Jakarta, CNBC Indonesia – Canada is currently suffering from the “apocalypse” of the workforce. This is because many workers in the country retire early.
The workforce is still growing in August. However, growth is down from the previous two months and remains more subdued
“Tens of thousands of people leaving their jobs … Much of this is related to the fact that more Canadians are retiring,” he wrote. Reuters citing data from Statistics Canada, Monday (12/9/2022).
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The record number of Canadians between the ages of 55 and 64 who pensions in the last 12 months have increased. This accelerated the mass exodus of Canada’s most skilled workers.
Economists say this causes companies to rush for human resources. This threatens to reduce productivity which has already collapsed in the country.
“We had known for a long time that this wave was coming, that we would step in right now,” said Jimmy Jean, chief economist of the Desjardins Group.
“And it will only increase in the years to come,” he added.
“The risk we run, and it has already been seen in some sectors, is that people leave without enough young workers to take over. So there is a loss of human capital and knowledge,” he explained.
So what happens?
Many attribute it to the pandemic. During the outbreak, retirement rates fell as many Canadians decided to stay longer in their jobs.
With the lifting of Covid-19 restrictions, many are rushing to “make up for lost time”. They choose to travel and spend more time with their families.
These departures, analysts add, are reducing the workforce. This will weigh on economic growth at a time when the central bank is aggressively raising interest rates to counter rising inflation, increasing fears of the economy falling into recession.
The health sector, for example, was the hardest hit. Since May, Canada has lost 34,400 jobs in the healthcare sector.
“It’s a huge problem right now, because we have so many who retire unexpectedly,” said Cathryn Hoy, president of the Ontario Nurses Association.
The transport sector is the same. Many drivers are aging too, after two years of the pandemic.
“More and more drivers are aging and as a result (they) are retiring or thinking about a different lifestyle,” said Tony Reeder, owner of Trans-Canada College, a career college that trains truck drivers.
“Without trucks and people driving trucks … the goods will be stored in ports and warehouses, not reaching their destination where they can be consumed,” he added.
Citing the complete data from Statistics Canada, there are 307,000 Canadians who quit their jobs to retire in August. This increased by 31.8% from the previous year and 12.5% more than in August 2019.
Please note that 620,000 Canadians entered the age category 65 and over during the pandemic. This represents a 9.7% increase in that population group.
Previously, the problem of labor shortages also occurred in Australia. Kangaroo country even loosened permanent migration rules to 195,000 by this financial year, an increase of 35,000 people.
Meanwhile, the United States is also grappling with the “great resignation” phenomenon. Quotes Fox NewsAnd CNNalthough employers offer bonuses and high salaries, the jobs offered never get staff.
This is especially true in restaurant, shop and aviation jobs ranging from baggage handler to pilot and flight attendant. The shortage of workers due to the aforementioned increase in inflation puts businesses in danger of closure.
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