Changing Demographics and An Aging Population

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Population demographics in Canada has changed dramatically over the past 25 years and two distinct trends are clear: first, our adult population is aging rapidly. For the first time in the country’s history, the number of citizens over the age of 65 is greater than the number of teenagers under 15. This means that a significant gap is being created in the workforce. As the baby boomers retire, they leave empty desks and empty trade jobs. And while the current generation will be ready to fill these jobs eventually, at the moment they simply aren’t ready. Education takes time and so does job training.

The result? An employment gap that is growing larger every year.

The second trend in demographics is more widely known: immigrant numbers are on the rise and significantly so.

In 2014 for instance, Canada admitted over 250,000 new immigrants, enticing them with programs such as the Skilled Worker and Express Entry System. These programs exist for a reason but the fact that these numbers just aren’t high enough to fill the demographic gap. Immigration Consultant and Ashton College alumni Vitoria Correia elaborates: “the baby boomer generation is retiring and Canada needs more people to face an eventual shortage of workers. Yet, the government’s position has been very conservative in attracting foreign workers and its policies are to favor first those who are PR or Canadian citizens instead of attracting foreign workers.”

In other words, the gap is only going to get larger and Canada doesn’t have the numbers to fill it. A factor in this is that statistically, countries with high standards of living tend to follow a unique trend: lower birth rates, higher income, higher GDP, and an aging population. Japan is a prime example of this, it boasts one of the highest standards of living anywhere in the world and one of the oldest populations. And yet Japan has some of the lowest immigrant numbers in the world. Does this make Japan an outlier? Should Canada follow this model?

In a word, no. This is because Canada’s crisis of an aging population isn’t really a crisis at all. For a country as large as Canada, population numbers are staggeringly low. And being a resource driven economy, there’s no shortage of work for new immigrants, Provided they can get certified of course. “It just isn’t an inviting mechanism for people that wish to immigrate to Canada,” says Correia.

That said, it’s also important to put things into perspective. While Canada may have a large number of seniors, the number isn’t actually all that large when compared to countries like Japan and Norway and Britain.

Canada’s best known think tank, the C.D. Howe institute, reports that the influx of immigrants onto Canadian soil in recent years actually has almost no impact on offsetting or compensating for our aging demographic. Rather, they help to create jobs rather than fill pre-existing ones.

The solution? It seems that pushing back the mandatory retirement age to match the fact that people are living longer and healthier lives is a step in the right direction. Another option is to invest in programs and facilities for seniors. This creates new jobs that can be staffed as the younger generation matures. Or by immigrants.

The key then is generating an agreement within Canada.

Not an agreement of how many immigrants should be allowed in each year and not how many new jobs will be created as a result. No, the agreement should simply be on how much should be spent taking care of our aging population when it does retire and where these funds will come from.