The Future of Atlantic Canada: Dealing with the Demographic Drought
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The Future of Atlantic Canada
Dealing with the Demographic Drought
October 2009
Amelia DeMarco, Atlantic Research Analyst
Bradley George, Director of Provincial Affairs
Executive Summary
Atlantic Canada is facing a looming labour shortage. While the problem is not unique to the region, the demographic changes behind this shortfall of workers are taking place more rapidly in Atlantic Canada. At present, the economic downturn has shifted focus away from these long-term challenges onto the immediate economic challenges facing Atlantic Canada’s families and businesses. However, demographic challenges will continue to impact the region long after its economy has recovered.
Building on research by the Canadian Federation of Independent Business (CFIB) and others, this report examines the demographic changes taking place in Atlantic Canada, and the resulting labour shortage. Given the region’s high rates of youth out-migration, this report also considers small business owners’ views on the future of young Atlantic Canadians and what employers are doing to attract and retain this important group.
As the findings demonstrate, small business owners identify an aging population, the out-migration of youth and the shortage of qualified labour as the greatest challenges facing Atlantic Canada. Further, business owners believe training and skills development are essential to improve the outlook for young people in the region. In addition to increasing salaries and wages, employers rely on training and advancement opportunities, greater employment flexibility, and apprenticeship programs to attract younger workers. In order to do more, employers want governments to promote trades and apprenticeships, and provide businesses with training tax credits. They also believe high schools should teach skills that are in demand by employers.
Unfortunately, there is no single solution to Atlantic Canada’s population issues. While governments, businesses, and communities must all find ways to retain the current workforce and attract new people to the region, sustainable economic growth will largely depend on the region’s ability to do more with less. This report outlines some potential ways for governments to accomplish that goal. Atlantic governments should set ambitious targets to help the private sector achieve productivity growth and adopt a cooperative approach to regional demographic challenges. CFIB also recommends that governments take steps to incent and reward workplace training, better match the immigration system to the needs of small business and reduce the tax burden on Atlantic Canadians. These approaches to tackling Atlantic Canada’s demographic challenges will benefit not only small employers, but also employees, larger businesses, governments and the region in general.
