Despite having second-highest labour force participation rate and lowest unemployment rate in Canada, Yukon grappling with shrinking labour pool: report
Yukon is facing mounting pressure in its labour market, according to a recent report.
“The demand for employment in Yukon is projected to continue to grow. However, Yukon is already dealing with a shortage of labour, and several challenges will need to be addressed to keep employment opportunities in the territory,” notes the Conference Board of Canada.
Despite holding the second-highest labour force participation rate and the lowest unemployment rate in Canada in 2023, Yukon is grappling with a shrinking labour pool, it says.
Participation in the territory has dropped from 76.3 per cent in 2019 to 73.2 per cent in 2023—the steepest decline among all provinces and territories.
The report attributes this trend to an ageing population and underutilization of working-age adults.
In 2016, adults aged 65 and older made up 40% of the population not in the labour force in the territory. By 2021, this figure had increased to 45%.
At the same time, there is a higher proportion of working-age adults among those not participating in the labour market in Yukon compared with the national average. In 2021, 55% of Yukon’s non-participating population were aged 15 to 64, compared with 50 per cent in Canada.
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The supply of labour remains a major challenge for Yukon’s labour market.
“Every year over the past five years, Yukon has had the highest vacancy rates in the country, indicating that the current workforce in the territory cannot meet the existing demand for labour,” says The Conference Board of Canada.
Despite the high number of job vacancies, the report notes that the number of working-age adults in Yukon not currently engaged in the labour force is actually greater than the number of vacant positions.
One of the primary barriers to attracting skilled labour is Yukon’s worsening housing crisis.
The cost of housing in Whitehorse has increased by 75 per cent over the last decade. In 2023, rental prices reached an all-time high, with a vacancy rate of just 1.3 per cent for buildings with three or more rental units, according to a previous report from ManpowerGroup.
Solving the labour shortage in Yukon will require “reducing disparities in labour market outcomes for Indigenous people, immigrants, women, youth, and people with disabilities,” says The Conference Board of Canada.
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“The territory will need to continue to attract skilled labour in the short term while the post-secondary education system improves access to training for in-demand skills within the territory,” says The Conference Board of Canada.
“At the same time, improvements will need to be made to foreign credential recognition to ensure that foreign workers with skills are able to use their skills in the labour market. Moving forward, communities, governments, and industry will have to work together to develop innovative strategies that attract and retain skilled labour for the territory.”
Ottawa has previously made major changes to its immigration rules.
