Skilled labour shortages likely as boomers retire

August 30 2001 - The present shortage of nurses may be just the start of a national labour crisis. This is the conclusion of a new report from the Columbia Foundation and the Canadian Council on Social Development (CCSD). A generalized staff shortage or several isolated shortages of skilled employees is likely with the imminent retirement of baby boomers as early as 2006.

Building Bridges Across Generations in the Workplace has been written by Sylvain Schetagne, Senior Research Associate at the CCSD. She points out that very few people in government, industry and employment generally are sufficiently aware of how serious the problem may prove to be.

In fact, baby boomers are 'Canada's demographic heavyweights'. In fact half the Canadian workforce in the year 2000 were between 35 and 54 years old. This compares with just over a third in 1975. Decreased fertility rates ar contributing to this aging of Canada's workforce. And the oldest of the baby boomers have reached 55 - now regarded as the age of early retirement.

Mass retirement of baby boomers in the next few years could lead to a number of possible effects highlighted in the report, including:

- a general labour shortage, or a shortage of skilled labour;
- a decrease in the productivity and competitiveness of Canadian companies as a result of the loss of experienced and competent personnel;
- increases in social costs for those left behind due to the smaller number of workers;
- a drop in levels of financing for social programs.

"This report tells us that when older workers leave the labour market, they take with them a considerable cache of knowledge and valuable experience - much of it essential to the smooth functioning of their organizations," said Marcel Lauzière, Executive Director of the CCSD. "On a positive note, the report underlines the potential benefits of building productive bridges between generations in the workplace over the next decade."

"There is a real risk of losing much of this treasury of skills and experience, if steps are not taken to ensure a smooth transition to the next generation," said Tobi Davidge, Executive Director of the Columbia Foundation. "It is necessary that there be a better transfer of knowledge and skills acquired on the job, if efficient operations are to be maintained."