Older workers may be dampening the threat of a sudden and severe labour shortage as baby boomers retire by staying in the workforce longer, says a study by Statistics Canada.
The study—Participation of older workers—found that an estimated 2.1 million people between the ages of 55 and 64 were either employed or looking for work in 2006—more than double the total three decades earlier.
They represented 12% of the total labour force last year, compared with 10% in 1976.
An aging population and rising labour force participation rates among older workers were the two main forces behind these increases.
Older workers represented 14% of the total population, up from 11% in 1976. At the same time, the overall labour force participation rate for this group increased to 59% from 53%.
“This is an important trend since most of this age group are members of the front end of the baby-boom cohort,” the study says, “and their labour market attachment suggests a strengthening participation rate in the near future.”
The study suggests that participation in the labour force by this age group will continue to rise also because of rising education levels—particularly among women—and an apparent desire among people over 55 to continue working, either from interest, financial concern, or other factors, such as the virtual elimination of mandatory retirement.
“Whatever the reasons,” says the study, “the increasing labour force participation rate among older workers will likely soften the eventual economic impact of the aging baby-boom cohort.”
To read the study on Statistics Canada’s website, click here.
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