P.E.I. Sees Growth Amid Ongoing Labour Shortages

Prince Edward Island (P.E.I.) is standing out nationally with a remarkable 3.6% growth in its GDP for 2024, making it the fastest-growing province in Canada. This impressive increase comes largely from a boom in the construction sector.

New developments including homes, schools, clinics, and commercial buildings are popping up across the Island, contributing about $580 million to the provincial economy last year. “That’s quite a significant contribution for a small place like P.E.I.,” noted Sam Sanderson, executive director of the Construction Association of P.E.I. He added that demand for construction is unprecedented, not just in P.E.I. but throughout all of Canada.

Despite this rapid growth, the construction industry is struggling with labour shortages. With over 22,000 newcomers settling in P.E.I. between 2020 and 2024—more than the total for the previous two decades combined—the demand for skilled workers is higher than ever. Stratford, one of the province’s fastest-growing municipalities, is seeing new homes being built quickly, but not fast enough to alleviate the ongoing housing shortage.

Industry leaders believe that the solution lies in attracting skilled workers rather than simply pouring money into the sector. “Financial investment alone won’t address this issue,” Sanderson highlighted. “What we really need are skilled people.”

The situation isn’t unique to P.E.I.; Atlantic Canada as a whole is facing challenges due to an aging workforce and a shortage of tradespeople in essential sectors, which could worsen given recent federal immigration policy changes. Last year, Ottawa capped permits for international students and reduced access to temporary foreign workers, alongside scaling back permanent immigration targets. This could slow the influx of talent needed in sectors ranging from construction to healthcare.

Patrick Brannon, a senior researcher with the Atlantic Economic Council, stressed the importance of bringing young people into Canada to plug these industry gaps. “Any measures we can undertake to attract youth will significantly benefit us in the long term,” he said.

While population growth continues to challenge the available housing supply, experts warn that a lack of political will to support home construction—like easing municipal zoning regulations—could exacerbate affordability issues for Islanders. Without these necessary changes, many residents may find housing increasingly out of reach.

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