Archive for August, 2009

Not All Doom and Gloom for Canada On World Stage

Lina Ko August 31st, 2009

According to the Globe and Mail, the demographic challenge facing developed nations is expected to dwarf the cost of recent financial stimulus.
 
Demographics have become one of the most worrisome challenges on the global stage. The dismal demographic scenario is that the number of older people will grow faster than younger ones everywhere in the world. This, in turn, is putting enormous pressure on governments, already stretching their fiscal capacity to the limit to cope with  the fallout from the global financial crisis and ensuing economic sluimp. United Nations estimates show that birth rates have fallen below replacement levels in more than 70 countries, including most of the developed world, at a time when larger numbers of people are living well into old age.
 
The International Monetary Fund warned in a recent report that governments must contrive clear exit strategies from their massive stimulus packages because the exorbitant costs of supporting ageing societies are breathing down their necks.
 
In Canada, Finance Department officials are already crunching numbers to figure out how soon the big bills associated with ageing will hit, and how much time Ottawa has to spend to get spending and revenues back in balance.
 
Canada’s ratio of ageing costs compared to crisis spending is probably considered one of the highest in the world by the IMF partly because the crisis costs have not been huge, compared with those of other countries. But it’s also because the cost of ageing is expected to rise rapidly.
 
The added costs to health care, Old Age Security, government pensions and other age-sensitive spending will amount to about $1.5 trillion in today’s dollars – a burden that will mostly be borne by the provinces, particularly in Eastern Canada.
 
But compared with the likes of rapidly ageing Japan, Russia and a handful of Western European countries such as Italy, Canada is in relatively good shape.
 
Canada has the lowest net government debt-to-GDP ratio among the leading industrial countries and more favourable demographics than most, thanks partly to a large immigrant population. Another plus for Canada is that since the mid-1990s, a growing number of people past the age of 55 have been staying in the work force,  The participation rate for this age group has risen 12 percentage points to a record 35 per cent, a trend that may help the Canada Pension Plan stay above water.
 
It’s not all doom and gloom for Canada on the world stage!

Mad About Mad Men

Lina Ko August 24th, 2009

There were so many blogs already on Mad Men’s debut episode that what I’m writing here is probably no surprise to anyone! But from a boomer’s perspective, I can hardly find any boomer who doesn’t like the show. A lot of us were born or grew up in that era, so it’s natural that we love the series. But the reason why I really like it from the beginning is that it’s not until you watched the show did you realize that we women have come a long way! The evolution of women over the years is astounding, but even the evolution of the women characters within the show as the seasons progress is amazing. Peggy, Joan and Betty have all evolved to become stronger women in their own ways.

Shakespeare’s ‘seeming’ theme woven through all seasons is another reason why there is poetry beneath the chaos. The Drapers look perfect on the outside – a golden couple living in suburbia with a pair of lovely kids. Yet, inside, they are both in trouble and terribly insecure in their own ways.

It is not just a boomer show. The popularity of Mad Men transcends generations – the Millennials, Gen-Xers, boomers and seniors all follow the show. The September issue of Vanity Fair said Mad Men is the best TV drama ever produced. It certainly is the best written, when compared to Seinfeld, The Sopranos and other great shows. How can it not be when the majority of writers for the show are women? The silence in this show can sometimes be mistaken as snail-pace production and the subtlety of the witticisms can be missed if you’re not paying attention. In addition, it’s always a challenge for viewers not to be distracted by the disturbingly good looks of Jon Hamm and Jennifer Jones to appreciate their fine acting.

I’m now rewatching Season 2 while Season 3 is gradually being unveiled – you discover something new every time you watch the old episodes!

Boomers Take Risks

Lina Ko August 13th, 2009

According to the Calgary Herald, the 20-something upstart has been held up as a model of entrepreneurial spirit. But contrary to popular belief, it is the baby boomer generation  – 55- to 64-year-olds – that has the highest rate of entrepreneurial activity, according to a recent study by the Ewing Marion Kauffman Foundation, a Kansas City, non-profit group that encourages entrepreneurship.  The study predicts the U.S. might be on the verge of an entrepreneurial boom because of a growing ageing population.

With baby boomers living healthier and longer lives, they are no longer following traditional retirement paths and instead seeking second and third careers. Part of the wave reflects a shift from lifetime jobs with long-term employment falling for people aged 35- to 64-year-old during the past 50 years, according to the study. Boomers also have the experience, skills, contacts and other resources to pursue entrepreneurial opportunities.

Experts are not surprised by the risk-taking nature of baby boomers, whose childhoods in the 1960s and 1970s have helped form their attitude toward growing old.

There is a sense of ‘I will not age according to stereotypes,’ and part of that is ‘I’m not going to retire.’ They’re approaching ageing as the next step of development as opposed to the next period of decline.

Boomers, as always, are full of pleasant surprises!

Worker Deficit in Industry Sectors

Lina Ko August 6th, 2009

According to the National Post, sectors such as construction and mining are on the cusp of huge worker deficits and with the greying of Canada’s population, it’s just a matter of time before the problem spreads. Roughly 30 percent of the recent job losses have been in the construction sector during the global recession. Yet, this country’s Construction Sector Council said it will need 317,000 skilled workers between now and 2017. Of that number, 168,000 workers would be needed to replace retiring baby boomers.

The mining sector has said it will need 70,000 new workers over the next decade to meet projected growth needs. It is expected that 40 percent of the industry’s workforce will retire by 2014.

Studies abound about the impact of Canada’s ageing population. Yet, despite all the warnings, it appears Canadian employers haven’t done much to prepare. In a survey conducted by the Conference Board of Canada, more than three-quarters of organizations, or 77 percent, said the greying of the Canadian labour pool will be an issue for them. But the survey also indicated that just six percent are making efforts to hold on to mature workers.

The C.D. Howe Institute said higher compensation is likely to emerge once the economy recovers and more boomers start retiring. Policymakers are also aware of the coming population crunch. In May, the federal government announced changes to the Canadian Pension Plan that would encourage older workers to keep working until age 70 by paying out richer benefits.

According to a leading employment placement firm,  companies in the future are likely to focus much of their time on developing strategies that keep existing workers with the organization for longer periods. That likely requires tailoring work packages that allow more flexible work schedules and enhanced benefits that appeal to older workers. Some companies are trying not to cut jobs too much in this downturn because if the economy picks up again, they won’t have the workers and won’t be able to get them back.

As the population ages, the positions to remain hard to fill as the population ages are skilled trades, sales representatives, engineers, technicians, secretaries and administrative assistants, teachers, drivers, accounting and finance staff, labourers and nurses. Now is the time for employers to make long-term plans to keep their boomer employees.