats show that fewer than half of apprentices in the industrial trades heavily used by sawmills, pulp and paper operations and wood manufacturing facilities completed their programs. Only 20 per cent achieve certification within the expected program duration.

The apprenticeship completion gap is not simply an education problem. It is an economic problem.

Funds are being pumped into programs. but they are producing too few certified journeypersons.

A revealing statistic is the Certificate of Qualification examination pass rate in Ontario. In fiscal year 2023-24, only 44.5 per cent of candidates passed. That means many apprentices who have already invested years completing workplace and classroom requirements still fail to obtain certification.

The result is a system that leaks talent at every stage.

There are better models.

Austria, Germany and Switzerland operate the world's most respected apprenticeship systems. Their final examination pass rates typically range from 79 to 95 per cent, while true dropout rates are estimated at between five and 17 per cent. Switzerland's apprenticeship dropout rate is roughly five per cent.

We cannot simply copy these systems as there are many factors at play. Their success rests on institutional foundations built over generations, including employer chambers, extensive labour-market coordination and a cultural respect for vocational education that does not currently exist in North America.

But we can adopt practical elements that have proven successful overseas.

The first priority is fixing the bottlenecks that discourage apprentices from completing their training.

Exam access remains a serious problem. Ontario, for example, currently operates only a limited number of testing locations, creating scheduling delays that can stretch for months, particularly in Northern Ontario. Apprentices who have completed all requirements should not be waiting indefinitely for an opportunity to write their certification exam.

Government needs to expand testing capacity, eliminate scheduling backlogs and review examination quality. A pass rate below 50 per cent raises legitimate questions about whether exam design, administration and preparation supports are aligned with the skills apprentices are expected to demonstrate.

Financial support is another urgent priority.

In Austria, Germany and Switzerland, apprentices receive consistent financial support throughout their training. Here, apprentices frequently face weeks without income while attending mandatory in-school training blocks.

For mature apprentices supporting families, mortgages and household expenses, that loss of income can be devastating.

The $6-billion Team Canada Strong initiative announced recently by the federal government recognizes this challenge by proposing a $400 weekly income top-up during mandatory training and a $5,000 certification bonus. These are positive steps, but more must be done to help.

Expanding in-school training capacity is paramount. Delays in obtaining classroom placements can unnecessarily lengthen apprenticeship timelines and increase the likelihood that apprentices abandon their programs before completion.

One of the most transferable lessons from Europe is the importance of early career guidance.

In Switzerland, vocational education is presented as a respected first-choice pathway beginning in early adolescence. Students receive meaningful exposure to skilled trades careers long before graduation.

By comparison, many of the apprentices enter our system around age 30, often after pursuing other educational or career options first. Research consistently shows that late, unplanned entry into apprenticeship correlates with higher dropout rates.

We must integrate structured skilled-trades exploration into the secondary school curriculum beginning in Grades 8 and 9. Students need greater exposure to careers in forestry operations, millwrighting, industrial maintenance, heavy equipment operation, carpentry and other occupations critical to the resource and construction sectors.

Employers also need better support. Managing apprenticeship paperwork, compliance requirements and training obligations can overwhelm smaller firms.

The reforms will not transform our apprenticeship system overnight. The European countries spent decades building their systems. But we do not need to replicate Europe. We just need to adapt some of their best ideas.

Richard Lyall is president of the Residential Construction Council of Ontario (RESCON). He has represented the building industry in Ontario since 1991. Contact him at media@rescon.com.