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Exploring Approaches to Address Labour Shortages

Numerous countries are grappling with labour shortages due to retirements outpacing new entrants into the workforce. In Canada, the federal government has been gradually increasing immigration levels to tackle this issue, yet this approach has led to challenges in housing, healthcare, social services, and infrastructure. Are there alternative solutions that governments, organizations, and society should consider?

Evi Mustel, President of Mustel Group and Honorary Vice-Consul of Estonia in Vancouver. (www.mustelgroup.com )
Evi Mustel, President of Mustel Group and Honorary Vice-Consul of Estonia in Vancouver. (www.mustelgroup.com )

One potential but often overlooked solution involves encouraging individuals approaching retirement age to extend their working lives. Estonia anticipated this impending labour shortage and has already taken steps to promote longer careers. The Estonian Active Ageing Development Plan 2013–2020 was the first step which prioritizes the extension of working lives, aiming to reduce unemployment and inactivity among older age groups. Consequently, Estonia boasts one of the EU's highest employment rates, reaching 68% among 15–74-year-olds in 2018. This success is attributed partly to a favourable tax system for working pensioners but also to a culture that is more accommodating to older individuals than in other Central and Eastern European countries (European Commission 2018).

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