Thursday, February 23, 2012

More older workers entering Canadian labor market

In Canada older workers are entering the labor market in increasing numbers since the economic recovery began in 2009. Toronto Dominion economist Francis Fong noted that Canadians over 60 accounted for almost one-third of net job gains.

Even those over seventy gained. Employment among persons over seventy increased by a whopping 37 per cent with 55,000 jobs added. Even during the depth of the recent recession over 100,000 net jobs were added in the 60 plus age group.

During the same period those 59 and younger lost a half million jobs. Fong claimed that growth of jobs for older people has been common across advanced economies since 2000. Most of these jobs are in the service industry with the largest concentration in retail.

Many of these older workers have part-time jobs or are self-employed. Fong found that up to two-thirds of these older workers worked part-time by choice a sharp contrast with younger workers. Only 28 per cent of workers aged 25 to 54 worked part-time by choice.

However Fong said that many older workers may be working because they have not set enough money aside to retire fully. Fong said:"This is a trend that could become more prominent in the coming generations. Savings rates among current middle-aged and younger Canadians are extremely low relative to previous generations and financial returns are not expected to reach the same heights as in the 1980s and 1990s."

Government pensions will probably be cut back as well as governments try to trim deficits on the backs of pensioners. Governments are trying hard to lower expectations. For more see this article.

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