Earlier this month Statistics Canada told us something we had already figured out – the unemployment rate was up – not a lot – to 7% from 6.8% last month. In Alberta the unemployment rate has risen to 6% up from 5.2% at the same time last year. 7% unemployment means that 1.35 million people who want to work do not have jobs.
Along with the national 7% unemployment rate we also have a national Job Vacancy Rate (the share of jobs that are unfilled) of 2.6% or roughly 400,000 jobs. We have a Dependency Rate (proportion of the population that is older than 64 and younger than 15) of about 47% – which means that we have 1.12 people of working age for every 1 person who is not.
Population projections indicate that at the end of 2015 or into early 2016 there will be more people in Canada over the age of 65 than there are under the age of 15. Our average age is 41.7 years old and we are getting older. Canada’s baby boom began in 1947 – our oldest boomers are about 16 months shy of turning 70. The youngest boomers, born in 1966 are turning 50 in 2016. The peak of the boom, born in 1959, will be turning 65 in 2024. Every year from now until then an increasingly large number of people will be leaving the workforce and there will not be as many new workforce entrants.
Today, 67% of all job openings in Canada require post secondary education and even though Canada is among the global leaders in higher education only 51% of working population between 25 and 64 have post secondary education. A major business concern expressed by Canadian CEOs is the challenge in finding and keeping the talent required for business success.
- An unhealthy unemployment rate coupled with a significant number of vacant jobs;
- The loss of knowledge and skills as the boomers leave the workforce and a smaller number of people who are and will be joining the workforce;
- the gap between the proportion of jobs requiring post secondary education and people who are acquiring it;
indicate a need for every organization to develop and implement a strategic approach to workforce management.