By Anna Mehler Paperny

TORONTO (Reuters), – The number of Canadians approaching retirement was higher than that who entered the workforce in 2021 according to census data. This raises concerns about the nation’s labour shortage in the future.

Statistics Canada predicts that the gap will shrink and then grow again in 2036. However, the agency warned that the proportion of working age Canadians is falling. For the meantime, it is expected that 85-year olds will double by 2051.

“We have reached a stage where the working-age population has never been older,” said Julien Bérard-Chagnon, senior analyst with Statistics Canada’s Centre for Demography.

More seniors are working at least part-time and they are helping their children and grandchildren, Bérard-Chagnon said. However, the declining workforce will pose economic and financial challenges. This could lead to a higher demand for healthcare workers, which is already in short supply.

“It affects everybody.”

Canada is facing a labor shortage. The unemployment rate dropped to 5.3% in the last month. Canada’s government has been increasing its dependence on temporary workers. This quick fix, economists say, depresses wages and exposes migrants to exploitation.

The federal government had announced earlier this year that it would be expanding its programs for temporary workers, including lifting the limits on seasonal jobs and allowing some sectors to employ up to 30% through low-wage, temporary foreign work.

Statistics Canada stated that while retirement-age Canadians make up less than those in France, Italy, Japan and Germany, it’s still a larger proportion than the United States.

Armine Yalnizyan an economist said that the findings were “a warning shot across Canada’s bow”. According to her, they indicate an impending need for improved training and work conditions in order optimize the workforce.

It is possible to maximize the potential for people within our ranks far more effectively. But we must have a plan. It doesn’t just happen.”