Boomer retirements are creating a labour shortage across the country

For many, many years predictions of a “grey tsunami” of boomer retirements were linked to expected increases in the costs of healthcare and government retirement benefits.

But those retirements are also causing a labour shortage, the Canadian Press (via Global News) reports, that is now upon us.

The story, written by CP’s Amanda Stephenson, reports that the current wave of boomer retirement parties is making some employers quite nervous.

Dan Gallagher of Fort McMurray, Alta.-based Miskew Group tells CP “I take a walk around our shop, and around our field service workforce, and I can clearly see that demographic. It’s aging.”

Miskew, the article notes, already has been having labour shortage problems and has had to recruit from as far away as Australia.

“The ratio of apprentice to older worker here has been so low for so long that there just isn’t the bench strength to offset the people who are leaving,” Gallagher tells CP.

The article notes that “a looming wave of retirements” by baby boomers, those born between 1946 and 1964, has long been predicted by experts, and is now creating a mass exit from the workforce.

The size of the workforce has been trending downward since 2000, the article reports, but the “grey wave…. is now crashing ashore.”

As of the second quarter of 2022, there were over a million job vacancies in Canada, the article notes. And while the participation rate amongst employed Canadians has nearly returned to pre-pandemic levels, the stats suggest that the exit of older workers is driving the labour shortage.

Citing recent research from Scotiabank, the article reports that “the decline in overall workforce participation that does exist is entirely due to Canadians aged 60 and above exiting the workforce. That means the real root of the current problem is Canada’s aging population, and it has broad implications for the country’s economy.”

Patrick Gill of the Canadian Chamber of Commerce tells CP that 36 per cent of Canadian businesses are reporting labour shortages, a figure that jumps to 45 per cent in the manufacturing sector and 58 per cent in food and accommodation.

“It translates to everyone working more hours, and that ultimately affects quality of life. It means slower growth, and it’s also a factor in supply chain delays,” Gill states in the article.

The article concludes by saying that a younger workforce is now “a new reality,” and employers are going to have to go that extra mile to attract and retain new talent.

“Labour is going to be very difficult to find and employers are going to have to work hard to attract employees,” the University of Toronto’s Rafael Gomez tells CP.t

This is a very interesting report.

For younger people, this labour shortage represents a time of employment opportunity not seen for many decades, where there are suddenly a lot of good jobs out there to be filled. Let’s hope employers take a page out of the past — we are thinking the post-war boom, but even into the ‘60s and ‘70s — and begin to offer more and better retirement programs to attract new talent.

If you don’t have a workplace retirement savings program and are on your own for retirement savings, take a look at the Saskatchewan Pension Plan. It’s open to any Canadian with registered retirement savings plan room. Let SPP do the heavy lifting of retirement investing and asset growth, while you focus on making regular contributions to your future. When you too are ready to depart the workforce, your SPP account will be there for you, ready to be converted into retirement income. Check out SPP today!

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By Sheryl Smolkin

For the last week, the images I cannot get out of my mind are the pictures and videos of Fort McMurray burning. Every week on savewithspp.com we post blogs that discuss retirement savings and how readers can fund their life after work. But the major asset most of us are depending on to augment government benefits is the equity in our family homes. Imagine having that wiped out in minutes as you flee to safety.

The only good news has been the incredible bravery and grace of everyone involved from first responders to neighbors to governments at all levels. Also, as the Globe and Mail reports, insurance companies across Canada have already begun deploying mobile response units and flying in personnel to the province from across the country to prepare to assess the damage and issue emergency cheques.

Money will never replace photos albums or family heirlooms, but it will go a long way to help people rebuild their lives. That’s why this week we are going to feature a few things you need to know about insuring your home and your possessions against loss or theft.

In a Toronto Star article, Home insurance: 10 things you need to know, Andrew Wicken says the cost to rebuild your home plays a big role in determining the amount you pay for home insurance. Check with your broker or agent to see if you have guaranteed replacement coverage. This ensures you will receive the amount that it actually costs to replace your home and not the amount on your policy. Not all policies have this coverage and rules vary across insurance companies.

What Every Canadian Should Know About Home Insurance Policies posted on InsuranceHotline.com points out the importance of “loss of use” coverage. If your home is uninhabitable after a claim, then loss of use insurance will help your family manage while your home is being rebuilt or repaired. Hotel expenses, meals, and incidental expenses are covered by this portion of your home insurance policy, typically for a specified period of time or to a maximum dollar amount.

The Insurance Bureau of Canada reminds homeowners that it’s your responsibility to report any changes to your property. Contact your insurance professional before you:

• Renovate your home
• Install a pool or spa
• Set up a home-based business, such as a daycare
• Lease all or a portion of your property
• Purchase jewellery or art.

Keeping your insurance company informed with an accurate and up-to-date description of your home and contents can help speed up the claims settlement process after a loss.

The U.S.- based Hanover Fire & Casualty Insurance Company outlines some ways to save money on your home insurance. For instance things that might earn you a discount include:

• A home burglary alarm system
• Dead bolt locks
• Fire alarms and sprinklers
• Updated heating systems
• Updated wiring and electrical systems
• A home near a fire hydrant or fire department
• A home located near a police department
• Well-structured and maintained stairs, sidewalks, driveways, and entrances

And finally, MoneySense author Gabrielle Bauer describes Home insurance as defending your castle. When buying home insurance, she says you’re almost always better off using an independent broker who deals with a number of insurance companies, so he/she can get you the best price possible. Also, to keep your premiums more affordable, she suggests bundling your home and auto insurance policies together because it could cut 15% off your total bill.

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The Canadian Red Cross is accepting donations for the Alberta Fires Emergency Appeal. Ten banks in Canada are also accepting cash donations. All individual donations will be matched by the Government of Canada.