Home > Media Coverage > The Ottawa Citizen, August 30, 2004

A solution to the skills shortage: let older workers stay on job

Kathryn May

Canada can avoid a labour shortage as the population ages by tapping into an often overlooked source of skills - its own aging workers.

A newly released study by the Canadian Policy Research Networks debunks dire predictions of looming skills shortages as unfounded and overblown. Co-author Julie McMullin argues Canada could have plenty of workers, as long as employers and policy makers change their attitudes about older workers and encourage them to stay on the job.

"There's still a stigma attached to getting old and the perception is older workers have trouble learning new technology and skills, they're not as fast and productive and don't fit into the workplace like younger workers", Ms. McMullin said.

"But those are stereotypes and perceptions that are not based on any evidence or fact," Ms. McMullin said.

The study concludes age will have an impact on Canada's labour supply, but only when combined with other factors, such as working conditions, wages, education, training, mandatory retirement and the willingness of workers to move. Taken together, she says, Canada will face shortages or "hot spots" in some occupations or regions of the country, but aging alone will not cause the widespread shortages many predicted.

"We conclude that workforce aging is not the only, nor necessarily the most significant determinant of skill shortages," says Ms. McMullin. "Clearly, labour-market policies addressing skill shortages need to look beyond the fact of an aging workforce to consider industry and occupation-specific issues and the whole complex of factors involved."

One way to encourage workers approaching retirement to keep working is phased-in retirement, such as job-sharing, reduced hours of work without loosing benefits or doing the same job contract. Another option is eliminating mandatory retirement, as proposed in Ontario.

Ms McMullin, who is also working on a federally funded project looking into workforce aging and the new economy, says research shows there are big advantages to employing the older worker, whom government and researchers describe as age 45 and older. They're as productive as younger workers and tend to take less time off. They are often more dedicated, experienced, stable and more likely to stick with the same employer.

Ms. McMullin said the C.D. Howe Institute, whose studies conclude aging will lead to a skills crisis, found workers between 50 and 60 years old were the most productive.

As a result, Ms. McMullin said, Canada could make big inroads in productivity if employers could keep their employees working until they're at least 60 years old. The average Canadian retires at 61.5. If that continues, GDP per capita could decline by more than 15 per cent by 2050. Increasing average retirement age by just one year could boost GDP per capita by 3.5 per cent by 2050.

Ms. McMullin said youth-obsessed baby boomers, who are partly responsible for the stereotypes of aging, will probably be the ones who redefine what an "older worker" is as they stay in the workplace longer. Already, the word older is being dropped and replaced with "mature" or "experienced" worker.

But the notion of an "older worker" varies from industry to industry. Judges, lawyers and doctors are seen to be in their prime well into their 50s and not even considered older until they hit 65. Compare that to the technology industry, where Ms. McMullin said a high-tech worker is considered expendable at age 30 and washed up at 40.

These stereotypes creep into the workplace, she said. Despite the high skills of many older workers, they face higher unemployment than younger workers and could leave the job market altogether after becoming unemployed.

Stories abound about employers weeding out older workers by running job ads that limit the amount of experience required for the job. That means anyone with 25 years' experience who applies for a job requiring 10 years will be automatically screened out. Any older workers who withhold their age or years of experience to get their foot in the door often find they are never called back for the second interview.

"I think older workers are more valued in organizations if they already have a job in an organization than if they have lost their jobs and are trying to get in," said Ms. McMullin.

There are several strategies to help meet the labour demand as baby boomers retire, she said. These include:

-Immigration that targets skills in demand;

-Encouraging more aboriginals and single mothers into the work force;

-Promoting life-long learning and training;

-Recruiting an "age-balanced workforce" for companies.

Original Citation Information:

May, Kathyrn. A solution to the skills shortage: let older workers stay on job. The Ottawa Citizen, August 30, 2004.