After completing a thorough statistical research, we are pleased to share with you, in this report, three major trends that will affect the workforce in Canada for the next 20 years including factors that may have an impact on your business.
Analyzing changes in human capital will help grow any successful business for years to come. An effectively developed workforce is important for supporting business needs and achieving future business goals. In the following sections, we will present the most important probable trends that will shape the future of Canadian businesses as well as their implications on the future workforce.
Aging and Population Growth. This kind of trend differs from one region to another. However, according to Statistics Canada, only the Atlantic provinces are greatly affected by aging, knowing that retired population could reach 31% in that part of country in near future. While for the rest of Canada, it will extend to about 24% by 2031. As for the growth of population, once again, the Atlantic provinces are the most impacted. In fact, their population growth tends to zero. Nevertheless, the Prairies are recording the biggest population growth in history for now, surpassing Ontario, Quebec and British Columbia. Therefore, if you plan to do business in Atlantic provinces, consider attracting young specialists to that area.
Immigration. Always according to Statistics Canada, the province of Ontario will tend to more than 40% of visible minority population for the next 20 years. Even now, 40% of its residents were born outside Canada. Alberta, Saskatchewan and Manitoba, for the first time in history, will receive the most immigrants. This international migration influx will explain their major population growth, as shown in the previous section. It may be beneficial to think of intercultural activities and integration programs for the newcomers.
Information Technology and Artificial Intelligence. With the invention of computers in the middle of 20th century, we observe a continuous growth of technologies in many fields, affecting our productivity. Computers are becoming faster, machines are becoming smarter. Human workers are more and more replaced by robots at manufactories. Japanese inventors are working seriously today on android clones and social robots. These machines with human faces, according to The Guardian, will replace 40% of the Australian workforce within the next 10 to 20 years. That same trend might be expected for Canadian market. Further technological advances will increase demand for a highly skilled workforce, and will certainly change the business process as well as the nature of employment relationships.
Internet. Recent statistics shows that 51% of the world’s population uses the Internet. This technology allows people to work remotely. It also allows service oriented businesses to function 24/7. Recently, Elon Musk, the CEO of SpaceX, announced a project to cover world with internet service from space. As a result, employees will certainly ask for more flexible hours and remote work, and the demand for online services will grow.
Outsourcing. Most of today’s telecom and banking businesses are employing call centers in foreign countries to save on labor costs. The same applies to the manufacturing. For example, an American branded iPhone is made of mostly Korean and Taiwanese parts, while assembled in China. Another benefit is that international organizations have subsidiaries across the world. Local employees of a business will have better chances to deal with local customers, as they share the same language and culture.
Brain drain. According to Globe And Mail survey, Canada ranks 3rd as one of the best countries to live and work in, after New Zealand and Singapore. The loss of Canadian specialists is not a factor to be worried about for the next years to come.
Three major trends that will transform the Canadian labor force in the near future are demography, technology, and globalization.