Over 350,000 Canadian seniors are working because they have to, according to a recent Statistics Canada report.
Statistics show that immigrant seniors were more likely to work because of need, with 15 percent of immigrant men saying they work out of necessity, compared to 9 percent of Canadian-born men. When it came to senior women, 9 percent of immigrant women said they worked out of need, compared to 6 percent of women born in Canada.
Another factor for seniors who work is whether or not they rent a home or own it, the report found, saying that “housing wealth is a significant wealth component for most Canadians” and those who rent generally have “fewer financial resources” and more need to work.
Some of the variables involved in determining whether a senior needs or chooses to work include age, marital status, immigrant status, and homeownership. However, when it came to education level, the numbers were similar, wrote the authors René Morissette and Feng Hou.
“For example, 8 percent of Canadian-born men with a bachelor’s degree reported working by necessity in 2022, a proportion similar to that reported by their counterparts with no high school diploma (9 percent),” the report said.
Seniors who reported to be working out of necessity rather than choice were more likely to work full-time, the study shows. They were also more likely to work in “blue-collar” positions with senior men employed largely in manufacturing, transportation, or warehouse jobs. Senior women who are working because they need to often hold retail positions, administrative jobs, or waste management and remediation services, according to the report.
“Regardless of immigrant status, male and female employees who worked by necessity earned lower wages than those who worked by choice,” the authors wrote.
The report concludes that as Canada continues to deal with a labour shortage, seniors could fill the gap in some areas.
Encouraging More Seniors to Work Longer
The study comes after a similar report by the Canadian Federation of Independent Business (CFIB), which said keeping seniors on the job longer can help reduce the impact of an aging workforce.“Encouraging older adults, who are willing and able to work, to continue working longer is critical,” the report said. “Governments should review and reform certain income-tested elements of Canada’s pension and tax credit system that can create disincentives to work for seniors and near seniors.”
Specifically, CFIB said changes should be made to allow those over 65 to delay Old Age Security payments. It also calls for changes to the tax credit those 65 and older can claim on tax returns.
“Rather than basing eligibility for this credit on age and income, the government could base it solely on age so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income,” the report said.
CFIB also recommends adjusting the CPP deductions from workers’ pay, and adding a tax credit for seniors who want to stay in the workforce.
“Government should advance and support a wide array of programs and policies to help address persisting labour shortage pressures by maximizing the potential participation in the labour market of those already in Canada,” the report said.
