strategies for overcoming skilled trades labor shortages in 2025.

The ongoing shortage of skilled trades workers is set to continue in 2025. Economic recovery, technological advancements, and infrastructure investments will pressure a labor market that’s already stretched thin. Employers looking for skilled trades talent will have to adapt.

Amid uncertainty and rapid change, filling skilled trades roles will require new recruitment and retention strategies. In this article, we’re sharing some of our industry insights as a trusted partner for finding skilled trades talent.

Below, we’ll look at some of the challenges employers are facing in finding talent for skilled trades roles. We’ll also share our expertise on new strategies for overcoming the shortage in 2025.

what’s driving the labor shortage in skilled trades?

There’s no single factor driving the labor shortage in skilled trades. Rather, it’s a complex combination of an aging workforce and barriers to entry for new workers. Below, we’ll cover some of the key issues that will create challenges to finding skilled talent in trades sector.

the skilled trades workforce is aging.

Many skilled trades workers are currently approaching retirement age. By 2030, US manufacturing companies will need an additional 2.1 million workers to meet demand in skilled trades. In Canada, 700,000 skilled trades workers will retire by 2028, taking valuable knowledge and experience with them.

perception challenges create a barrier for new entrants.

For many Gen Z workers, there’s an ongoing perception that skilled trades aren’t as prestigious as white-collar jobs. In a McKinsey survey of 1,000 18 to 20-year-olds, 74 percent said trade jobs carried a stigma. Boosting young workers’ perceptions of skilled trades will be vital to growth in the operations & industrial sector.

educational and training barriers hamper workers.

The skilled trades worker shortage limits the number of teachers and apprenticeship mentors in vocational schools. This leads to longer waitlists for apprenticeships and schools that can’t keep up with demand. In turn, new entrants may be left with few options for acquiring the training they need to get a job in the trades.

evolving skill requirements are changing the nature of trades jobs.

Demand for training doesn’t stop at certification. Continuous learning is essential for many trade careers as technology continues redefining the skills tradespeople need. Yet only 41 percent of blue-collar men and 38 percent of blue-collar women are satisfied with the training opportunities at work. This signals an opportunity for employers to introduce programs that boost morale and support ongoing development.

the importance of addressing the shortage in skilled trades.

The skilled trades shortage isn’t just an issue for employers; it creates a cascading effect throughout the supply chain that demands urgent attention. For example, a lack of skilled welders might mean fewer specialized parts can be produced, delaying shipments of critical components for infrastructure and manufacturing projects.

These delays compound as projects fall behind schedule – meanwhile, businesses face surging costs as they compete for limited talent. When public sector projects like bridges or railways are delayed, that can impact the economic growth of entire regions.

Business leaders that take proactive steps to address the trades shortage will not only help their own economic growth but contribute to the economic prosperity of their communities as well.

top strategies to address the labor shortage.

Addressing the labor shortage will be an ongoing challenge, but there are some clear ways to make progress in attracting and retaining a skilled trades workforce. This includes strategies such as:

investing in education and training.

Education and training opportunities are critical to helping reduce barriers to entry. Employers can help new entrants join the trades with public-private partnerships that expand vocational programs in high schools and colleges.

More experienced workers can keep their skills current through employer-sponsored training. For example, one of the most in-demand skills in manufacturing is programmable logic computer (PLC) troubleshooting and programming, which employers can provide online.

rebranding skilled trades.

How you communicate to candidates is part of your employer brand – and it’s an especially crucial consideration for trades opportunities. Employers need to go beyond standard job postings to showcase the success stories of tradespeople who have built rewarding careers.

Targeted digital marketing on platforms like Instagram and TikTok can help reach younger generations and challenge outdated stereotypes about trade work.

emphasizing diversity and inclusion.

Women represent only 5% of skilled trades workers in Canada and the US. Progressive employers can expand their talent pool by creating workplace cultures that are more welcoming to underrepresented groups such as women and minorities.

This can also include things like scholarships and support networks that give nontraditional entrants the support they need to enter the trades.

retaining experienced workers.

Retaining experienced workers can help ease pressures on the demand for new talent. Incentives such as flexible schedules, reduced physical demands, and pension bonuses all give experienced workers the option to postpone retirement.

During their remaining time on the job, it’s crucial that they pass their expertise on to new entrants. Mentorship programs can help formalize the process by pairing experienced workers with trainees to ensure knowledge isn’t lost when workers retire.

leveraging technology.

As automation and robotics gain significant traction across industrial & operational sectors, they’re increasingly essential to fill gaps in the workforce.

For example, employers can integrate AR and VR training to reduce reliance on skilled staff to train new employees on production and safety processes.

enhancing working conditions.

The new demand for flexibility isn’t limited to office workers. 42% of blue-collar workers consider flexibility equally (or more) important than pay. For skilled trades workers, flexibility can come in the form of split shifts, flexible hours, or a reduced work week.

Offering competitive compensation – including a strong benefits package – and improving workplace safety can also attract skilled candidates.

For talent acquisition strategies tailored to your business, speak with an expert at Randstad today. Next, we’ll take a look at some real-life ways businesses are adopting these strategies to find success with hiring and retaining skilled trades workers.

success stories: from tech adoption to industry collaboration.

From apprenticeships to rebranding campaigns and tech adoption, many organizations are stepping up their strategic approaches to overcoming the skilled trades labor shortage.

For example, Schneider Electric leveraged automation at its Lexington, KY factory to increase energy efficiency. In a TIME magazine talk, Aamir ​​Paul, president of North American operations at Schneider Electric, says that automation created 30% more skilled jobs. But it required a careful approach to implementation: “You change it from something people fear to something they’re excited about because they can see how their capabilities can continue to contribute.”

In Canada, 3M is partnering with the Canadian Welding Bureau (CWB) to create 5 million new learning experiences for underrepresented workers. 3M is also providing PPE and safety equipment for 20 classrooms across the country. And Skilled Trades Ontario launched a marketing campaign for the trades called “Sounds Like Opportunity” to put a fresh spin on skilled trades options for young workers.

the role of government policy.

Government policy is playing a significant role in addressing the shortage as well. In 2020, the US Department of Labor allocated $100 million to 28 public-private apprenticeship partnerships supporting women in trades, building trades, and more.

In Canada, the Ontario government announced an investment of $1.5 billion in 2021 to support skilled trades over four years. Canada’s 2024 to 2025 Departmental Plan includes education and work experience initiatives, and funding for equipment purchases.

These large government investments create organizational opportunities to engage in partnerships and provide training resources to enhance their strategies for hiring skilled trade workers.

looking ahead: skilled trades in 2025 and beyond.

Employers will need to continue to innovate their recruitment, training, and retention practices to keep their talent pipeline strong in 2025.

Stakeholders involved in creating jobs for skilled trades workers need to think ahead to create sustainable workforces over the short and medium term. As skilled trades workplaces evolve, employers will need to continue to adapt to offer the training, support, and benefits that keep talent in the trades.

final thoughts:

From building partnerships to providing training and incentives for older workers, there are a wealth of options to choose from. But they’re connected by two common drivers: collaboration and innovation to build a more resilient skilled trades workforce.

As your partner for talent, we work closely with organizations looking to staff teams with skilled trades professionals who contribute to operational excellence. If you don’t know where to start, reach out to a recruiting expert today to connect with top talent in critical positions.

Labor shortages will make hiring a challenge in 2025, but the future is bright for employers willing to go the extra mile to ensure their workplace is ready for the next generation of skilled trades labor.