The True Cost of Construction Labour in Canada

a bulldozer on a hill
a bulldozer on a hill

It’s important to understand what exactly labour costs entail. Construction labor cost can include wages for the physical workers on site, benefits such as health insurance and worker’s compensation, taxes, overhead costs associated with running a business such as administrative staff and equipment maintenance, and general operating expenses. When you factor in all these components, it’s easy to see how quickly your budget can add up.

Factors that Impact Labour Costs

The first factor to consider when estimating labor costs is the type of project. For example, if you are working on a large-scale commercial project or a multi-phase residential job that could require more staffing than a single-family home. The number of workers you need, the complexity of the project, and type skills needed all factor into labor costs.

In addition to the size and scope of a job, other factors that can impact construction labour cost include:

  • Location – Costs for skilled workers vary significantly depending on geography, so if you are looking to hire local talent in a major metropolitan area, you may have to pay a premium.
  • Labour availability – In some cases, especially with small projects or specialized trades such as masonry or carpentry, it can be difficult to find qualified workers who are available and willing to work on short notice. This could drive up costs due to the extra effort required for recruiting and training new staff.
  • Quality – If you are willing to pay a higher wage for experienced workers who can produce high-quality results, this could factor into cost as well.

You Need To Factor In Expenses & Taxes

It is important to keep in mind that construction labor costs include much more than just wages for workers — there are also taxes, benefits, overhead expenses and other factors to consider. By understanding these components of total labor costs it becomes easier to manage your budget and ensure that your project is completed on time and within budget.

Outsourcing Your Hiring Can Impact Your Labour Cost

Another factor to consider when estimating construction labor cost is the use of outsourcing. Hiring an independent contractor or subcontractor can be a viable alternative to taking on full-time staff, and it can help you save money by avoiding costs associated with benefits and taxes that would normally come with hiring an employee.

Temp labour agencies, such as MGR Workforce, are helpful for building teams quickly and efficiently. By leveraging our extensive network of skilled workers and expertise in temp staffing, you can get the job done without having to worry about managing payroll or other administrative tasks associated with hiring full-time staff.


The true cost of construction labour is much more than just wages. By understanding the true cost of labour in the construction industry and implementing best practices for managing your budget, you can ensure that your project runs smoothly from start to finish. With careful planning and strategic decision making, even complex projects can be completed on time and within budget.



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