Labor shortage: More retirees are needed in the workplace

While employment for people aged 55 and over fell by 51,000 (-1.2%) last June for the first time since April 2021, voices are growing that governments should work harder to keep them in the labor market.

• Also read – Quebec labor shortage: many more seniors at work

“The decline in employment was almost entirely due to the decline in the number of workers aged 55 and over,” summarized Statistics Canada in its June 2022 Labor Force Survey released yesterday.

However, in the midst of the labor shortage, the President of the Réseau FADOQ is categorical: even if there are already ways to encourage experienced workers to work, we must redouble our efforts in order not to lose them.

“Governments must continue to think about incentives to retain or bring experienced workers back into the labor market as one of the solutions,” argues Gisèle Tassé-Goodman.

broken promises

“In the last election campaign, the Liberal Party of Canada promised to create a career extension tax credit like in Quebec. Since then, however, there has been radio silence,” she complains.

In an interview with The Canadian Press yesterday, the CEO of the Conseil du patronat, Karl Blackburn, expressed his desire to persuade more experienced workers with his project “Seduction of the 60-69 year olds”.

Refundable Credit

More needs to be done, according to Luc Godbout, Research Chair in Taxation and Public Finance at the University of Sherbrooke.

“We need to make the career extension loan reimbursable and also make contributions to the Quebec Pension Plan optional for taxpayers age 65 and older,” he believes.

He adds that most of the 1.2 million people aged between 55 and 65 actively contribute to the economy.

“The challenge is to maximize the chances that they will continue to do so over the next decade as they age 65 and older,” he concludes.

▶In Quebec, employment fell by 27,000 (-0.6%) in June, the second drop in three months, according to Statistics Canada, which finds the largest falls in natural resources, information, culture and leisure.

He wants to work without being “massacred” by taxes

Daniel Matthys shows his notices that surprised him.

Photo Francis Halin

Daniel Matthys shows his notices that surprised him.

A federal government retiree who works a few hours a week as a teller and clerk doesn’t understand why governments aren’t more generous to retirees whose salaries are being cheated.

“Pensioners around me say to me, ‘Well no, if I go back there, they’re going to massacre me at the end of the year,'” says pensioner Daniel Matthys, 61, when asked if his friends like it when he’s here and there there works .

“I can’t wait for people to say to retirees, ‘You can go to work. We’re not going to stun you on taxes,” he adds.

Last week, The newspaper told the story of seniors returning to the labor market, 12% more numerous than three years ago.

Reading the report, Daniel Matthys felt challenged. He wanted to tell his story protocol To share the shock he had when his $25 an hour merged into the after-tax minimum wage for the first time.

“I want to pay my taxes, but I don’t want to overpay them at the end of the year because my income will change my tax bracket at a stratospheric level,” stresses the man from Lanaudière.

According to him, “governments want the butter and the money for the butter” by urging seniors to work but waiting for them to pay taxes.

solution mode

While the unemployment rate was 4.3% (+0.1 percentage point) over the past month, Daniel Matthys believes there is an urgent need to switch to solve mode to help workers, not the companies that serve them .

According to Mr. Matthys, we need to be more creative to keep seniors in the workplace.

“Why wouldn’t retirees have a tax exemption on the first $10,000 they earn?” It would take a burden off,” he suggests.

“The other solution would be to have a tax report for my pension and another independent separate one for the job I do,” he says.

At Réseau FADOQ, we believe the current maximum provincial career extension tax credit of $1,650 is positive but insufficient.

“The next Québec election campaign will be a good time for political parties to present their ideas to the Québec people to encourage these workers to remain or return,” concludes Québec President Gisèle Tassé-Goodman.

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