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Canadian Mining Industry Employment and Hiring Forecasts - MiHR

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Figure 10<br />

Age Group Distribution in <strong>Canadian</strong> <strong>Mining</strong> <strong>Industry</strong> in 2006<br />

35%<br />

30%<br />

<strong>Mining</strong> <strong>Industry</strong><br />

<strong>Canadian</strong> Labour Force<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

15 to 24 years<br />

25 to 34 years<br />

35 to 44 years<br />

45 to 54 years<br />

55 to 64 years<br />

Source: <strong>Mining</strong> <strong>Industry</strong> Human Resources Council; Statistics Canada, 2006 Census.<br />

Retirement<br />

A number of factors are taken into account when a person decides to retire. Many workers consider such issues as<br />

savings; debt <strong>and</strong> other financial circumstances; health status; sense of attachment to work; family responsibilities;<br />

labour-market pressures; <strong>and</strong> retirement policies (government, labour, <strong>and</strong> organizational). Consequently, it is difficult<br />

to predict an individual’s expected retirement date.<br />

A reasonably conservative approach when estimating retirement rates is to consider historical retirement ages <strong>and</strong><br />

to create a profile of expected retirement based on age. The average retirement age in the mining industry over the<br />

past 20 years has been 59.5 years. This is lower than the current national average of 62 years. Depending on the age<br />

of entry into the mining workforce <strong>and</strong> career paths taken, some industry workers can be eligible to retire as young<br />

as 45 to 50 years old.<br />

Pending retirements <strong>and</strong> succession planning are priorities for industry employers. Respondents to <strong>MiHR</strong>’s<br />

2010 National Employer Survey indicated that, on average, over a third of their workforce will be eligible to retire<br />

in the next five years, with the largest proportion eligible in three to five years (12.5 per cent, as shown in Figure 11).<br />

Retirement rates will therefore have a major impact on hiring requirements in the near future.<br />

Burgeoning retirement rates <strong>and</strong> the aging workforce suggest that mining employers need to find ways of encouraging<br />

retirement-age workers to continue to support skills development in the future. Because depth of experience <strong>and</strong> skills<br />

are critical for the future performance of the mining industry, training <strong>and</strong> mentoring younger or newer employees is of<br />

critical importance. As noted above, most respondents to <strong>MiHR</strong>’s survey indicated that training <strong>and</strong> development activities<br />

are commonly outsourced. Encouraging retired workers to take on this role could be an excellent way for employers to<br />

ensure extended knowledge transfer <strong>and</strong> mentoring of younger workers after the mature workers retire. It also creates<br />

a niche of employment opportunities for retired or semi-retired workers.<br />

2010 <strong>Employment</strong> <strong>and</strong> <strong>Hiring</strong> <strong>Forecasts</strong><br />

21

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