In the halls of Mikisew Group, a Fort McMurray-based company specializing in oilsands services, the sight of retirement parties has become increasingly common. Dan Gallagher, the CEO, recognizes the demographic shift within his workforce and the imminent challenges it presents. As Canada’s baby boomers retire in large numbers, the implications for companies like Mikisew Group are alarming.
The demographic shift is a nationwide issue. The “grey wave” is crashing ashore, with over 1.4 million Canadians aged 55 and older entering the workforce between 2016 and 2021. Last year, one in five Canadians of working age belonged to the 55 to 64 age group—an unprecedented high in Canadian census history.
This aging trend is coinciding with a broader problem faced by businesses across industries—the shortage of labor. In the second quarter of 2022, Canada recorded over a million vacant jobs, the highest quarterly number on record. While the COVID-19 pandemic disrupted labor markets, the root cause lies in the aging population.
The consequences of this labor challenge extend beyond individual businesses. Patrick Gill, senior director with the Canadian Chamber of Commerce’s business data lab, highlights that around 36% of Canadian businesses report a shortage of labor, rising to 45% in manufacturing and construction and 58% in the food and accommodation sector. The domino effect includes longer working hours, slower economic growth, and supply chain delays.
Proposed solutions range from increased immigration to encouraging older Canadians to stay in the workforce longer. However, these measures alone may not be sufficient. Rafael Gomez, director of the University of Toronto’s Centre for Industrial Relations and Human Resources, notes that demographic trends are not easily reversible. The last of Canada’s baby boomers will turn 65 in 2030, leading to a sustained decline in the working-age population.
Despite potential policy changes, employers must acknowledge that labor challenges are the new normal. The younger workforce will be in high demand, necessitating increased efforts to attract and retain talent. Businesses, therefore, need to adopt a proactive approach in addressing these workforce dynamics.
The Importance of Global Recruitment and Settlement: A Solution for Canadian Businesses
In this era of demographic shifts and labor shortages, businesses must explore comprehensive solutions to ensure their sustainability. Global recruitment and settlement services emerge as key components in addressing the challenges posed by the aging workforce.
Directpath Canada, a recognized leader in Global Recruitment, Immigration, and Settlement Services, offers tailored solutions to businesses navigating the evolving labor landscape. With a track record of excellence, Directpath Canada assists companies in securing a diverse and skilled workforce from around the world.
As the Canadian business landscape transforms, Directpath Canada stands as a strategic partner, providing expertise in global talent acquisition and seamless settlement services. In the face of the “grey wave,” businesses can rely on Directpath Canada to build resilient and dynamic teams that will drive success in the years to come.
