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AUGUST 30, 2001
Skilled labour shortages likely as boomers retire
Ottawa – Canada’s current shortage of nurses could be just the beginning of a looming labour crisis, warns a new report released today by the Columbia Foundation and the Canadian Council on Social Development (CCSD). A general labour shortage or a series of isolated shortages of skilled workers may occur as Canada faces the rapid retirement of baby boomers, beginning as early as 2006.
The study, Building Bridges Across Generations in the Workplace, written by Sylvain Schetagne, Senior Research Associate at the CCSD, points out that few in Canada’s government, industry and labour circles are sufficiently aware of the potential seriousness of the problem. The baby boomers continue to be Canada’s demographic heavyweights. This fact, combined with decreased fertility rates, means that Canada’s workforce is aging. In the year 2000, workers aged 35 to 54 represented fully half the workforce in Canada, compared to just over one-third of the workforce of 25 years ago. The eldest among the baby boomers have already reached what some people refer to as early retirement age: 55 years. The fact that the transition period between work and retirement now begins at a younger age than it did even a few years ago adds momentum to a phenomenon that should give pause to policy-makers.
The report points out that the mass retirement of baby boomers in the coming years could entail many risks. Some of the possible effects outlined in the report include: a general labour shortage, or a shortage of skilled labour; a decrease in the productivity and competitiveness of Canadian companies as a result of the loss of experienced and competent personnel; increases in social costs for those left behind due to the smaller number of workers; and, a drop in levels of financing for social programs.
“This report tells us that when older workers leave the labour market, they take with them a considerable cache of knowledge and valuable experience – much of it essential to the smooth functioning of their organizations,” said Marcel Lauzière, Executive Director of the CCSD. “On a positive note, the report underlines the potential benefits of building productive bridges between generations in the workplace over the next decade.”
“There is a real risk of losing much of this treasury of skills and experience, if steps are not taken to ensure a smooth transition to the next generation,” said Tobi Davidge, Executive Director of the Columbia Foundation. “It is necessary that there be a better transfer of knowledge and skills acquired on the job, if efficient operations are to be maintained.”
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The CCSD is an independent, non-profit research institute dedicated to improving the social and economic security of Canadians. Led by a national, voluntary Board of Directors, the Council’s members share a commitment to improving the lives of Canadians.
The Columbia Foundation is committed to investing in human and social capital for the benefit of all Canadians. We work to fund innovative social research with practical applications, to develop and fund new scholarships that promote re-training and life-long learning, and to promote the collaborative and inclusive involvement of
citizens in decision-making and community building.
Building Bridges - Related Material
Canadian Council on Social Development,
190 O'Connor Street, Suite 100,
Ottawa, Ontario, K2P 2R3
Tel: (613) 236-8977, Fax: (613) 236-2750, Web: www.ccsd.ca, Email: council@ccsd.ca
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