What Canada’s Aging Population Means For The Future of Work In Canada

Key Takeaways

• Canadians may be encouraged to work for longer to improve the participation rate. This isn’t necessarily a bad thing. 
• There will be strong career opportunities for newcomers to Canada in the next decade. 
• Immigration is going to be a key driver for the Canadian economy in the coming years. 
• Every Canadian province and territory is likely to see a significant increase in the percentage of foreign-born workers between now and 2041. 
• You can find all the data here.

Canadian Workers May Work For Longer

One key finding in the report is that Canadians working for longer will have a significant positive impact on the Canadian economy and ‘participation rate’. 

The participation rate refers to the percentage of working age people who are either employed or actively seeking employment. It’s a statistic used in analysing employment data to gauge economic engagement, amongst other things. 

A higher participation rate typically means increased productivity, higher tax revenues, reduced dependency on social welfare programs, higher economic growth, and flexibility and agility within the workforce. These are all good things for the Canadian economy.

Canada’s participation rate has hovered around 65% in recent years. This is an increase from around 61.4% in the 1970’s, largely driven by more women entering the workforce. But there has been a decrease in participation in the workforce since 2000, and we are expecting the downward trend to continue to 2030.

So, why does this matter?

Well, the Statistics Canada reporting notes that improved participation rates would have a significant impact on the economy. In fact, if Canada’s participation rate increased to 69.7% by 2040, this would have a similar impact to Canada welcoming a staggering 750,000 newcomers each year between now and then. Bringing in such high numbers of newcomers to Canada would not be sustainable, given the current housing crisis. So, Canadians working for longer could help bring up overall participation rates. 

This isn’t necessarily a bad thing. Many countries around the world are increasing their retirement age due to improved health outcomes for those in their 60s and longer lifespans. Canada’s current average retirement age is around 64 years, but people are eligible for the Canada Pension Plan from 60 years. This is lower than the 67 years we’re seeing countries like Australia and the UK adopt for their state pension eligibility, and significantly lower than Denmark’s 69 for people born in 1967 or later.

• You can learn more about Labour Force Participation from the Bank of Canada. 

Better Career Advancement Opportunities In The Next 6 Years

The last baby boomers turn 65 in the 2030s, which means that there will be significant opportunities for career advancement over the next decade as the baby boomers leave the workforce. 

For newcomers to Canada, this translates to increasing opportunities for advancement. There will be more positions opening in senior and management levels due to high numbers of people retiring and leaving the workforce. 

Immigration Is Essential For Canadian Economic Growth

To increase the size of Canada’s labour force, Canada needs to increase the percentage of working age Canadians who want to work while still admitting 500,000 immigrants each year – or it needs to bring in 750,000 immigrants each year. Given that the second alternative is unlikely, this means that higher immigration levels of around 500,000 per year with a focus on economic immigration is likely to continue in Canada. 

This is good news. When we look at the news cycle, changing immigration policies, and even changing sentiments towards immigrants in Canada, it’s easy to imagine a world where Canada is harsher on immigration. But these figures can give anyone who wants to move to Canada or who is currently on a temporary permit hope for your future in Canada. 

Where Will Newcomers Live in 2041? 

Finally, the Statistics Canada data also gives us a glimpse into what it thinks the newcomer population in Canada will look like in the year 2041. 

Here’s what they predict: 

• British Columbia and Ontario will have the highest percentage of foreign-born people. 
• The percentage of foreign-born people in Newfoundland and Labrador and New Brunswick will essentially double by 2041. 
• All provinces and territories in Canada are predicted to see significant increases in the percentage of foreign-born people between now and 2041. 

So, when it comes to choosing where to live in Canada – there’s really no wrong choice!