7 Engineering Market Projections from Now to 2025

What will the engineering market look like in the next decade?  Through its partnership with Centre for Spatial Economics (C4SE), Engineers Canada has developed a report characterizing current supply and demand needs for engineers projecting through the year 2025. This information is tracked to provide accurate labour market information, including: employers, recruiters and those seeking employment, recent and potential graduates, and faculty and students in engineering programs. The C4SE’s mission is to improve the quality of regional economic information and research that is conducted in Canada. In efforts to understand the demographic and economic changes, they collect and analyze data as an independent firm.

The report provides projections for a number of engineering occupations and highlights the demand to replace engineers exiting the workforce as baby boomers retire. Considering the number of degrees being granted in Canadian universities, the report emphasizes the number of entrants into the labour market. Here are seven takeaways from the report titled “Engineering Labour Market in Canada: Projections to 2025.”

1. Economic Activity is Shifting to Western Canada

As Canadian universities—primarily in the provinces of Ontario and Quebec—are granting an increasing number of engineering degrees, they’re also creating new entrants to related occupations. However, as economic activity is shifting to Western Canada, so too is the demand for engineers. This theme runs through the projections to highlight the importance inter-provincial migration for engineers.

2. Industry Demand for Civil and Mechanic Engineers Is Diminishing

Industry demand for civil and mechanical engineers is diminishing, but Canadian universities are granting 2,700 and 3,000 degrees respectively each year. While certain growth in industries will demand workers to replace those retiring, job openings will taper off during the last five years of the forecast due to diminishing demand and industry expansion.

3. Industrial, Manufacturing, and Electrical and Electronics Engineering Have a Growing Replacement Demand

While the total number of job openings will taper off during the last five years of the forecast, replacement demand for retiring works will continue to grow. Canadian universities are granting degrees in an adequate number to meet supply requirements.

4. There is Little Need for International Migration For Metallurgical and Materials Engineers

Though there will be a small number of job openings for metallurgical and materials engineers over the next five years—new entrants will fill around half of these openings. Ontario has the highest concentration of the occupation, and itself will produce 70 percent of these openings—this means very little demand for international migration will be necessary to meet the total supply requirements.

5. Mining and Geological Engineering Numbers Are Somewhat Unpredictable

The average wage paid to mining and geological engineers is high, thus there may be more new entrants than forecasted. There is recurring labour market tightness from major projects in British Columbia and Ontario, meaning there is a high demand for these workers.

6. Openings for Engineering Managers Are Tied to Replacement Demand

For the next five years, there will be approximately 1,080 job openings for managerial positions annually, and 70 percent of these are related to replacement demand. These jobs are exclusively offered for occupational mobility, meaning new entrants will not be given the experience required to fill the positions. International migration averages approximately 100 openings annually, while inter-provincial migration is rare due to licensing requirements.

7. Ontario Will Produce Half of the Openings for Software Engineers

Despite the shift towards demand in Western Canada, the Canadian economy is forecasted to produce 1,250 openings for software engineers annually over the next five years, half of which will be located in Ontario. Though there is expected reduced expansion demand from the industry, openings are expected to remain stable. Software engineering degrees from Canadian universities supply approximately 1,000 workers annually.