Why reskilling older workers is Canada's missed opportunity, but could be a boon for staffing firms.

Workforce development

Canada, like much of the developed world, is on the brink of a demographic transformation that will reshape its workforce and economy for decades to come. The arithmetic is inescapable: people are living longer, fertility rates are falling, and the number of older people per working-age Canadian is set to surge. By 2060, Canada’s old-age dependency ratio is forecast to jump from 0.32 to 0.50 — meaning there will be just two working-age people for every person over 65.

This slow-burning demographic shift comes with predictable economic consequences. Fewer workers relative to retirees mean slower economic growth unless offset by productivity gains or by drawing more people into the workforce, especially those currently sidelined. For Canada, which already lags OECD peers in productivity, the stakes are high.

According to projections, the country’s employment-to-population ratio will shrink by almost 3 percentage points by 2060. Without intervention, this alone is expected to shave 0.4 percentage points off annual GDP per capita growth. Under current trends, Canada’s growth could languish at just 0.41% a year — barely half the OECD average of the past two decades.

Yet this narrative of decline need not be inevitable. The answer lies in a labor market asset hiding in plain sight: older workers.

A Business Case for Longevity

Far from being a drag on growth, older workers are already a rising economic force. In Canada, their income growth has outpaced that of younger cohorts. In 1995, Canadians aged 25-34 earned slightly more than those aged 55-64; by 2019, that trend reversed, with older workers now enjoying higher household incomes. In other words, older workers aren’t just staying on the job longer — they’re thriving.

But challenges remain. Literacy and information-processing skills among older Canadians are declining relative to younger generations. Participation in training is also strikingly low: just 36% of workers aged 55-65 engage in any form of non-formal learning, compared to 62% among those aged 25-54. This gap is the largest in the OECD.

The implications are clear: unless Canada invests in upskilling its aging workforce, it risks locking out a growing share of potential workers from the evolving demands of a digital and green economy.

An Opportunity for Staffing Firms

For staffing firms, this demographic reality opens both a challenge and a market opportunity. With employers facing labor shortages — particularly in sectors less exposed to trade volatility, like healthcare, education, and public administration — older, skilled workers represent a talent pool that remains vastly underutilized.