Canada: Economic Report on Ontario Points to Aging Workforce

The "Ontario's Long-Term Report on the Economy," issued by the Ministry of Finance, states that, among other things, Ontario's working-age population share (ages 15-64) will decrease from 69.4% of the population in 2009 to 61.5% by 2030. In absolute numbers, the working-age population is expected to increase by 13.5%, but that is about half the growth seen over the previous two decades.

Population aging and the slowing pace of growth in the working-age group could contribute to a slower rate of future real gross domestic product (GDP) growth.

Since participation in the job market is significantly lower for older age groups, population aging will be a factor in slower labour-force growth to 2030. As the large cohorts of baby boomers reach retirement age, the number of people turning 65 is projected to surpass the number entering the working-age group (at age 15) from 2017 until the early 2030s. As a result, the working-age group will grow solely because of net migration during this period.

While looking to immigration, the report also encourage policies and workplace initiatives that promote more flexible work arrangements in all segments of the working-age population and specifically put forward facilitating phased retirements as a way to encourage skilled workers to remain in the workforce longer, either full time or part time.

Source: Ontario Ministry of Finance News Release (January 22, 2010)

Study: Generational Differences at Work More Matter of Perception than Reality

Differences among the generations in the workplace--Baby Boomers, Generation X and Generation Y--are more about perception than reality, with each viewing other generations more harshly than they view their own. However, according to a Conference Board of Canada study, the generations are more alike than they realize.

The report--Winning the Generation Wars: Making the Most of Generational Differences and Similarities in the Workplace--is based on a literature review as well as a survey of over 900 workers. According to the report, negative stereotypes of the three generations include:

• Boomers are seen as less comfortable with technology, less open to change, and less accepting of diversity than other generations;
• Generation X workers are seen as cynical, independent, and easily annoyed by any hint of being micro-managed; and
• Generation Y workers are seen by older colleagues as lazy, difficult to manage, and perpetually prepared to bolt from the organization as soon as another opportunity arises.

Tim Krywulak, Senior Research Associate, said that “This research shows each generation includes workers with similar personality types, workplace motivations, and social behaviours. Workers from all three generations want respect, flexibility, fairness, and the opportunity to do interesting and rewarding work.” Employers should manage the differences in perceptions among the generations while recognizing the cross-generational similarities in workplace preferences, by, among other things:

• implementing programs, policies and practices that respond to the cross-generational desires for respect, flexibility and fairness in the workplace;
• building a culture of inclusion to address the negative stereotypes about the generations in the workplace; and
• learning from effective practices used by other organizations.

Source: Conference Board of Canada News Release (November 16, 2009)

Canada: Report Shows Obesity Affecting Work Performance and Highest among Older Workers

According to research from Statistic Canada, obesity among employees is more than just a personal health issue when it begins to affect job performance, and obesity is most prevalent among older workers aged 55 to 64, 21% of whom were obese in 2005. "Obesity on the Job" points out that this held for both men and women, although the prevalence was lower among women.

Among other things, obesity, especially for women, may have a negative impact on workers more often through presenteeism (that is, reduced productivity on the job) rather than absenteeism. In addition, obese men age 55 to 64 had a higher risk of reducing their work activity due to a long-term health problem.

Source: Statistics Canada The Daily (February 20, 2009)

Canada: Economy Leading Boomer Business Owners To Delay Retirement

According to a poll conducted by the Royal Bank of Canada, 37% of Canadian boomers who plan on retiring in the next five years and who own their own business plan on delaying their retirement due to current economic conditions. The Bank's 19th Annual RBC Registered Retirement Savings Plans Poll also found that 28% of Canadian boomers plan on delaying their retirement due to current economic conditions, 43% say their retirement has been delayed between one and two years, 37% say three-to-five years, and 9% say they don't know.

Further comparing business owners to other boomers, the survey found that 32% of retiring boomer business owners say they will never fully retire, 19 percentage points above the Canadian boomer average. 50% of retiring boomer entrepreneurs say they will be semi-retired or working part-time at age 65, compared to 40% of the general boomer population. In addition, only 37% of retiring boomers who own their own business expect to be fully retired at the age of 65, as compared to the Canadian boomer average of 47%.

Source: Royal Bank of Canada Press Release (February 18, 2009)

Canada: Study Finds Current Economic Downturn Will Not Solve Demographic Problems; Governments Must Switch Gears

The current economic slowdown may help ease, but will not stop the coming shortage of
available workers in Nova Scotia, specificially, and in Canada, generally. According to the report "The Developing Workforce Problem: Confronting Canadian Labour Shortages in the Coming Decades" prepared by Dalhousie University Professor Emeritus Dr. Jim McNiven for the Atlantic Institute for Market Studies (AIMS), Canada would need "a sustained recession over some 20 years to cope with the demographic crunch we have created for ourselves."

The combination of the baby boom generation aging and hitting traditional retirement age, the decline in birth rates, the failure of immigration to pick up the slack, and stagnant productivity mean that government policy must be overhauled. Programs that helped boomers, such as job creation, employment insurance, and nearly retirement all helped open jobs for the boomers are no longer what is needed. Instead, McNiven suggests a combination of approaches to alleviate the pending crisis:

• better immigration and child care policies to increase the population;
• encourage an increase in the productivity rate; and
• increase the labour force participation rate by reaching out to segments of the population with traditional low rates and encourage people to stay working beyond "Freedom 55."

Sources: Atlantic Institute for Market Studies Media Release (January 7, 2009); Halifax Chronicle Herald "Freedom 85, or why you’ll work forever" (January 10, 2009)

Canada: Expert Panel Members Ask Government To Act on Recommendations

Although Canada established an expert panel on helping older workers in 2007, when the final report was presented in 2008, it was "quietly released by then-Minister of Human Resources and Social Development Monte Solberg in late July, months after it was submitted to him." Now, the former head of the panel and a leading member are calling on the government to focus on the panels recommendations with respect to employment insurance reforms.

According to Erminie Cohen, the panel's chair, the "thinking of the panel may be ahead of its time but our ideas were certainly an antidote to the economic trouble we're entering." Panel member Françoise Bertrand, president of the federation of chambers of commerce in Quebec, argued that improving the extent to which older workers participate in the workforce is as important to the economy as immigration and helping families reconcile the work-life balance.

Among other things, the panel recommended to let laid-off, long-time workers qualify for employment insurance without having to live off their severance cheques first and to let these laid-off, long-time workers receive benefits for longer than normal.

Sources: Telegraph Journal "Retired senator joins call for EI reforms" (November 13, 2008); Times & Transcript "Ottawa overlooking seniors, says panel member" (November 14, 2008)

Canada: Conference Board Report Suggests Employers Not Making Efforts To Retain Mature Workers

The Conference Board of Canada has released a research report suggesting that while Canadian employers are worried about a rapidly aging workforce, they are not putting their money--or their human resources policies--into innovative ways to retain them. According to "Harnessing the Power: Recruiting, Engaging, and Retaining Mature Workers," authored by Karla Thorpe, most "organizations have not yet targeted specific human resources programs and policies to their mature workers. This is limiting their ability to attract, retain, and engage this increasingly important segment." Specifically, only 11% actively try to recruit mature workers with measures such as rehiring former employees and offering flexible hours or phased retirement.

On the hiring side, however, the Conference Board found employers to be a lot more active with regard to enticing mature workers back into the workforce. For organiazations that specifically recruit older workers, 73% report success in hiring them; for organizations taking a more general approach, only 23% report success attracting mature workers.

The report concludes that employers will need to invest in a better understanding of the motivations, needs, and preferences of this cohort in order to ensure organizational success as the post–war baby boom ages. It also singled out some employers that have responded to an aging workforce with innovative solutions.

Sources: Conference Board Executive Summary (October 2008); Canwest News Service "Mature workers need wooing: Conference Board" (October 17, 2008)

Canada: Study Looks at Employer Readiness for Boomer Retirements

A survey conducted by the Human Resources Professionals Association (HRPA) in partnership with Life's Next Steps, reports that, while many Canadian employers face retirement levels of 20% or more over the next five years, most admit that they are not fully prepared to deal with this important issue. Specifically, HRPA's "Are Canadian Firms Prepared for the Boomer Exodus from the Workforce?" reports that only 14% of organizations feel fully prepared for "the coming talent shortage," while 23% admit to being "poorly prepared" and 60% say they are only "somewhat prepared".

"Many boomers obviously want to continue working in some way, to remain active and engaged or due to financial concerns," said [Suzanne Armstrong, president of Life's Next Steps.] "HR has an opportunity right now to take the lead in creating programs that help boomers plan for a different kind of retirement, and that encourage good employees to stay involved in the workforce in ways that are practical and flexible. It can be a win-win for employees and organizations. But employers need to act now to create initiatives and incentives aimed at keeping some of these excellent employees on the job in some way."

Source: Human Resources Professionals Association News Release (October 8, 2008)

Canada: Study Evaluates Worker Understanding of Anticipated Retirement Income

According to research published by Statistics Canada, about two-thirds of Canadian "near-retirees" anticipate that their retirement income will be adequate or more than adequate to maintain their standard of living once they have left the workforce. In addition, individuals who receive advice are more likely than others to express confidence in the adequacy of their retirement savings to maintain their standard of living in retirement.

Of the 7.2 million Canadians aged 45 to 59 in 2007, about 80% or 5.7 million were actively or recently employed and had not previously retired. Of these 5.7 million near-retirees, 71% received financial advice from at least one source, and 50% received advice from at least one source in the financial industry. However, 29% do not receive any advice.

These results come from two articles by Grant Schellenberg and Yuri Ostrovsky drawing on the results of the 2007 General Social Survey (GSS) on family, social support and retirement: "The retirement plans and expectations of older worker", which examines when individuals plan to retire, the certainty they have in their plans, and their confidence in their financial preparations, and "The retirement puzzle: Sorting the pieces", which examines the retirement advice and information they receive.

Source: Statistics Canada The Daily (September 9, 2008)

Canada: Survey Suggests Quebec Workers' Retirement Plans Not in Sync with Employer Needs for Older Workers

Even though organizations are facing labor shortages, 38% of Québec workers say they plan to retire before age 60, and 61% plan to retire between the ages of 55 and 64. These are some of results of a survey conducted by the Centre de Recherche sur l'Opinion Publique (CROP) for the Ordre des CRHA et CRIA du Québec (ORHRI). The survey showed that 15% of workers plan to retire at 65 to 69, 5% at 70 or older, and 5% with no plans to retire.

“In today’s environment, older workers represent a labour pool that employers can no longer do without. That’s why it’s crucial to review management practices to encourage willing pre-retirees to stay on the job as long as possible. Organizations need their valuable expertise,” explained Florent Francoeur, CHRP, Ordre President and CEO.

Workers were also asked about phased retirement, and 53% favored phased retirement, versus 41% who preferred complete retirement.

“The fact that only half the workers are considering phased retirement is of some concern. Yet people are now healthier and living longer than previous generations. So we have to create conditions to increase the numbers of workers who opt for phased retirement. For example, we could adjust benefits and compensation policies, and reorganize work within organizations,” added Francoeur.

Source: Ordre des CRHA et CRIA du Québec Press Release (May 22, 2008)

Canada: Survey Suggests Health Care Benefits Are Leading Enticement for Older Workers

According to a recent poll of Canadians over the age of 55, health assurances are the best thing an employer can offer older workers to keep them in the workplace. Specifically, Ipsos Reid reports that in a poll it conducted on behalf of Royal Bank of Canada, 60% of those surveyed said that extended health care benefits are the most important factor (top three mentions) in deciding to stay in the workforce. Trailing health care were flexible work hours (47%), having a guaranteed salary (34%), and phasing in the retirement process (24%).

With respect to flexible hours, the general consensus of those surveyed was a workweek running from Tuesday to Thursday, working nine to noon each day. In addition, workers would want an average of 6.4 weeks of vacation per year.

The survey also found that over 54% say they plan on working with their current employer past the age of 65, and, of those, 26% plan on working full-time for as long as possible, while another 36% would like to work full-time for a few years, before scaling back to part-time work.

Source: Ipsos Press Release (April 15, 2008)

Canada: Older Workers Helping Trend to Shorter Work Weeks

A study from Statistics Canada shows that fewer full-time Canadian workers are putting in long hours on the job, with older workers providing a significant part of the decline. According to "Hours polarization revisited", published in Perspectives on Labour and Income, in 2006, full-time workers put in 40.8 hours on the job on average, down from 41.5 hours in 1997, with men trending down from working long weeks (49 hours or more) and women trending up from short-term or part-time work to regular workweeks of 30 to 40 hours.

With respect to older workers (55 and above), the report found a shift away from working very long hours and and noted, in this group, the largest growth in working between 15 and 39 hours. This brought their standard workweek down 0.5 hours to 36.3 in 2006.

Interestingly, the increase in working 15 to 29 hours by older workers was for men only. While a larger proportion of older men worked 15 to 29 hours in 2006, fewer worked a 40-hour schedule (or 49 hours or more). This might indicate that older men are phasing into retirement as more of them cut back their hours or take on part-time hours after their career jobs are finished. In 2006, almost three in four men aged 55 and over worked part time out of personal preference compared with one in four men 25 to 54.

The survey also noted that older workers were becoming a larger segment of the workforce as their share of employment "increased from 10% in 1997 to 14% in 2006, while the share of core-age workers declined (from 75% to 70%) and the share of young workers remained at 15%."

Source: Statistics Canada The Daily (March 18, 2008)

Additional Source: Regina (CA) Leader-Post "Men working fewer hours: StatsCan" (March 18, 2008)

Canada: Median Age of Workforce Goes over 40 for First Time in 2006

Statistics Canada's review of the 2006 census shows that the median age of the labor force surpassed 40 years for the first time--rising from 39.5 years in 2001 to 41.2 years in 2006. The percentage of older employees also grew, so that, in 2006, workers aged 55 and older accounted for 15.3% of the total labor force, up from 11.7% in 2001.

Farmers continued to have the highest median age of all occupations in the country: 52 in 2006; up from 51 five years earlier. Farmers and farm managers aged 55 or older in 2006 accounted for 42% of the total in the occupation. The occupations with the next highest median age were real estate agents and property administrators, followed by ministers of religion, bus drivers and other transit operators, senior managers in health, education, social and community services, and senior government managers.

Source: Statistics Canada "Canada's Changing Labour Force, 2006 Census: Findings" (March 4, 2008)

Canada: What's in a Word? "Retirement" versus "Semi-Retired"

While Canada’s boomer population may be redefining what retirement means, survey by the Investors Group found that 91% do not object to the use of the word "retirement." However, while a similar number (92%) of retired Canadians are receptive to being called "retirees," only 45% of Canadians who are nearing traditional retirement years (those aged 55 plus) want to be called a "retiree."

When working Canadians were asked if they would eventually refer to themselves as “working part-time” or “being semi-retired” (as they reduced their work week in anticipation of formal retirement), half (49 per cent) said they preferred the word ‘semi-retired.’

Canadians in mid-life are less likely to identify themselves as being semi-retired. Forty-five per cent of Canadians aged 55+ prefer the word “semi-retired,” a term favoured by a majority (54 per cent) of younger Canadians under the age of 35.

As for actual retirement plans, the survey found that 19% of Canadians plan to retire between the ages of 55 to 59, 20% plan to retire between the ages of 60 and 64, 30% say they will retire at age 65 or older, and 26% do not know when they will retire.

Source: Investors Group Media Release (January 3, 2008)

Canada: Study Presents Value of Partnership between Small Business and Older Workers

According to a study conducted by Canadian Federation of Independent Business (CFIB), small business and older workers form a valuable partnership in dealing with the skills and labour shortage in Manitoba. CFIB reports that the study--"Small Business & Older Workers--shows that almost half of small businesses employ at least one older worker over the age of 60 and are actively taking steps to retain them.

The steps taken by small business to retain older workers include allowing greater flexibility with hours, reducing the physical demands of the job, offering part-time or job sharing options, and allowing unpaid time-off for activities/volunteering. The report's conclusion states:

Concern over the shortage of qualified labour among small business owners in Western Canada will likely continue for many years. While there is no silver bullet solution to this challenge, one solution is to improve the participation rate of older workers, to encourage older workers who have already left the workforce to return and to maximize the contribution of older workers in the workforce from a small business perspective.

Source: Canadian Federation of Independent Business
Media Release (December 6, 2007)

Canada: Workplace Institute Announces Winners of Top Employers of Older Workers

Workplace Institute announced its winners of its 2008 Best Employers Award for 50 Plus Canadians. The nine companies chosen on the basis of a written application and the results of an in-depth interview were HSBC Bank, Merck Frosst, Stream, EDS Canada, Wal-Mart Canada, Home Instead Senior Care, Metasoft Systems Inc., and Catholic Children’s Aid Society of Toronto.

"This year’s winners realize that boomer and veteran workers are the key to weathering talent shortages and are taking some novel approaches to attracting and retaining 45+ employees,” says the Workplace Institute’s Barbara Jaworski, founder of the awards and author of KAA-BOOM! How to Engage the 50-Plus Worker and Beat the Workforce Crisis. “The judges felt these organizations had found ways to meet their business and mature workforce needs by using strategies in one or more of the areas of career development, retention, recruitment, workplace culture/practices, management practices, health support, retirement/retiree practices, benefits, pension and/or recognition.”

Source: Workplace Institute Press Release (November 21,2007)

Canada: Alberta Solicits Feedback on Aging Workforce

The Alberta Government has launched a public consultation on aging workforce, giving Albertans a chance to share their feedback on the issues and opportunities related to Alberta’s aging workforce. The consultation runs until December 14 and results will be compiled into a summary report to support the development of future policies.

According the consultation--"Alberta's Aging Workforce", Alberta and British Columbia are both facing labour supply challenges that are expected to intensify in the coming years; in Alberta, workers aged 45 and over account for more than one-third of the workforce. An accompanying discussion document ("Mature Workers in Alberta and British Columbia: Understanding the Issues and Opportunities") includes information from 14 large employer and labour groups plus small and medium-sized businesses in Alberta and B.C. This document is intended to be a resource for employers and policymakers in the public and private sectors, and it provides "a profile of mature workers in Alberta and B.C., factors that influence work decisions, and approaches taken by various stakeholders, governments and countries in response to the labour market challenges of an aging workforce."

Source: Government of Alberta News Release (October 23, 2007)

Other Sources: Edmomton Journal "Reports promotes keeping older workers on job" (October 23, 2007)

Canada: Federal-Provincial Partnerships To Help Retrain Unemployed Older Workers

The Canadian Deparemtn of Economic Development and British Columbia signed the Canada-British Columbia Agreement on the Targeted Initiative for Older Workers (TIOW). This agreement will allow British Columbia communities to design and deliver projects and services that will help unemployed older workers retrain for new careers. It is anticipated that these community-based projects will help at least 1,200 workers in British Columbia to upgrade their skills, benefit from job counseling, and gain work experience.

Similarly, the Governments of Quebec and Canada will jointly contribute $568,000 to facilitate the reintegration into employment of older workers in the Centre-du-Québec region who have been affected by plant closures or downsizing, particularly in the furniture and clothing industries. According to the estimates of Emploi-Québec, which manages the Targeted Initiative for Older Workers, this amount will help to reintegrate 72 older works into employment over the next few months.

Source: Government of Canada News Release (October 11, 2007); News Release (October 11, 2007)

Survey: Talent Gap Widens as Workforce Ages in G7 Countries

According to a study conducted by Towers-Perrin on behalf of AARP, as the number of workers reaching traditional retirement years increase in the G7 countries, the marketplace is experiencing a decline in the number of skilled younger workers available to fill in the ranks of those retiring. Thus, suggests AARP, employers must end age discrimination in the workplace if countries and employers are to be best positioned to thrive in the global economy tomorrow.

The study--International Profit from Experience--was released in advance of a conference on the same sponsored by AARP, in partnership with the European Commission, the Business Council for the United Nations and Nikkei. Among the survey's key findings:

• Age discrimination is the single largest barrier for those 50+ who want to continue working past their anticipated retirement age, with at least 60% of employees 50+ in each G7 country viewing age discrimination as the primary barrier to securing new jobs;
• Older workers in the G7 countries want to continue to work on average an additional 5 years;
• Surges of immigration and productivity that might offset the anticipated decline in skilled workers are unlikely to occur; and
• Allowing employees to continue working past their traditional retirement age will not only allow older workers to remain in their careers and stay active, but will have a positive impact on an employer’s bottom line.

Line Vreven, Director of AARP International, says that “While the survey clearly identifies the talent gaps emerging within G7 countries, the responses by employers do not sufficiently address this challenge.” In addition, those "nations working to actively retain older workers and are providing incentives, rather than deterrents, to their continued employment, will reap economic gain in the long-run.”

An executive summary of the full 124-page report is also available.

Source: AARP Press Release (September 25, 2007)

Canada: Older Workers Staying in the Workforce Longer

According to a new study published by Statistics Canada, older Canadian workers are staying in the workforce longer and, as a result, may be dampening the threat of a sudden and severe labour shortage as baby boomers retire.

According to the article--"Participation of older workers", in the August 2007 issue of Perspectives on Labour and Income--by Katherine Marshall and Vincent Ferrao, an estimated 2.1 million individuals aged 55 to 64 were either employed or looking for work in 2006, more than double the total in 1976. Additional highlights include:

• The main thrust behind the upward trend is women's labour force participation rate, which rose from 38% to 62% between 1976 and 2006 for those aged 55 to 59, and from 24% to 37% for those aged 60 to 64.
• One in 4 older workers is self-employed and 1 in 5 works part time. Part-time work is one of the few job characteristics that is notably different for older and core-aged workers (those aged 25 to 54), suggesting transitional changes before retirement.
• Two-thirds of older workers who work part time do so from choice compared with only 28% of core-aged, part-time workers.

Source: Statistics Canada The Daily (August 24, 2007)

Other Sources: CTV.ca "Baby boomers staying in workforce longer: study" (August 24, 2007)--followed by posted comments

Canadian Surveys Show that Attention to Health Policies Can Keep Older Workers on the Job

Derek Sankey, writing for CanWest News Service, picks up on two recent surveys to point out that "tweaking health-care benefit plans could help retain experienced workers for longer, yet most companies plan to reduce those benefits in coming years."

The first survey--the "The sanofi-aventis Healthcare Survey 2007"--reports that about two-thirds of workers aged 55 or older are "very likely" or "somewhat likely" to continue working or return to the workforce after retirement if their employers would offer health benefits that continue into retirement. However, the second survey--conducted by Hewitt Associates--shows taht 57% of organizations plan to reduce post-retirement health-care benefits over the next three years.

However, according to Cathy Course, a senior benefits consultant for Hewitt Associates in Calgary, emerging trends in health-care benefit plans would suggest taht there are ways to combat the increasing costs associated with such a large of number of workers exiting the workforce and wanting extended health benefits, with flexibility being a core concept.

Source: Saskatoon Star Phoenix "Health benefits worker-retention issue" (August 18, 2007)

Canada: Calgary Chamber Recommends Changes To Encourage Older Workers

The Calgary Chamber of Commerce has recommended changes to the Canadian Pension Plan, Old Age Security, and RRSP programs to remove disincentives and entice older workers to continue in the labour force. The recommendations were made as part of a submission to the Federal Expert Panel on Older Workers.

According to Heather Douglas, President & CEO of the Calgary Chamber of Commerce, older workers represent a significant source of underutilized talent and labour supply in the Canadian economy, but the federal government retirement programs do not reflect current and future demographic, retirement and life expectancy realities and create disincentives for older workers to participate in the labour force. The Chamber's submission to the Expert Panel--"Older Workers: Amending Federal Government Retirement Programs to Tap Into an Underutilized Pool of Labour Supply"--recommended several changes that have the potential to encourage 80,000 additional older Albertans to remain in the labour force:

• expanding the age range at which people are eligible to access their Canada Pension Plan benefits from 60-70 to 60-75;
• amending the Old Age Security program to encourage the most highly skilled and experienced Canadians to continue working after age 65;
• working with the provinces to develop harmonized and flexible part-time pension policies that provide incentives for Canadians to gradually transition out of the labour force after age 65.

Source: Calgary Chamber of Commerce News Release (July 30, 2007)

Canada: Analysis of Age and the 2006 Census Released

According to Statistics Canada, data from the 2006 Census shows that the number of seniors aged 65 years and over surpassed the 4-million mark for the first time and that the working-age population (15 to 64 years) is becoming increasingly older. As a result, the proportion of senior citizens has increased from 13.0% in 2001 to 13.7% in 2006--an increase that can be seen at the national level as well as in every province, territory and census metropolitan area (CMA) in the country.

In addition, the report--"Portrait of the Canadian Population in 2006, by Age and Sex, 2006 Census"--shows that there are barely enough young people entering the working age group to replace those approaching the age of retirement--between 2001 and 2006, the population aged 15 to 24 increased by only 5.3%; for each person leaving the working age group, there was just over one individual entering it.

Source: Statistics Canada The Daily (July 17, 2007)

Canada: Recommendations in Quebec To Stop Encouraging Early Retirement and Pushing Normal Retirement Age to 67

According to an Economic Note published by the Montreal Economic Institute, economist Norma Kozhaya, ending the encouragement of early retirement right away and gradually pushing back normal retirement age from 65 to 67 are among the measures needed to reduce the impact of aging on Quebec's public finances as well as to ease labour shortages. The Note--"The retirement age in Quebec: A worrying situation"--concludes that “it is essential to start the necessary reforms right away before demographic phenomena lead to lower economic growth that will reduce wealth creation in Quebec.”

The focus of the Note was the fact that the aging of the population and the impending mass retirement of baby boomers are already starting to create labour shortages and will soon cause weaker growth in the economy. The goal of the recommendations was to suggest a number of moves that could be considered to raise the participation rate of older people on the job market and to reduce the negative economic effects of aging while helping maintain the viability of existing retirement plans.

Source: Montreal Economic Institute Media Release (June 18, 2007)

Canada: Report on Workforce Development Challenges in Ontario

Colleges Ontario's "2007 Environmental Scan" provides an analysis of economic trends in Ontario and suggests there is an urgent need for a comprehensive skills and workforce development strategy to increase the province’s competitiveness.

Among other things, the report says that by 2015, the number of young people will begin to decline resulting in a greater demand on people already in the workforce to have skills and knowledge that are current and effective. The industries to be hit first by the declining youth population will be those employing young workers, such as accommodation and food services, retail, information, and culture and recreation. On the other end of the age spectrumm, sectors that employ older workers, including health care, manufacturing, energy, and the public sector will be hit by the retirement boom as the first of the baby boomers reach the age of 65 years starting in 2011.

“As the economy relies more heavily on older workers, skills upgrading and retraining for existing workers will continue to grow in importance,” said [Linda Franklin, President and CEO of Colleges Ontario]. “The fact is too many people don’t have the right skills for the jobs that are available. And those working will require continuous education and re-training throughout their lives to update and transform their skill sets to use new technology and meet new needs.”

Source: Colleges Ontario News Release (June 19, 2007)

Canada: Forecast for Labor through 2031

Statistics Canada has published labor forecasts through 2031 showing that Canada's labor force will continue growing, but the overall participation rate will fall sharply, in the wake of the nation's low fertility and the retirement of millions of baby boomers.

According to the study--"Labour force projections for Canada, 2006-2031", among other things, the number of workers for every retired person aged 65 or older would be reduced by half between 2005 and 2031, falling from about four in 2007 to slightly more than two in 2031. In 1981, this ratio was more than five workers per inactive senior. In addition, the proportion of the labour force aged 55 and older is expected to reach between 18% and 20% in 2021, about double what it was during the mid-1990s.

The study also found that that the rapid aging of the labour force will continue to have an impact on the labor market at least until the early 2020s.

Source: Statistics Canada Daily (June 15, 2007)

Canada: Expert Panel Releases Discussion Paper on Older Worker Challenges and Policy Issues

Following up on the appointment of the Expert Panel on Older Workers, Erminie Cohen, Chair of the Panel, launched a public discussion paper, which highlights the main issues older workers face in the
labour market and will serve as a vehicle for the Panel's discussions and consultations. The Panel encourages people to read the document and send in written submissions; guidelines for submissions are available on the Panel's website.

The purpose of the paper--"Older Workers: Challenges and Policy Issues"--"is to provide Canadians with an opportunity to consider the labour market issues affecting older workers today and in generations to come. It is designed to support a dialogue with the provinces and territories, as well as with a broad range of stakeholders and academics. In so doing, it provides details on labour market pressures, and on this group of workers, particularly displaced older workers, and asks questions of which the answers could help frame the development of future policy initiatives."

Source: Expert Panel on Older Workers Press Release (March 9, 2007)

Canada: Central Bank Governor Urges Flexibility on Employers for Retaining Older Workers

David Dodge, Governor of the Bank of Canada, speaking to the Calgary Chamber of Commerce urged flexibility on employers in light of changing demographics that mean that there will be fewer and fewer young people in the labour pool to draw upon. Specifically, employers must learn to concentrate on making the most of experienced and trained workers and remove any barriers to their continued participation.

This means that we, as employers, have to be more flexible in setting up work schedules. It means that we, as employers, must look at the redesign of pension plans. It also means that we, as employers, must put more effort into upgrading skills and increasing our openness to hiring mature workers. And it means that we, as employers, have to put more emphasis on mentoring programs, so that younger workers can benefit from the skills and experience of older workers, ensuring that intellectual capital is not lost.

Source: Bank of Canada Speeches (March 8, 2007)

Canada: Minister Appoints Expert Panel to Study Labour Market Conditions that Affect Older Workers

Monte Solberg, Canada's Minister of Human Resources and Social Development, has announced the appointment of an expert panel to study labour market conditions affecting older workers. The Panel will look at potential measures to help older workers, including improved training and enhanced income support, such as early retirement benefits.

"The fact is that seniors and older workers have helped build this country," said Minister Solberg. "Our population is ageing and we are facing labour shortages. Now is the time to look at issues faced by older workers and make sure that they have the knowledge and tools they need to contribute to a strong Canadian work force."

The objective of the panel is to undertake a feasibility study on older workers as outlined in Budget 2006: "...conduct, in partnership with provinces and territories, a feasibility study to evaluate current and potential measures to address the challenges faced by displaced older workers, including the need for improved training and enhanced income support, such as early retirement benefits."

The panel, chaired by the Honourable Erminie Cohen, a retired Senator, is to provide a report on various matters outlined in a background statement, along with recommendations on potential government and stakeholder actions, to the Minister by the summer of 2007.

Source: Human Resources and Social Development News Release (January 23, 2007)

Canada: New Strategy Sought To Keep Older Workers Working

According to a story by Gloria Galloway for The Globe and Mail, policy poapers from Canada'a Department of Human Resources and Social Development suggest a new strategy to help older workers stay on the job until they are ready to retire, including restructuring the country's inflexible pension plans. Documents that are part of a four-pillared "Framework for Action for Older Workers" urge the national government to "provide more flexible work to retirement transitions by removing the structural and financial disincentives to continue working" and advocate the creation of a "comprehensive range/suite of employment assistance measures for older workers" including more training and employment services.

The documents, which were obtained by Ottawa-based researcher Ken Rubin, say an increased presence of older Canadians in the work force is key to the country's future prosperity. Because of the aging population, the per capita GDP is expected to fall off sharply, beginning in about 2025. "Optimizing older worker participation is the best means to offset labour market declines."

Source: The Globe and Mail "Help older workers keep working, Ottawa told" (December 22, 2006)

Canada: Ontario's Ban on Mandatory Retirement Begins December 12, 2006

Ontario's "Ending Mandatory Retirement Statute Law Amendment Act, 2005", which was enacted by the legislative assembly in December 2005, takes effect on December 12, 2006. When the legislation takes effect, it will amend the Ontario Human Rights Code to protect people aged 65 and over from age discrimination for most employment purposes.

The Ministry of Labour has updated its FAQ: Mandatory Retirement and also maintains a Mandatory Retirement website.

Source: Ontario Ministry of Labour News Release (November 14, 2006)

Other Sources: Hamilton Spectator "Mandatory retirement soon to be obsolete" (November 28, 2006)

Canada: Survey Finds Age Biggest Source of Discrimination in Hiring

A survey of Canadian employees conducted by Kelly Services has found that age has become the biggest source of prejudice. According to an article on the survey in The Globe and Mail, the survey found that 14.6% of respondents said they'd faced age discrimination when applying for a job, with that figure rising to 63.6% among those aged 55 and older.

The age discrimination result is troubling because there have been continuing efforts to ban it through legislation and human resources policies in workplaces, says Judy Cutler, director of government relations for Canada's Association for the 50-Plus (CARP).

The results show that attitudes have not caught up with the reality that Canada is facing a crisis as older workers leave the work force, and not enough younger workers are coming up through the ranks to replace them, she says.

Source: Globe and Mail "Ageism top bias in job hunt, poll finds" (October 25, 2006)

Canada: Retired Persons Association Becoming Advocate for Hiring Older Workers

Daniel Drolet, in his weekly Ottawa Citizen column on retailing, writes about how hiring older workers may be the solution to the growing labor shortage for retail businesses. Judy Cutler, director of government relations for CARP, says "We have older workers who want to work. Why not embrace their expertise?"

In many ways, retail sales jobs seem perfect for aging workers who crave social interaction, don't want a full-time job, like the idea of being able to leave for a few months to go south in winter, and who, if they have pensions, don't necessarily have to worry about the benefits.

However, Ms. Cutler says embracing older workers is going to require a change in attitude on the part of employers.

"People still have trouble getting jobs because of their age," she said, adding that these days, an older worker is anyone over the age of 45. "We hear from people who are cutting their resumes in half to make it look like they are not old enough to have done everything they have done."

CARP now devotes part of its website to helping older workers find jobs. "We're not advocating for mandatory employment," said Ms. Cutler. "We don't expect that all older workers will want to work. But I'd like to see more inter-generational interaction and activity. I think it's part of a holistic approach to accepting the aging population.

Source: Ottawa (CA) Citizen "Older workers could be new answer to labour shortage" (September 15, 2006)

Canada: Conference Board Report on Aging Workforce and Employers

The Conference Board of Canada has issued an executive action report finding that almost 80% of Canadian organizations believe they will face the consequences of an aging workforce within the next five years, but few are taking steps now to address impending retirement-induced labour shortages. Although one source of labour is older workers, the report--"Too Few People, Too Little Time: The Employer Challenge of an Aging Workforce" [free registration required]--found that recruitment and retention programs and policies targeted at mature workers are applied inconsistently.

“Canadian organizations are aware that by 2015 there will not be enough qualified people to go around. For the most part, they are doing little to tackle the problem,” said Owen Parker, Senior Research Associate. “Employers will have to develop more effective ways of managing their aging workforce to maintain operational continuity.”

Half the respondents indicated that their organizations devote little or no effort to retaining their own older workers, and few employers are looking to attract retirees who may be looking for new employment possibilities.

Source: The Conference Board of Canada News Release 07-10 (July 27, 2006)

Canada: Survey Finds Older Canadians Working More

Statistics Canada has released a report--General Social Survey on Time Use, Cycle 19: Aging Well: Time Use Patterns of Older Canadians--finding that more individuals aged 55 to 64 were working later in life and spending less time in leisure activities in 2005. In fact, both men and women were spending roughly an hour a day more in paid work than they were in 1998.

Older Canadians--those aged 65 to 74--devoted much less time to paid work than they did when they were 55 to 64, with men devoting about an hour a day on average to paid work, well below the 4.4 hours for the age group 55 to 64. The survey showed that time use patterns within this age group did not change substantially between 1992 and 2005, with only a small increase in the amount of paid work.

Source: Statistics Canada The Daily (July 28, 2006)

Other remarks: Ottowa Sun (July 27, 2006); Canadian HR Reporter (July 28, 2006)

Canada: Professor Urges End to Mandatory Retirement

Terry Gillin, a sociology professor at Ryerson University in Toronto, urged delegates at British Columbia Premier Gordon Campbell's Council on Aging and Seniors' Issues to work towards total elimination of mandatory retirement. In calling on the province to change the Human Rights Code, which currently prohibits age-related discrimination for those 19 or older and less than 65, he said that forcing people to retire from their jobs when they turn 65 amounts to age discrimination and affects the poor, immigrants, and women the most.

Source: 680 News "Mandatory retirement means poor, immigrants, women lose out" (June 27, 2006)

Canada: Job Growth for Older Workers

In reporting that employment in Canada increased for a 13th consecutive year in 2005, Statistics Canada also reported that the employment situation for older workers aged 55 and over has become increasingly brighter. In 2005, 29.9% of this population had jobs, up from 29.0% in 2004, the ninth consecutive annual increase in their employment rate since hitting a low of 22.0% in 1996.

The report also shows that more workers are nearing retirement than ever before. In 2005, an estimated 3.6 million workers were within 10 years of (or older than) the median retirement age of 61. They represented 22.1% of the total, up from 10.3% in 1986.

Source: Statistics Canada News Release (June 1, 2006)

Canada: Pension Crisis Deepens

According to the 3rd annual pension risk survey by The Conference Board of Canada and Watson Wyatt Worldwide, 61% of Chief Financial Officers (CFOs) say the pension crisis in Canada is widespread and likely to persist beyond the next few years. In addition, only 19% said the crisis is widespread but unlikely to become permanent--down from 23% in 2005 and 39% in 2004, and just 15% said the pension situation is isolated to relatively few organizations.

Source: News Release Conference Board of Canada (May 2, 2006)

Canada: Business and Labor Form Alliance To Tackle Challenges Arising from Aging Workforce

As part of a country-wide initiative called the “Workplace Partners Panel” created as a response to labour and business concerns about the need for a collaborative approach to address Canada’s labour market challenges, leaders of Nova Scotia's labour and business sectors are meeting to discuss potential solutions to Nova Scotia’s labour market challenges arising from an aging workforce.

Rick Clarke, President of the Nova Scotia Federation of Labour, and Elizabeth MacDonald, former Vice-President of Enterprise Services for Emera Inc., are chairing a “dialogue session” with the province’s business and labour, community, and government leaders, including representatives from the education sector, immigration settlement, youth and economic development.

“What we want is to help identify and document Nova Scotia and the Atlantic region’s best thinking on the issue of skills needs in the context of an aging workforce,” adds Liz MacDonald. “This is a critical issue for Atlantic Canada as the region deals with an aging population, a low birth rate, and the loss of young people leaving the region in search of other opportunities.”

Source: News Release Workplace Partners Panel (April 18, 2006)

Canada: Statistics Show a New Retirement

According to New Frontiers of Research on Retirement, a new book released by Statistics Canada, broad social changes are forcing Canadians to rethink their traditional ideas about retirement. Looking at the effect of the baby boom generation's pending retirement, the report centres on four main themes:

• Gender differences: Women are much more likely than men to see retirement as involving more than just getting a pension or stopping paid work.
• Joint retirement: The growing number of women with substantial pension benefits is having a major impact on decisions about retirement in Canadian families. For more and more couples, decision-making is becoming much more complex.
• Maintaining a standard of living in retirement: Amid growing uncertainty about their future financial security, an increasing number of people do not know when they will retire. Others have simply delayed their retirement.
• Flexibilty of retirement paths as some workers opt for self-employment: With a massive wave of retirement looming among baby boomers, the labour supply from older workers will grow in importance. Many will likely choose to become self-employed, making flexible retirement paths more prevalent.

Source: The Daily Statistics Canada (March 27, 2006)

Canada: New Statistics Relating Aging, Health and Work

Using data from the 2003 Canadian Community Health Survey, Statistics Canada has released a study showing that while the people in Canada's labour force who were within 10 years of retirement in 2003 were generally in good or excellent physical and mental health, nearly half a million (19%) individuals aged between 50 and 69 had already left the labour force because of health-related reasons. Individuals not working because of ill health rated their physical and mental health as fair to poor, with chronic conditions such as arthritis and rheumatism, high blood pressure and back problems being common concerns.

Their loss is important because of rising concerns over a labour shortage in coming years as the baby-boom generation nears retirement and the growth in Canada's population slows. In 2002, 20% of workers were within 10 years of the median retirement age, double the proportion 15 years earlier.

Source: The Daily Statistics Canada (February 22, 2006)

Canada: Mining Industry Faces Serious Worker Shortage from Comng Retirements

According to "Prospecting the Future: Meeting Human Resources Challenges in Canada’s Minerals and Metals Sector", the Canadian mining industry will need up to 81,000 new people to meet current and future needs and to fill positions vacated by retirees. The research was conducted by Mining Industry Training and Adjustment Council – Canada (MITAC), and its key findings suggest "the industry could lose up to 40 per cent of the existing workforce in the next ten years. More than half of its current workforce is eligible to retire in the next five to ten years taking with them an average of 21 years of mining sector experience each. The largest percentage of workers planning to retire within the next ten years is in the skilled trades group."

Source: News Release Mining Industry Training and Adjustment Council - Canada (August 23, 2005)

Canada: Older Workers With High Job Stress More Likely To Retire Earlier

According to an article by Yosie Saint-Cyr in HRinfodesk, a recent study--"Job strain and retirement" by Martin Turcotte and Grant Schellenberg, published in the July 2005 Issue of Perspectives on Labour and Income by Statistics Canada indicates that job strain, caused by a combination of a heavy workload, time constraints, conflicting demands and lack of control, may be an overlooked factor in an employee’s decision to retire. Several other studies have already documented this negative relationship. "This study found that many workers who felt stressed and dissatisfied with their job felt they could not retire soon enough, while others delayed retirement for the simple reason that they enjoyed their work (because they were able to balance demands with the power to make decisions)." The National Population Health Survey examined whether older workers (aged 45 to 57 in 1994) who experience high job strain will be more likely to retire than those who do not feel the same pressure at work. The study found that, between 1996 and 2002, older workers in managerial, professional or technical jobs with high job strain were much more likely to retire early than those with low job strain. However, for sales, services, clerical and blue-collar occupations, job strain was not related to retirement.

Source: "Link Between Job Strain and Retirement" HRinfodesk
(July 2005)

Canada: Ontario Introduces Legislation To End Mandatory Retirement

Ontario Labour Minister Chris Bentley announced that the McGuinty government was introducing legislation that would end mandatory retirement and provide greater fairness and choice for workers aged 65 and older. The legislation proposes to amend the Ontario Human Rights Code, which currently does not protect people aged 65 and over from age discrimination for employment purposes, to only permit mandatory retirement where it can be justified on "bona fide occupational requirement" grounds determined under the Code (that is, where there is a requirement or qualification necessary for the performance of essential job duties).

Source: News Release Canada NewsWire Group (June 7, 2005)

Canada: Depression Rising in Over-50 Set of Employees

Although younger employees--the Generation Xers and the Millennials--are the ones reporting the highest rates of depression and anxiety symptons in Canada according to a study ("Workplace Mental Health Indicators: An EAP’s Perspective") from WarrenShepell Research Group, depression symptoms dipped rose for employees 50 years of age and over (three-year average 6.91%). Anger symptoms decreased with age--1.55% for employees over 50 years old. According to a story, in the Globe and Mail:

The [depression] figure for the over-50 set "runs counter to the traditional notion that people become more serene and confident in their work as they get older," says Rod Phillips, president and chief executive officer of Warren Shepell, a Toronto-based provider of employee assistance programs.

Behind that figure, Mr. Phillips says, is a growing demand for older workers to adapt to the increasing pace of change in work, as well as the trends for them to start families or shift careers later in life, boosting their stress.

Source: News Release WarrenShepell (February 15, 2005); Article Globe and Mail (February 25, 2005)

Canada: CARP Accepting Nominations for Best Employes for 50+

CARP, Canada's Association for the Fifty-Plus and FGI announce the 2nd Annual Best Employers for 50-Plus Canadians Award to spotlight organizations that use innovative workplace solutions with their mature workers to support business goals while creating job satisfaction in Canadian organizations. Applications will be accepted until June 30, 2005 amd are available at www.50plusbestemployers.com.

Source: News Release Canada Newswire Group (February 15, 2005)

Canada: Home Depot Canada and Canada 50+ Associations Form Partnership

The Home Depot Canada and CARP, Canada's
Association for the Fifty-Plus have formed an exclusive hiring partnership. The hiring relationship with CARP allows The Home Depot to reach Canada's 50+ population and expand its workforce, as well as better meet the diverse needs of its
customers. It will also benefit from CARP's expertise in understanding exactly what kind of employment opportunities best suit the 50+ prospect, making it a mutually rewarding relationship for both the retailer and the associate. This follows the creation of a similar partnership between The Home Depot and the AARP started in February 2004 in the United States.

Source: News Release Canada Newswire Group (February 15, 2005)