Mr. Speaker, I am pleased to rise, as Minister of State for Seniors, in support of Motion No. 515. This excellent motion has been introduced in the House by my hon. colleague from Edmonton East. His motion reads as follows:
That, in the opinion of the House, the government should continue to recognize the vital role of older workers in the Canadian economy and ensure its labour market programs and policies encourage older workers to contribute their skills and experience in the Canadian workforce.
Because Canadians are living longer, healthier lives, many are choosing to remain in the workplace longer. A recent article by Denise Deveau of Postmedia News quoted Tim McCarthy, who was a successful brokerage trader. Now at age 63, he is into his second career, at Home Depot as a flooring expert. McCarthy says:
When you have had a career that required a lot of energy and drive and you stop, you can go downhill. I’m not going to let that happen.... It’s important to do something that helps you keep your edge.
Susan Eng of the Canadian Association of Retired Persons finds that people like McCarthy “want to do it, they want to get out, and they want to stay involved”.
Deveau's article also quotes Taissa Klaus, who at the age of 60 decided to open a small store as a second career and believes that involvement is the key to staying young.
These older Canadians are an increasingly important segment of our labour force. They have already contributed so much to our economy and possess valuable skills, knowledge and experience. They are also a source of enormous potential and are invaluable mentors to younger generations. This government recognizes the importance of these older workers by ensuring that its labour market programs and policies do not penalize them for staying in the labour force if they choose to do so.
It is no secret that our population is aging. Currently one in seven Canadians is over the age of 65, but in just two short decades that ratio will jump to one in four. One result is that we are about to enter a period of severe shortages of skilled labour, which will be experienced from coast to coast to coast. A 2007 study on labour force projections indicates that during the last quarter century the Canadian labour force grew by about 226,000 per year, but in just six short years from now, that annual growth will be near zero. That is an enormous change. According to the report:
The labour market shortfall will be enormous.... The absolute size of the total labour force will peak in 8 of the 10 provinces during the period to 2016. The provinces will have difficulty getting the workers that they need.
I can assure the House that our government is aware of this demographic reality. That is why, in 2007, we appointed an expert panel on older workers. The panel produced a report examining both current and long-term issues facing older workers, including the barriers and disincentives to their continued labour market participation. We are pleased to note that the panel confirmed that our government is on the right track.
For example, one of the panel's recommendations was to “minimize work disincentive effects associated with the guaranteed income supplement clawback provisions”. So in budget 2008, we acted by increasing the GIS exemption from $500 to $3,500. This means more money in the pockets of 1.6 million Canadian seniors, more choice and more flexibility for older Canadians who would like to remain involved in the labour force.
It is more important than ever to encourage and support older workers who wish to remain as active participants in the Canadian labour force. As the expert panel on older workers indicated:
One of the major barriers to engaging them in the labour force was thought to be myths about the need to retire early in order to more fully enjoy life and to make room for the younger generation.
But our population is aging, and older workers are key to Canada's long-term prosperity. They represent a large pool of skilled labour, and many sectors realize that retaining them is essential. That is why we have taken action.
A key component of our government's economic action plan is to create better and increased opportunities for Canadian workers through improved support for skills development and training programs.
We are investing an unprecedented $8.3 billion in the Canada skills and transition strategy, which includes measures for income support and training.
Our economic action plan also provides about $500 million, or half a billion dollars, over two years for the career transition assistance program, which will benefit up to 20,000 people. It offers extended income benefits to long-tenured workers who are paying for their own long-term training.
These new initiatives are in addition to the increased support we are providing to the provinces and territories for skills training.
Through labour market development agreements, the Government of Canada provides nearly $2 billion in funding to provinces and territories. These agreements create employment and training programs for the unemployed who are eligible for EI.
In the economic action plan, we increased the funding for labour market development agreements by $1 billion over two years.
These agreements provide programming to assist unemployed workers, including older workers, who are not eligible for EI, to get back to work.
We have also increased funding for the targeted initiative for older workers, to assist unemployed older workers in vulnerable communities. This is a five-year, $220 million cost-shared initiative with the provinces and territories.
Also, as the House may know, the Minister of Finance recently announced changes to the Canada pension plan rules to remove penalties on older workers who wish to keep working. This is the kind of action Canadians have asked for, and the government is proud to say that it has delivered this action and will continue to do so.
A 2006 PricewaterhouseCoopers survey indicated that, in the year the first wave of baby boomers would hit 65, “62% of Canadian private companies say the shortage of skilled workers is already slowing the growth of their companies”.
Canada's prosperity now and in the future depends on a strong labour force. Our labour force is immeasurably strengthened by the contributions of older workers. Canada's older workers have accumulated the kind of wisdom and experience that we cannot afford to throw away.
Therefore, I urge all members of the House to join me in supporting Motion No. 515.