There are many warnings regarding the impact of the aging labor force in Canada. Furthermore, a new report says that the working population in Alberta will be young and become more diverse in the future. Additionally, two major cities of Alberta enjoy a high participation rate of the labor force amongst major population centers. This is based on the report of Statistics Canada.
The calculation of this rate comes from the percentage of people having an age 15 and above who work or are looking for work. Moreover, the rate in Alberta was 72 percent in 2017. There is also a projection that it will be 71 percent in 2036. The national rate will decline to 62 percent in that year. The reasons are aging of the population and a large section of baby boomers entering the retirement years. Furthermore, the effects of massive retirement will not be equal across the country. There is a growing gap between rural and urban areas, where the young countrymen and immigrants prefer to settle in major cities. Moreover, smaller communities experience more people entering the old age. Areas lying outside the major cities of Ontario have a projection of labor force participation falling to 58 percent in 2036.
In Atlantic Canada, comprising of rural areas and small towns the rate will decline to 53 percent. Additionally, in Alberta, the rate outside Calgary and Edmonton will be 68 percent in 2036. In fact, in 2017, 31 percent of people who worked in the metropolitan areas of Calgary and Edmonton had their roots outside of Canada. Additionally, by 2036, this will grow to 43 percent. The increase in immigration and the migration of youths from other regions will partially offset the impact of the aging population.
By 2036, the ratio of participants in the labor force to non-participating seniors will be three in Montreal, nearer to four in Toronto, and almost five in Calgary and Edmonton. Experts feel that these projections are not surprising. The arrival of immigrants in the cities has a pattern across the country. They are attracted to employment opportunities, facilities, and amenities.
Additionally, the Diasporas from their country have an appeal and are found in urban centers. Outside of Calgary/Edmonton, 12 percent of the working population was born overseas in 2017. That will increase to 18 percent in 2036. There is a note of care here because when the participation of the labor force goes up and there is a failure of absorbing the additional workers, the unemployment is likely to go up. People who search for work, and if they do not find jobs or find low-paying/part-time work there is a limited impact of the economic benefits. Finally, there is a need to utilize additional work-force and create more jobs. Full-time jobs are extremely good for any economy.
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