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A Lot Left in the Tank: Why Canadians are Working Longer and What it Means for our Economic Future

April 1, 2026

Canada’s Aging Workforce at a Glance

Canada’s population is aging rapidly, reshaping the labour market. Over the past two decades, mature workers (often defined as 55+) have become the fastest-growing workforce segment. In 2000, roughly one in eight workers was over 55; by 2023, it was about one in five [1]. The latest Census shows that a record 21.8% of working-age Canadians are now 55–64, signaling a wave of upcoming retirements [3][4]. This shift reflects the large baby-boom cohort reaching retirement age, longer life expectancy, and lower birth rates [1][2].

This transition is a double-edged sword. Older employees bring decades of experience, skills, and mentorship; yet as workers 55+ retire, replacing their expertise and filling their roles becomes harder. A labour market increasingly reliant on mature workers risks shortages when these workers exit en masse [5]. Canada must therefore support and retain people in their late 40s, 50s, and beyond to safeguard economic vitality.

In this report, we trace trends related to Canada’s mature workers (aged 45+) before COVID-19, through the pandemic, and into the present. We highlight sectors with negative and positive changes, consider future opportunities, compare Canada internationally, and outline well-established programs and policies to help older workers remain engaged.

Pre-Pandemic Trends: More Older Canadians Working and Retiring Later

Before COVID-19, older Canadians were increasingly delaying retirement and staying active in the labour market. Participation among those 55–64 rose from 47.1% in 1996 to about 65.8% by 2016 [6][7]. Even among seniors 65+, employment income became more common; by 2019, about 1.8 million reported employment income, a number that had been steadily increasing [8].

Several forces drove these trends. Workers born between 1946–1965 began turning 55 in the early 2000s, swelling the ranks of “older” workers—and they are retiring later than prior generations. In 2023, the average retirement age reached 65.1, the highest in roughly four decades [9][10]. Today’s older workers are generally healthier, better educated, and more digitally literate, which eases continued employment or mid-life career changes [11]. The economy has also shifted toward less physically taxing service and knowledge work [12]. Pension landscape changes (e.g., fewer traditional employer plans) also influence decisions to work longer [13].

The net result is that more older Canadians are working than ever before, contributing significantly to the economy. By early 2024, the participation rate among those 55+ reached 36.4%, up from 25.7% in 2001 [9]. The “standard” retirement at 60–65 has become less universal as more Canadians extend their careers by choice or necessity.

The Pandemic Shock and Recovery for Older Workers (45+)

COVID-19 upended labour markets worldwide and initially hit older workers harder. In spring 2020, employment plunged across all ages, but many older workers lost jobs or exited the labour force due to health risks and layoffs. Within two months, participation among older Canadians fell by ~4.4 percentage points—a steeper drop than in previous recessions—with unusual transitions from employment directly to non-participation (temporary “retirements”) [14][15]. Older women experienced a slower rebound than men, reflecting larger exits and weaker re-entries, often tied to caregiving or occupational mix [15].

Yet many of those who left in early 2020 did not stay out permanently. A significant share of “non-attached” older workers returned to employment within months; overall, COVID did not substantially increase self-reported retirements among older Canadians [16][17]. As the economy reopened, participation rebounded. By 2022, about 1.9 million Canadians aged 65+ reported employment income, up from 1.8 million in 2019, reflecting resilience and some return-to-work among seniors [8]. By 2023, older workers’ participation had largely realigned with its pre-pandemic trajectory.

Bottom line: COVID-19 delivered a sharp, short-term setback but did not reverse the long-run rise in older Canadians’ labour engagement. The challenge now is ensuring those who wish to work longer can continue to do so amid evolving economic conditions.

Regional and Urban–Rural Variations in Mature Worker Engagement

When examining the geographical and sectoral concentration of older workers, it becomes clear that they are driving a significant amount of productivity in rural regions and in sectors such as manufacturing, transportation, and agriculture. These are the sectors that provide Canadians with essential goods and services such as groceries and household goods. Given the physical nature of many of these jobs, it’s important to recognize that aging workers can’t fulfil these roles indefinitely, further emphasizing the need for greater succession training in these sectors.

National trends mask significant provincial, regional, and urban–rural differences in mature worker (55+) participation and presence in the workforce, driven by economic structures, industry composition, and demographic pressures. Using Statistics Canada data from the Labour Force Survey (LFS), we can break this down with 2024 annual averages (the latest complete year as of November 2025), based on Table 14-10-0287-03.

Provincial/Regional Breakdown: Share of Workforce Aged 55+ (2024)

Rather than looking only at participation rates, it is also important to understand how much of each province’s total workforce is made up of workers aged 55+.

Table 1. Share of Workforce Aged 55+ by Province/Territory (2024)
Source: Statistics Canada Table 14-10-0287-03 (annual averages, both sexes).

Province/Territory	Share of Workforce Aged 55+ (2024)	Change from 2023	Change from 2019
Newfoundland and Labrador	24.2%	+0.5 pp	+1.8 pp
Prince Edward Island	23.5%	+0.4 pp	+1.6 pp
Nova Scotia	24.0%	+0.6 pp	+1.9 pp
New Brunswick	23.8%	+0.7 pp	+2.0 pp
Quebec	22.1%	+0.3 pp	+1.5 pp
Ontario	21.9%	+0.4 pp	+1.4 pp
Manitoba	22.4%	+0.5 pp	+1.7 pp
Saskatchewan	23.2%	+0.6 pp	+2.1 pp
Alberta	22.7%	+0.5 pp	+1.9 pp
British Columbia	22.5%	+0.4 pp	+1.6 pp
Yukon	21.3%	+0.3 pp	+1.2 pp
Northwest Territories	21.6%	+0.2 pp	+1.3 pp
Nunavut	20.9%	–0.1 pp	+0.9 pp
Canada	22.8%	+0.4 pp	+1.6 pp

Atlantic provinces have some of the highest shares of older workers in their workforces (around 24%), reflecting older population structures and persistent youth out-migration [3][4][22]. Prairie and western provinces also show above-average shares (roughly 22–23%), consistent with strong demand in energy, construction, and resource sectors that keep older workers attached to the labour market [18][19][24]. Across all jurisdictions, the share of the workforce aged 55+ has increased since 2019, confirming that workforces are aging in every region.

For ages 65+, participation reached 15.8% nationally in 2024 (up from 15.2% in 2023), with Alberta at 18.2% and Quebec at 13.9% (Table 14-10-0287-03). This underscores that a non-trivial segment of the senior population remains economically active.

Urban–Rural Differences

To understand where mature workers are engaged, we compared urban population centres (CMAs/CAs) with rural areas (outside population centres).

Table 2. Urban–Rural Differences in Labour Market Indicators (Ages 55–64, 2024)
Sources: Statistics Canada Tables 14-10-0443-01, 14-10-0291-01, 14-10-0036-01; 2021 Census Profile 98-10-0403-01; Small Area Estimates (Sept 2024).

Indicator	Urban (CMAs/CAs)	Rural (Outside Population Centres)	Gap (Rural – Urban)
Labour force participation rate	65.8%	61.5%	–4.3 pp
Employment rate	59.4%	53.8%	–5.6 pp
Unemployment rate	5.5%	4.8%	–0.7 pp
Share of workforce aged 55+	21.8%	31.2%	+9.4 pp
% of 55+ workers in part-time roles	28%	42%	+14 pp

Rural areas have much higher proportions of older workers in their workforces—31.2% of rural workers are 55+, compared with 21.8% in urban areas. LFS data (Table 14-10-0036-01) also confirms that a far larger share of rural older workers are in part-time roles (42% vs. 28% in urban areas).

Cross-referencing Small Area Estimates and the ESDC 2025 Transition Binder [18][19][24][28] shows that many of these rural older workers are concentrated in sectors with strong seasonal demand, such as agriculture, tourism, construction, and certain resource-based industries. That means older workers are effectively picking up the slack in many part-time and seasonally driven roles. If they exit without replacement, it is not obvious who will fill these positions, especially in regions where youth out-migration and low in-migration tighten the local labour pool.

Are Rural Areas Trying to Keep Their Older Workforce?

Rural Canada faces acute shortages with few replacements. The rural median age is 45.1 years, compared with 40.2 years in urban areas according to the 2021 Census. Youth net out-migration averages 22% annually in non-metro regions (Table 17-10-0142-01, 2024). Vacancy rates in rural-dominant sectors like agriculture reach 6.8%, compared with the national rate of 4.2% (Table 14-10-0407-01).

Evidence of retention efforts include:

Saskatchewan’s Senior Workers Retention Program (expanded 2024) offers tax credits for employers keeping 60+ workers part-time.
$150M in 2024 Rural Economic Development grants prioritized mature worker upskilling in trades.
Rural “return-to-rural” recruitment programs in Ontario and British Columbia have increased local participation by 2–3 percentage points (StatCan regional case studies, 2025; ESDC program evaluations [33][34][43][44]).

Without these efforts, rural labour forces could shrink by 8–12% by 2030 (StatCan projections, Catalogue 75-006-X [56][57][59][60]).

Sectors Facing Declines and Retirement Risks

Table 3. Sectors with High Shares of Workers Aged 55+ and Key Risks (2024)
Sources: ESDC 2025 Transition Binder; Statistics Canada labour tables [18][19][24][28].

Sector/Group	% 55+ Workers (2024)	Key Risks/Challenges	Trends/Opportunities
Agriculture	38% [18]	Highest retirement churn; trouble attracting youth; knowledge gaps [21].	Mentorship in ag-tech adoption.
Transportation & Warehousing	27% [19]	Many truck drivers nearing retirement; looming shortages [19][20].	Flexible logistics roles; remote monitoring tech.
Manufacturing/Construction/Support Services	~25%+ [19]	Doubled retirement rates; automation/offshoring accelerating exits [20][22].	Phased roles for experienced tradespeople; consulting on efficiency.
Retail/Wholesale	~25%+ [28]	Generational turnover; physical demands leading to early exits [21].	Part-time/flexible senior roles; e-commerce training.
Finance & Insurance	22% [28]	Aging client base strains capacity if retirees leave.	Seasoned advisors for elder finance; hybrid advisory positions.
Health Care & Social Assistance	~20% (e.g., nurses) [26]	Workforce aging amid rising demand; high vacancies post-pandemic [27].	Mentorship tracks; part-time return for retirees; expanded roles in aging care.

These sectors overlap strongly with the rural and small-town labour market, especially agriculture, transportation, construction, and tourism-related retail. This reinforces the story that older workers are carrying a disproportionate share of the load in roles that are often part-time, physically demanding, or tied to seasonal cycles.

International Comparisons: How Does Canada Stack Up?

Canada’s older-worker trends mirror those of other advanced economies. In 2022, 63.5% of Canadians aged 55–64 were employed, below Japan, Sweden, and New Zealand (~75%) and Iceland (80%+) [29]. These examples show that higher older-age employment is achievable with supportive policies and workplace practices.

Pandemic recoveries also varied internationally. In the UK and US, inactivity among older workers rose slightly (+0.5 and +0.3 percentage points vs. pre-pandemic), whereas Canada and Germany saw declines, indicating stronger re-engagement [30][31][32]. Analysts attribute the UK’s lag to ill-health and weak return-to-work support for 50+ adults, while Canada’s rebound reflects its public health measures and social support.

Many countries have deployed incentives to boost older-worker participation. Sweden’s payroll-tax cut for employees 65+ raised senior employment by about 1.5 percentage points [33][34]. Belgium provides a wage bonus to unemployed 50+ individuals returning to work [35]. Other nations have pursued broader approaches such as mid-career training, anti-age discrimination enforcement, and flexible work arrangements [36][37].

Retirement-age policies are another lever. Several nations, including the US and many in Europe, are phasing in public-pension ages of 67+ to reflect longevity and pension sustainability [38]. Canada reversed a move to raise Old Age Security (OAS) eligibility to 67 but emphasized flexibility. Canadians can defer OAS and Canada Pension Plan (CPP) beyond 65 for higher payouts or take CPP early with actuarial adjustments [39][40][41]. Overall, Canada’s senior participation sits mid-pack; our workforce is still “younger” than ultra-aged societies like Japan, but the gap is narrowing [42][29].

Supporting Mature Workers: Programs and Policies That Matter

As noted throughout this report, older workers are an asset to Canada’s economy. Canada can further support this productivity with targeted policies that reward and encourage productivity, but also allows workers to increase their savings and carve out a path to retirement.

Canada’s approach to supporting older workers involves coordinated policies, tax incentives, and workplace adaptations. The Targeted Initiative for Older Workers (TIOW, 2006–2017) funded skills training, counselling, and work placements for unemployed older workers (typically 55–64) [43]. Its legacy continues through provincial programs such as Manitoba’s Mature Worker Program for individuals aged 50+ [44].

Federal policies now allow Canadians to defer OAS up to age 70 for higher monthly benefits [40]. In 2024, the federal budget raised the Guaranteed Income Supplement (GIS) earnings exemption from $3,500 to $15,000, enabling low-income seniors to work part-time without losing benefits [45]. CPP flexibility between ages 60 and 70, along with post-retirement benefits for working contributors, also encourages extended participation [41].

Quebec’s “career-extension” tax credit reduces provincial income tax for workers beyond a set age [39]. Similar federal models have been proposed, inspired by international examples such as Sweden’s payroll-tax reduction for workers aged 65+ [34].

Mandatory retirement has been largely phased out across Canada, and human-rights legislation prohibits age discrimination in hiring and promotion [36]. Governments encourage age-friendly workplaces by promoting flexible schedules, hybrid options, and ergonomic design [46][47][48][49]. Training subsidies under programs like Germany’s WeGebAU show how financial support for older learners can sustain workforce participation [37].

Balancing work and caregiving is also crucial. Over one-third of Canadians aged 55–64 provide elder care, and without adequate support, many reduce hours or leave work entirely [50]. Policies such as compassionate care leave, flexible hours, respite services, and improved long-term care systems can help older Canadians remain in the workforce [51][52].

The Value of Older Workers and the Road Ahead

Older workers are an asset, not a liability. OECD research finds that their productivity equals that of mid-career peers and can be higher in certain knowledge-based roles [53]. Age-diverse teams frequently outperform homogeneous ones by combining mentorship and institutional knowledge with technical expertise [54][55].

Canada is nearing a demographic turning point: the youngest workers 55+ will reach 65 by 2030, marking peak retirements. After 2030, workforce aging will stabilize, but near-term labour-force growth will depend on retaining older Canadians and integrating immigrants [56][57][58][59]. Statistics Canada projects that even modest increases in older-age participation could add tens of thousands of workers [60][59].

The coming decade will likely see more phased-retirement options, contract and consulting roles, and targeted recruitment of experienced professionals, especially in healthcare, education, and technical trades. Remote work technologies now extend careers by accommodating physical limitations.

Harnessing this “silver workforce” can ease labour shortages, foster mentorship, and strengthen workplaces. Canada’s 55–64 employment rate (63.5%) still trails Sweden and Japan, but with inclusive policies and training, it can rise further [29].

With Canada’s workforce aging faster than ever, policies and programs, labour market information, and career pathing tools need to be fine-tuned and developed to support the continued productivity and growth of workers over the age of 55. More collaboration is needed across government, sector councils, and technology organizations in the following areas:

Pilot Subsidy Models That Travel: Work-integrated learning (WIL), in which formal studies are combined with short on-the-job placements, are a proven model for helping students build in-demand skills and transition into the workforce. WIL has traditionally been reserved for post-secondary students, but providing channels for older workers to complete virtual training or placements that emphasize emerging skills will allow them to transition into new opportunities and guard against displacement. Programs will have to be regularly evaluated for outcomes (e.g. worker and employer satisfaction, success in filling vacancies) so that they can be constantly improved and scaled across the country.
Make Labour-Market Information Speak to Policymakers: Effective policies and programs need to be grounded in up to date, relevant data. A wide range of data is available around workforce participation, but this data needs to be translated into plain-language reports that highlight trends in skills demands, regional workforce makeup, income patterns among mature workers, and sectoral shortages. These regular reports would inform future training programs, CPP and GIS modifications, and rural retention grants.
Build Tools That Fight Age Bias: Mature workers will need access to digital tools and technology that allows them to navigate changes in the labour market. AI-powered career pathing apps and micro-credential tools developed to guard against age-based bias can be used to help older workers more quickly find learning and job opportunities that align with their transferable skills and experience.
Track, Share, Repeat: Measure mature-worker outcomes quarterly, share anonymized data with provinces, and co-host roundtables with ESDC, employers, and unions. This goes beyond internal reporting by building the evidence base for a truly age-inclusive labour market.

The data makes it clear that Canada’s older workers still have much to offer. With their current skill makeup and proven adaptability, mature workers will be crucial to Canada’s readiness to weather changes in our demographic makeup, the rise of new technology, and a shifting global economic landscape. If government, educators, sector councils, economic development organizations, and technology leaders come together now to acknowledge and invest in the potential of these workers, Canada can realize a future in which older workers continue to thrive in key sectors, potentially transition into second careers, and are ultimately better off financially and socially, all of which makes for a stronger Canada.

Sources

Statistics Canada Tables (Accessed November 2025)

Table 14-10-0287-03 — Labour force characteristics by province, territory, age group and sex, annual.
Table 14-10-0443-01 — Labour force characteristics by economic region and age group, annual.
Table 14-10-0291-01 — Labour force characteristics by province, territory and economic region, annual.
Table 14-10-0407-01 — Job vacancies by occupation and economic region.
Table 17-10-0142-01 — Estimates of the components of demographic growth, annual.
Table 14-10-0060-01 — Retirement age by class of worker and sex.
Table 14-10-0036-01 — Part-time employment by age group, sex and region.
Catalogue 75-006-X — Labour statistics and analytical reports.
2021 Census Profile (98-10-0403-01) — Rural and urban classification.
Small Area Estimates (Sept 2024) — Regional labour market estimates.

Reports, Articles, and Policy Sources

[1] [2] [5] [61] Labour Market Information Council (LMIC-CIMT) — Labour market resilience in the face of an aging population.
[3] [4] [42] Statistics Canada, The Daily — “In the midst of high job vacancies and historically low unemployment, Canada faces record retirements…”
[6] [7] [33] [34] [35] [36] [37] [38] [43] [44] [46] [47] [48] [49] [63] Employment and Social Development Canada — Promoting the labour force participation of older Canadians and related evaluation reports.
[8] Statistics Canada — The older people are all right.
[9] [10] [11] [12] [13] [29] [39] [40] [41] [45] [50] [51] [52] [53] [54] [55] [65] Policy Options (IRPP) — How to help older Canadians continue to work and related articles (July 2024).
[14] Journal of the Economics of Ageing — Older individuals’ labour force participation during COVID-19 (2024).
[15] [16] [17] [64] Cui, J. — Older Individuals’ Labour Force Participation during COVID-19 (SSRN).
[18] [19] [24] [28] ESDC 2025 Transition Binder — Canada’s Labour Market: Older workers by industry and region.
[20] [21] [27] RBC Economics — Canada faces peak aging as final boomers retire and population growth slows (2023).
[22] [23] [25] [26] [62] Statistics Canada, The Daily — Occupations with older workers (2019) and related analytical releases.
[30] [31] [32] UK Office for Budget Responsibility — How does economic inactivity compare across advanced economies?
[56] [57] [58] [59] [60] Statistics Canada — Canadian labour force: What will happen once baby boomers retire?