Between the prime working years and the “golden years” lay the in-between years—statistically speaking, those aged 55 and older still participating in the labour force.
Much like Canada’s population, Canada’s labour force is aging. Indeed, among businesses, the share of workers aged 55 and older doubled in two decades, rising from 9.3% in 2001 to 18.8% in 2022.
Canada’s manufacturing industry is aging at a faster pace than the construction industry
Over a two-decade period, the manufacturing sector saw the largest increase in the share of workers aged 55 and older. In 2001, 9.8% of workers in this sector were in that age group. By 2022, that share had reached 24.2%—almost two and a half times its 2001 level. Of note, from 1996 to 2018, the number of younger workers in the manufacturing and utilities sectors declined, while the number of older workers more than doubled.
By contrast, the construction sector saw the smallest increase, with the share of workers aged 55 and older rising from 10.2% in 2001 to 17.7% in 2022.
Atlantic Canada has the largest share of “in-betweener” workers
While the share of workers aged 55 and older is rising across Canada, some regions are experiencing this demographic shift much more rapidly than others.
Atlantic Canada recorded the largest increase in the share of “in-betweener” workers, rising from 8.6% in 2001 to 22.1% in 2022. By contrast, British Columbia saw the smallest increase, from 9.9% to 17.6% over the same period.
Small firms more likely to have in-betweener workers than medium and larger firms
In all firms large and small, fewer than 1 in 10 employees were aged 55 and older in 2001. By 2022, this share had risen by 10.1 percentage points to 19.8%, while in medium and large firms, the share rose 9.2 percentage points to 18.2%.
Opening the door to further research
While older workers bring significant value to the workplace through their experience, institutional knowledge and soft skills, they may lag younger workers in areas like technological skills. They may also be more vulnerable to chronic health conditions that could negatively affect firm performance.
The first step in assessing how workforce aging affects firm performance is to measure how the age distribution of workers varies across firms. This provides the foundation for understanding how shifts in age composition translate into firm‑level performance.
The paper “Workforce aging in Canada: Insights from firm-level data” is the first to examine the age of workers across all Canadian firms. It lays the groundwork for future research on how an aging workforce may affect productivity, innovation and technology adoption, and other economic outcomes in the country.
Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).