Insights

March 7, 2022

Weekly EconMinute—Labour force participation by age

In this week’s EconMinute, we’re talking about labour force participation by age.

Have an indicator you want us to look into? Email us at media@businesscouncilab.com.

It has long been said that Albertans are very active in the labour market. At its 2008 peak, labour force participation was 75%, around 7% points higher than Canada’s average. Since then, it has slowly declined to around 69% as of 2021 compared with 65% nationally. Even after this decline, Alberta continues to have the highest participation rate and employment rate in Canada.

This difference is often attributed to Alberta having a relatively young population, as well as a greater eagerness to work. While there is some truth in the first claim, there is little evidence of the latter.

Interestingly, there is also another factor at play: Albertans are slower to retire.  While Albertans are somewhat slower to join the labour market­­—perhaps solely focusing on post-secondary education during this time—they also tend to retire later in their careers.

Here is how labour force participation breaks down by age:

  • Young Albertans (age 15-24) are somewhat less likely to be working, or looking for work, than their counterparts in other provinces: 62% compared to 64%.
  • Primary working-age Albertans (those likely to have completed education and training but be pre-retirement) are about as likely to be active in the labour market as peers in other provinces. In other words, they do not show a greater eagerness to work.
  • However, those who are 50 and over are more likely to continue working in Alberta than they are in other provinces. The gap becomes especially pronounced for individuals over 60.
    • For instance, though just 58% of those age 60 – 64 are still working nationally, 62% of Albertans remain in the labour force.
    • In other words—whether due to better health, greater fulfillment from their career, or for financial reasons—Albertans are slower to retire.

Explore Insights:

Share This