Tuesday, April 5, 2005

SPOTLIGHT: Labour market

Older workers staying on

THE AGING of the post-war baby boomers has been the dominant demographic force in the labour market since 2000. The fastest-growing group was comprised of individuals aged 55 to 59, whose numbers rose 4.7% in 2004.

Since 1998, the number of people aged 55 and over has increased 19%. The increase has been driven by a huge gain in the group aged 55 to 64 resulting from the leading edge of the baby boomer generation.

Conversely, the number of people in the prime working group aged 25 to 44 edged down for a seventh straight year.

Evidence suggests that the approach of boomers to old age will be quite different from previous generations. For example, the labour force participation rate of people aged 55 to 69 shot up from a low of 36% in 1996 to a record high of 47% in 2004.

The increased participation rate for boomers is part of a marked trend toward older people remaining in the labour force.

In the 1990s, older men were pushed out because industries such as resources and construction were declining. Since then, however, these industries have been on the rebound, which has encouraged older individuals to stay working.

For more information, contact Philip Cross (613-951-9162), Current Economic Analysis.

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© 2004, 2005 Statistics Canada.