Happy New Year! As we start an exciting new year, it’s timely to discuss an issue many businesses are already facing and will continue to contend with in the coming years: an aging workforce and the retirement of the Baby Boomers.
Canada’s workforce is at a pivotal point, as the country approaches the peak phase of Baby Boomer retirements. In the next five years alone, 2.7 million Canadians, representing the last major wave of this generation, are expected to exit the labour force. This unprecedented shift is not just reshaping workplaces but accelerating demographic and economic changes that will resonate nationwide for years.
Businesses must prepare for this demographic shift by adopting strategies that safeguard productivity and enable effective knowledge transfer. The mass retirement of experienced Boomers risks losing vital institutional knowledge, making succession planning and mentorship programs essential for business continuity.
Why Adapting Matters
As millions of Boomers retire, Canadian businesses face a shrinking labour pool, with potential impacts on productivity, innovation, and service quality. Proactive approaches, such as phased retirement, flexible work arrangements, and upskilling, help retain older workers longer and ease generational transitions, maintaining operational stability.
Knowledge Transfer Solutions
Structured mentorships, shadowing, comprehensive documentation, and digital tools are critical to ensure essential skills and insights are passed down to new and mid-career employees. Intelligent automation, cross-training programs, dedicated learning sessions, and knowledge tracking tools minimize disruption and build organizational resilience during this generational shift.
Preparing now ensures businesses maintain their competitive edge as Canada’s workforce ages at a record pace. According to the Canadian Centre for Occupational Health and Safety (CCOHS), the proportion of workers aged 55 and older in Canada has increased from 10% to 21% of the workforce.
The Growing Numbers Behind the Trend
The Succession Readiness Report by MNP LLP shows Baby Boomers are currently the primary decision-makers for 62% of Canada’s small- and medium-sized businesses, collectively employing nearly 7.8 million Canadians in the private sector. Nearly two-thirds (about 64%) of these business owners are considering exit but have yet to formalize succession plans. This suggests many businesses, often Boomer-owned, are poised to be sold, closed, or transitioned upon retirement. The lack of clear succession plans poses risks to business continuity, employment, and local economies.
The economic impact of the Boomer succession wave is significant, including workforce shortages, productivity challenges, and rising recruitment costs. The Canadian Federation of Independent Business (CFIB) reports that 76% of small business owners plan to exit within the next decade, with retirement as the main factor. Mismanaged transitions risk business closures and job losses, affecting productivity and increasing hiring and training expenses. The CFIB stresses that successful succession is vital for economic stability and community livelihoods.
Approximately 5.2 million Baby Boomers have retired in the past decade, tightening Canada’s labour market, according to AI Financial News. Another 2.7 million Boomers aged 60–64 will retire in the next five years, reducing labour force participation by over 2 percentage points by 2030 despite steady immigration. This will increase recruitment and training costs, especially in sectors like real estate, agriculture, and resource industries with many older workers. The shrinking labour supply presents productivity challenges and added expenses as businesses adjust to demographic shifts.
Among those remaining, Canada’s median workforce age is rising from 40.3 to 40.6 years, with seniors (65 and older) now 19.5% of the population—more than 8 million people—as reported by Statistics Canada data analyzed in September 2025.
The Business Shake-Up on the Horizon
The surge in businesses coming up for sale due to retirements—the “silver tsunami”—creates a buyer’s market, opening opportunities for young entrepreneurs.
However, this also raises concerns about losing institutional knowledge and skills. When experienced employees leave, operations can be disrupted, productivity slowed, and training costs increased. Capturing and sharing expertise before departures is critical.
As Boomers retire, organizations are rethinking structure to fill talent gaps and maintain stability. Preserving knowledge, supporting transitions, and proactive planning ensure change strengthens rather than disrupts the workforce.
Smart Moves to Retain and Support Older Talent
Engaging experienced workers benefits business continuity and performance. Offering flexible hours, phased retirements, or part-time options helps older employees stay longer. Wellness programs and ergonomic workplaces enhance health and productivity for aging teams.
Customized training and mentoring roles enable experienced staff to share insights and stay updated. Succession planning ensures leadership knowledge transfers to younger employees.
Bridging the Digital Divide
As technology reshapes workplaces, older workers need tools and training to keep pace. Digital adoption and AI can enhance the skills of aging employees, making work more efficient and relevant. Tailored training programs boost older workers’ confidence and employability in today’s digital economy, benefiting individuals and strengthening Canada’s workforce overall.
Turning Challenges into Opportunities
Nearly 1,000 Canadians retire daily, with 5.2 million Boomers retired since 2010. This demographic shift offers younger generations a unique chance to acquire businesses and introduce modern technologies and sustainable practices.
With proactive succession planning, Canada can transform aging population challenges into strategic advantages for innovation and growth in the job market.
Future-Proof Your Workforce: Plan Today for Tomorrow’s Success
As Canada’s workforce undergoes this generational change, now is the time to address talent gaps and build resilience. Partner with us for expert recruitment solutions tailored to your industry’s evolving needs. Together, we can identify critical skill shortages, source qualified candidates, and implement workforce strategies to support your business through this transition.
Let’s work together to future-proof your organization with flexible and knowledge-sharing practices that retain vital talent and drive long-term success in today’s competitive labour market. Contact us to discuss how we can support your team’s growth and transformation.
Staff Shop Inc. is a privately held Canadian-Indigenous-Women owned staffing, search and consulting firm servicing North America and the Caribbean as an award-winning diverse supplier, certified with CCIB, CAMSC, WBE & WEConnect International.
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“The only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their competence with those who can use it.” — Andrew Carnegie
