Home > Media Coverage > Western News, September 23, 2004

No skills crisis from aging workforce

By Jim Anderson

A looming general shortage of skilled worker as a result of an aging population is an overblown threat, says a study by Western researchers.

Despite dire predictions, there is no evidence Canada faces such a shortage of skilled workers, says a new report from Canadian Policy Research Networks by sociology researchers Julie Ann McMullin and Martin Cooke, with the collaboration of Rob Downie.

"We conclude that workforce aging is not the only, nor necessarily the most significant determinant of skill shortages," says McMullin.

The authors identify four key factors affecting skill shortages:

• The age structure of the current workforce;
• The time required for training;
• The geographic mobility of workers;
• Working conditions that affect attracting and retaining workers.

"While these factors may combine to create certain skill shortage 'hot spots' in particular industries or occupations, talk of a general skills 'crisis' sparked by an aging workforce is inappropriate," says McMullin. "Wage levels, working conditions and training policies may be just as influential."

For example, nursing occupations do not exhibit the oldest workforces, but are among the most likely to experience very high cumulative retirement rates in the next decade. Other occupations may have older profiles, but have a higher average retirement rate.

The paper recommends several options to increase the ability of labour markets to meet the demand for skills:

• Immigration policies targeting skills in short supply;
• Encouraging higher participation in the workforce by under-represented groups, such as aboriginal people and single mothers;
• Removing barriers to training and labour force participation;
• Promoting phased retirement and workplace flexibility to provide long participation of older workers;
• Promoting life-long learning and active aging, including training throughout working life and promotion and advancement for older workers;
• Encouraging employers to recruit an age-balanced workforce.

Original Citation Information:

Anderson, Jim. (2004, September 23). No skills crisis from aging workforce. Western News, p. 9.