Thursday, November 14, 2019

The Boomer Bust

As Canada’s population ages, so does its workforce. It’s not a disaster—yet—but it will be if we don’t do more to accommodate baby boomers.

Guide Magazine

Older workers—those aged 55 and older—made up 21 percent of the workforce in 2018, more than double in 1996 (10 percent) and similar to the percentage of workers aged 25-34. While the workforce is aging across the board, some occupations have experienced this more than others. In occupations that are shrinking due to outsourcing or automation, such as agriculture and manufacturing, the number of older workers makes up a large percentage. For example, 42 percent of industrial sewing machine operators are over age 55, and the number of workers employed in this occupation has fallen 73 percent since 1996.

The healthcare and social assistance workforce is also aging, even though this sector grew by 68 percent between 1996 and 2016 and now employs 13 percent of all workers—more than any other sector. In 1996, less than 10 percent of registered nurses were over age 55. In 2016, 20 percent were. With our aging population requiring more care, front-line staff are feeling the strain (see page 14), especially as they themselves get older and are less able to handle the physical demands of the job.

Some occupations are growing exponentially faster than our population is aging. The number of new workers needed in marketing and public relations far outstrips the effects of our aging workforce. Between 1996 and 2016, these fields grew by 256 percent, while the share of older workers only grew from 8 percent to 13 percent.

It’s a similar story in computer and information systems. In professional occupations such as doctor, accountant, and lawyer, the aging workforce has been mitigated by the entry of more women into the field.

As baby boomers begin exiting the workforce in droves, they are leaving a massive hole in the workforce, both in terms of numbers and skills. In the next few years, it’s estimated that 400,000 workers will retire annually, with not enough young people to replace them. Older workers bring a wealth of experience and typically have strong leadership, mentoring, and communications skills. They are often detail-oriented and good at problem solving. Plus, they have invaluable organizational knowledge and life experience.

Some boomers are staying in the workforce for various reasons. But often, those staying are looking to cut back and find work that gives them flexibility to travel, visit their grandkids, and enjoy other hobbies. Employers must be prepared to meet their needs if they hope to retain them.

“Staying competitive in a world of unprecedented longevity demands that organizations adopt new strategies to engage with older talent,” according to Deloitte Insights. “Traditional assumptions—that learning ends in one’s 20s, career progression ends in the 40s, and work ends in the 60s—are no longer accurate or sustainable. Rethinking workforce strategies across multiple generations to account for longer lives will require open minds and fresh approaches.”

The key to retaining older workers is providing flexible work schedules. Employers also need to provide more training—both for new workers entering the workforce and for older workers who need to learn how to use and adapt to new technologies.

By taking a multifaceted approach that embraces flexibility and training, employers can avoid the coming boomer bust. But they don’t have much time.

“I wouldn’t call it a disaster,” says David Dodge, former governor of the Bank of Canada. “But we’re not doing as well as we should be.”

Sources: Statistics Canada, APN Consulting, Deloitte Insights, Canadian Business

The Boomer Bust

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