Graying of Canada's workforce threatens to worsen labor crunch

By Anna Mehler Paperny

TORONTO – Canadians nearing retirement outnumbered these getting into the workforce by a report margin in 2021, census information launched on Wednesday confirmed, elevating fears the nation’s labor scarcity might worsen in coming years.

Though Statistics Canada expects the hole to shrink earlier than rising once more round 2036, it warned that working-age Canadians’ share of the inhabitants was falling. In the meantime, the variety of these aged 85 and older is projected to triple by 2051.

“We've reached a stage the place the working-age inhabitants has by no means been older,” stated Julien Bérard-Chagnon, senior analyst with Statistics Canada’s Centre for Demography.

Extra seniors are working a minimum of part-time and they're serving to their kids and grandchildren, Bérard-Chagnon stated. However the shrinking workforce as a share of the inhabitants will current financial and financial challenges nonetheless, he stated, making a higher want for healthcare staff, for instance – a area already in brief provide.

“It issues all people.”

As Canada faces a labor crunch – the unemployment fee fell to five.3% final month – its authorities is more and more counting on short-term residents – a fast repair some economists argue depresses wages and makes migrants susceptible to exploitation.

Earlier this yr the federal authorities introduced it was additional increasing its short-term employee packages, lifting limits on low-wage positions in seasonal industries and permitting sure sectors to rent as much as 30% of their workforce by low-wage short-term international work, amongst different measures.

Retirement-age residents make up a smaller share of Canada’s inhabitants than in Germany, France, Italy and Japan, however it's bigger than in america and United Kingdom, Statistics Canada stated.

The findings are “a warning shot throughout the bow” to Canada’s authorities, stated Armine Yalnizyan, an economist. She stated they confirmed an imminent want to enhance coaching and dealing circumstances to optimize the workforce.

“We may very well be maximizing the potential of the folks in our midst way more successfully, however we'd like a plan to do this. It doesn’t simply occur.”