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Employment and Social Development Canada (ESDC) has identified over 100 occupations expected to face significant shortages over the next decade i.e. up until 2033. Based on the projections from Economic Policy Directorate (EPD) and the Canadian Occupational Projection System (COPS), this forecast highlights the challenges and opportunities ahead for workers, employers and policymakers.

Growing Demand for Skilled Workers in Canada鈥檚 Labour Market

By 2033, Canada is projected to have about 8.1 million job openings driven by:

• 2.6 million new positions created through economic growth
• 5.5 million replacement jobs with 4.3 million vacancies due to retirements as baby boomers exit the workforce

With 68.1% of job openings arising from retirements, the labour market would face significant gaps. Moreover, 75% of these roles will require post secondary education or management experience emphasising the demand for skilled professionals.

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While on the supply side, approximately 8.2 million job seekers will enter the workforce, including:

• 5.9 million recent graduates, school levers
• 2.6 million immigrants supported by Canada's immigration policies
• A net loss of 1,80,000 workers exiting the labour pool

While supply and demand appear balanced at a macro level, sector specific shortages are expected to create challenges in the Canadian job market.

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Which Sectors will be Most Affected?

The ESDC鈥檚 analysis covers 485 of 516 occupations under the National Occupation Classification (NOC) system. Labour shortages could impact key industries leading to project delays, wage inflation, and pressure on essential services

Critical Shortage Areas:

Meanwhile, 17 occupations, mainly in arts and culture, are projected to have a labour surplus showing the demand imbalances will vary across industries

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How this Influences the Immigration and Workforce Planning?

Canada's immigration policies play a key role in addressing labour gaps. The latest ESDC report suggests that, while immigration targets have been slightly adjusted downwards (as of October 2024) the list of occupations facing shortages remain largely unchanged.

For skilled professionals, these forecasts highlight strong job prospects in high demand fields and employers and policy makers must strategize effectively to attract and retain talent in these critical sectors.

Top 100 Occupations Facing Shortages Until 2033

Canada is bracing for a labour shortage across multiple industries with over 100 occupations expected to face significant gaps by 2033. The demand was skilled professionals is particularly high in healthcare, trades, engineering, and education where shortages could impact essential services and economic progress. Listed below are the top sectors which would face labour shortages, along with the occupations at critical risk

1. Healthcare

The healthcare sector faces the highest risk with 38 occupations experiencing work posts, shortages due to an ageing population and increasing demand for medical services.

2. Natural and Applied Sciences

With 12 occupations in demand Canada's focus on engineering, technology and sustainability highlights the importance of a strong talent pipeline

3. Trades, Construction and Transportation

The construction industry leads with 25 occupations at risk, driven by infrastructure investments and growing housing market

4. Education and Social Services

With 11 occupations listed there is a strong demand for teachers, caregivers and social service workers

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5. Natural Resources and Agriculture

6. Sales and Service

7. Manufacturing and Utility

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The Road Ahead For Canada

Canada's labour market outlook shows a growing demand for professionals across critical sectors. with immigration. While immigration will help bridge gaps, employees must also focus on training programs, higher wages and automation to meet workforce needs. for job seekers. These in demand occupations offer a pathway to stable and lucrative carries in Canada

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