Canada has an impending workforce gap that will be hard to bridge using traditional measures.
Workforce expansion has been an especially strong driver of growth in Canada. But with twice as many employees aged 55+ today as in 1997, this will change in coming decades.
To grow our workforce at the same rate moving forward, we’d have to: double our immigration rate (despite already sitting near the top when it comes to new immigrants per capita), eliminate the 7.5% female to male employment gap, raise the average retirement age to 67, and more.
It is hard to imagine Canada solving all these problems simultaneously in the near future. But if we don’t, labour growth could fall to just 25% the rate of the last 15 years.
Meanwhile, each member of our workforce will also need to support more dependents. The ratio of non-workers to workers in our economy is expected to increase from 0.95 to 1.12 over the next 15 years, a shift that will have deep and costly consequences.
Chosen excerpts by Job Market Monitor. Read the whole story at BCG Centre for Canada’s Future: Prosperity@150: Delivering big ideas for growth