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Creating job opportunities during the 'silver tsunami'
Editorial by Christian Saint Cyr
National Director / Canadian Job Development Network
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Have you ever wondered why it is so hard for people to get a job these days? Angus Reid just released a survey which revealed four-in-five Canadians who are either looking for a job, or have someone close to them who is, describe the current job market as “bad” or “terrible,” with just 13 per cent offering a positive assessment.
Among job seekers, the most common frustrations reflect a lack of response from employers and a perceived shortage of available jobs in their area.
It's possibly because employers have been busy? Sure, employers are busy but they've always been busy.
There's uncertainty in the economy. And while things don't look great, aside from inflation the economy has been pretty good.
Canada hasn't experienced a recession, aside from the pandemic, since 2009. That's seventeen years.
AI is just another form of automation which has been transforming workplaces for more than a hundred years. We've seen apps, the Internet, Microsoft Office, computers and robots regularly transforming the labour market for more than fifty years now.
And while cuts to immigration, temporary foreign workers and international students have added increased levels of stress to employers, this should make them more eager to hire, not less.
I would suggest, just as with some of us, not all of us, employers are getting older and more inflexible. They've got their eye on the door and it's affecting their decisions.
The average age of Canadian small business owners is approximately 53 to 54 years old, with a significant portion of entrepreneurs approaching retirement age. Data indicates that around 60 per cent of small and medium-sized enterprise (SME) owners in Canada are aged 50 or older.
We've spent so many years talking about 'Baby Boomers' retiring that we forget the small business owners are looking to exit the workforce as well.
According an Environics poll, 42 per cent of Canadian small business owners are unsure about their future and their plans for retirement while more than a third (36%) don’t plan to give up ownership until they are not well enough to manage their business.
New data suggests many employers have chosen now to exit the business world.
The Canadian Federation of Independent Business (CFIB) recently released a report titled “Canada’s Entrepreneurial Drought, Part 2: Fixing Canada’s Shrinking Business Landscape” the second in a two-part series tackling the increasing imbalance between Canadian business openings and closures.
The first report in the series called attention to the country’s “entrepreneurial drought” – defined as at least four consecutive quarters in which business exits exceeded entries – since early 2024, as revealed in CFIB’s research.
The CFIB found that Canada’s small business owners have shuttered more businesses than started them for six consecutive quarters, with 55 percent of owners declining to recommend beginning a business at this time.
Michelle Auger, CFIB Director of Trade and Marketplace Competitiveness, described the federal spring economic statement (released last week) as an opportunity for the Canadian government to combat this trend and boost confidence among businesses.
The CFIB is calling on all levels of government to make it more attractive for business owners to continue in their enterprises. Their suggestions include reduced regulations; create training incentives; tax cuts and modifications; and a renewed focus on small business over big business.
They are also encouraging businesses to raise awareness, especially among young entrepreneurs, regarding the opportunities and advantages of buying existing businesses.
“Canada cannot afford to keep losing more businesses than it gains, it’s time for all governments to put small businesses first and reverse the entrepreneurial drought,” noted Auger.
“Canada needs to give businesses clear reasons to start, stay and invest, yet current government policies are failing to inspire confidence among entrepreneurs. If governments are serious about Canada’s economic strength, competitiveness, and productivity growth, they need to start reflecting this in their policies,” the CFIB stated.
According to Social Capital Partners, Canada's "silver tsunami" will be this massive wave of aging baby boomer business owners—over 75% of Canadian small business owners—expected to retire and exit their companies within the next decade. This unprecedented transition involves over $2 trillion in assets, creating risks of business closures or foreign takeovers if proper succession plans are not made.
It would seem, in job development, we have a front-row seat for a massive transition of old business to new. In the end, there may be far fewer businesses but the transition will also include new benefits for future workers.
Like a fire that burns through an old growth forest, the ashes that remain, are fuel for future growth.
AI and automation will continue to transform workplaces. Workers who specialize in data, process and systems will be at the mercy of artificial intelligence. This said, I believe this will be in more entry-level employment and not in more professional roles.
AI isn't just affecting keyboard jobs. I just read about a restaurant that has acquired two $50,000 machines that will prepare fried rice and chop suey. The restaurant claims this will replace two roles for prep cooks. And while I struggle to understand how, apparently both of these machines use AI to do their work.
So, what is the take-away here?
There is definitely an education piece. We need to help our clients understand that if they are actively applying for these jobs, they will spend their entire career competing for a continually eroding group of jobs with increasing competition.
Technology replaced workers at Blockbuster and as projectionists in the movie theatres, and yet those workers could have seen these trends building years in advance.
As to employers, I believe our mantra must be 'no hassle'.
According to Merriam Webster, "a hassle is an annoying, inconvenient situation, or a time-consuming, difficult task."
Clients and students marketed by job developers are consciously or unconsciously perceived by employers as a hassle. We need our messaging to be about the idea that they are ready to go; able to apply their knowledge; that they will take initiative.
By the way, you may be doubting that your clients are capable any of those things. For this reason, we need our coaching and support of clients to be built around this sort of skill enhancement.
We can be providing training which addresses questions such as:
- What does a successful first day look like?
- How can I take initiative without overstepping?
- What are the skills I'm being hired for?
Marketing a client to a 35 year-old business owner and a 60 year-old business owner is a different arrangement and we should be tailoring our approach as such.
It's likely a 35 year-old manager or business owner is going to be more likely to take risks; try something that is unproven; or go in a new direction.
It's just as likely that a 60 year-old manager or business owner is going to avoid rocking the boat; look at enhancing the team (not disrupt it); and hire the safe candidate.
Our communication, the clients we suggest and the arguments we make should be tailored to the person sitting across the desk or counter from us.
And while it's risky to make assumptions about any employer, this is why we do discovery and try to better understand what the employer is thinking.
Disruption is a scary thing, but at the end of the day, employers will still need people; job seekers will still need career professionals; and employers will always be interested in finding candidates who can make a great contribution. No matter what happens in the next decade, don't hide from or complain about change. Just try to learn from it.
We’ll be discussing the value of discovery in job development at our #MotivatingMondays meeting of the Canadian Job Development Network, Monday May 4th at 8:30am Pacific; 9:30am Mountain; 10:30am Central; 11:30am Eastern; 12:30pm Atlantic and at 1pm in Newfoundland.
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On the morning of Monday May 4th 'Click this Link' to join the session.
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THIS IS THE LAST WEEK
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Canadian Labour Market Reports
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To learn more, email Christian Saint Cyr, at: csaintcyr@labourmarketonline.com
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