Labour Market in Canada is Dominated by Baby Boomers
According to the latest census report, most of the Canadian employers are turning 55 in full-time work. Seniors headcount in that age group went up by 24,000 in April which is greater than their children meanwhile statistics revealed that very few youngsters aged 15- 24 are searching for work.
What does this imply?
Baby boomers have plenty of jobs & they keep working
Apart from holding a lot of full-time jobs, they even enjoy job stability. Approximately 2/3rd Canadians in the post-war generation entered 50’s are working for the same organization or firm for last 14 years and more.
“Since the job duration is long-term their working life is very stable” compared to workers below 35 who experienced job instability. The report says around half of the boomers did not undergo even a single layoff over a period of 29 years.
Don’t know why labor force contribution among youngsters keeps decreasing
Due to unsecured & unsafe working conditions, Canada’s millennials are staying out of the workforce in larger numbers. Labour force contribution rate among aged 20 to 24 decreased to 75% from 78% in 2004. Porter says, here the ambiguity is whether more people are staying in school for a longer duration or many of them are failing in their attempts to get an employment.
Bank of Canada governor has noticed that 120,000 people between 15 and 25 have fallen out of the workforce recently. We are aiming for high economic growth in order to bring back more young Canadian’s to work.
Good thing is working baby boomers will contribute to the growth of the economy
Canadian’s who struggle to get a job often blame boomers, but there is a connection between old workers and younger ones not finding jobs. Most of the old generation stick to the organization for the longer time so they have a higher chance of being promoted to the senior positions which is slightly frustrating for youngsters.
Though the country has most of the gray-haired working labor, it is good for the economy. As growth from labor force contributes to 2/3rd economic growth, economists fear that this growth will be impacted when baby boomers retire. But when this happens, they leave the room for a considerable chunk of Canada’s young generation to grow.