In a study published in mid-June titled “Labour force projections in Canada, 2006 to 2031” Statistics Canada forecasts the evolution of the active labour force for the next two decades. The various scenarios considered all lead to similar results: the overall participation rate of Canadians will decline 5 to 10 points within 25 years
According to the hypotheses, the proportion of people aged 15 and older actively in the labour force or who are seeking work would vary between 58 and 62% in 2031, from 67% in 2005. At that time, there would be only two workers for each retired person, less than half the number there is today. This trend has already been observed in other industrialized countries—Germany and the U.S. in particular. At cause are the declining birthrate and the large numbers of baby boomers who are retiring
The study shows that the rapid aging of the labour force will continue to have an impact on the labour market until the early 2020s at least. Within 15 years, 20% of Canadian workers will be 55 years of age or older. Employers will be faced with the massive challenge of managing and renewing their pool of workers. The increase in the number of older workers could also affect labour productivity. It is up to recruiters and managers to be aware of these issues and to adapt accordingly.