Saturday, June 16, 2007

Canada: Forecast for Labor through 2031

Statistics Canada has published labor forecasts through 2031 showing that Canada's labor force will continue growing, but the overall participation rate will fall sharply, in the wake of the nation's low fertility and the retirement of millions of baby boomers.

According to the study--"Labour force projections for Canada, 2006-2031", among other things, the number of workers for every retired person aged 65 or older would be reduced by half between 2005 and 2031, falling from about four in 2007 to slightly more than two in 2031. In 1981, this ratio was more than five workers per inactive senior. In addition, the proportion of the labour force aged 55 and older is expected to reach between 18% and 20% in 2021, about double what it was during the mid-1990s.

The study also found that that the rapid aging of the labour force will continue to have an impact on the labor market at least until the early 2020s.

Source: Statistics Canada Daily (June 15, 2007)

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