Aging demographic set to transform Canada’s economy, report says

A new report released today by RBC titled “Navigating the 2020s” calls attention to substantial challenges Canada’s rapidly aging demographic will present to its economy over the next decade.

With more people over the age of 65 than under 15, the demographic shift is altering the country’s economic, social and political landscape.

The report forecasts that 650,000 people will be living in seniors’ residences or care homes in Canada in 2030—a jump from the current 450,000. It is estimated that the cost to build the additional capacity will be at least $140 billion.

In November 2019, EngAge BC CEO Daniel Fontaine gave a speech to business leaders at the Greater Vancouver Board of Trade on the economic impacts of our aging society, and how the business community can better prepare for these profound societal changes. Fontaine is past-chair of the Canadian Association for Long-Term Care, an organization advocating for a stronger national response to Canada’s aging demographic.

“As we begin a new decade, responding to the demands our economy and our society faces from the aging demographic can no longer be put off,” Fontaine says.

“The signs of an emerging crisis are already there, from staff shortages and long waiting lists for healthcare services. It is time for our elected officials across the country to stop ignoring the issue of our aging demographic and take action,” he adds.

Bedlam in BC's Continuing Care Sector
Click to download Bedlam in BC.

At his keynote to the Board of Trade, Fontaine presented several statistics that speak to how unprepared our society is to face the rising tide of an aging population.

  • B.C. requires an additional 31,000 new long-term care beds by 2035 to meet future demand. B.C. is current short by 3,000 beds.
  • Over the last three years, the Province of B.C. has only announced 187 net new long-term care beds.
  • Over 8 million Canadians provide informal care to a family member or friend per year.
  • 6 million caregivers take time off work to provide care.
  • 44% of caregivers between the ages of 45-64 care for both a parent and children.
  • Caregivers who look after seniors save Canada’s health care system between $24 to $31 billion annually.

Last May, BC Care Providers Association issued a major report titled Bedlam in BC’s Continuing Care Sector: Projecting Future Long Term Care Bed Needs, which outlined Canada and B.C.’s massive demand for long-term care home capacity over the coming two decades.

Read the full report by RBC here.