Canada's workforce ages as older workers stay on the job longer

Canada's workforce is growing older, with new data from Statistics Canada revealing a significant demographic shift. The proportion of firms with an average worker age over 40 increased from 26.2% in 2001 to 42.3% in 2022. More strikingly, the share of workers aged 55 and older within firms more than doubled, rising from 9.3% to 18.8% over the same period.

The manufacturing sector shows the most dramatic increase, with the share of workers aged 55 and older jumping from 9.8% in 2001 to 24.2% in 2022. This suggests that nearly a quarter of manufacturing employees are now over 55.

Experts like Nita Chhinzer, an associate professor at the University of Guelph, suggest that technological advancements are making jobs less physically demanding. "It’s more symbiotic relationship with technology where technology is easing some of the manual and physical demands of labour and manufacturing, meaning that it is pushing less on older bodies," she explained. This shift may allow older workers to remain in physically demanding roles longer.

This trend aligns with broader demographic changes in Canada. Statistics Canada data indicates the country's overall population is aging, with the average age increasing from 37.5 in 2001 to 41.7 in 2021. In 2023, for the first time, the population of individuals aged 65 and older surpassed that of those younger than 18.

Several factors contribute to the aging workforce. Beyond technological adaptation, declining fertility rates, which hit a record low of 1.25 children per woman in 2024, play a role. Additionally, Canada has reduced immigration levels in recent years. A 2026 Wealthsimple survey also highlighted that high child-rearing costs force many parents to reduce retirement savings contributions, potentially keeping older individuals in the workforce longer.

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It’s more symbiotic relationship with technology where technology is easing some of the manual and physical demands of labour and manufacturing, meaning that it is pushing less on older bodies.