Why rethinking retirement might help solve Canada's demographic crunch

Aveleigh Kyle retired as an intensive care (ICU) nurse nine years ago. It was a difficult job and the night shifts were taking their toll.

She stayed in the field part time, but now in her 60s — and having spent most of the COVID-19 pandemic helping administer vaccines — she's back in the ICU at the Kingston Health Sciences Centre.

Her arrangement with the department means no more nights and flexible shifts, but Kyle's there with her experience when new grads at the teaching hospital go through some of the profession's most intense moments for the first time.

She recently found herself supporting a nursing grad through the process of removing a ventilator from a patient who was nearing death.

"Not only do you have to do the physical part of it, but you're also surrounded, often by 10 family members that are having the worst day of their life."

"The next time it's going to be — not easier — but now she knows a little bit of what to give at what time so the patient's not struggling. If the patient is struggling, the family struggles worse."

Nursing is among the professions most impacted by Canada's aging workforce and a spate of recent retirements that are difficult to replace. It's emblematic of a demographic crisis impacting Canada that is sometimes called "the grey wave."

Part of the solution, according to labour market experts, lies in finding ways to change the culture around aging in the workforce and making it easier for older workers to find fulfilling work and flexible hours.

"We knew this was coming. This was not surprising," said Gillian Leithman, an assistant professor of management at the John Molson School of Business at Concordia University. Leithman also consults with companies on personnel training.

"We're definitely seeing a shift in the market because it's a pain point now for [employers] that really don't have the luxury to not think about it."

In 2022, Canada's economy was grappling with surging inflation and was struggling to fill nearly a million job vacancies. That coincided with a record number of retirements among workers aged 55-64.

Canada's economy added jobs in April, as the country's population growth hit record levels due to the federal government's plan to increase international migration. That said, a recent economic report from TD said, immigration alone, "doesn't necessarily fully solve for the matching and integration of people desired by businesses."

"When you're talking about replacing somebody who is experienced, knowledgeable and good at their job and replacing them with a novice, somebody who's at the beginning of their career [that's] going to have a very different effect than replacing them with somebody who has experience," Leithman said.

Employment lawyer Camille Dunbar points out that while mandatory retirement has largely been phased out in most of Canada, capping pension contributions at 65 or expensive health insurance rates in that age bracket might be driving people from the workforce.