# Canadian demographic and labour market shifts > Live situation record from CLSTR: https://clstr.news/situations/canadian-demographic-and-labour-market-shifts > Updated: 2026-10-14T19:57:41.000Z. Sources: 5. Developments: 2. Canada is experiencing a demographic and economic transition marked by an ageing population and a shrinking workforce. Analysis from the Bank of Canada indicates that population growth reached its lowest rate in over a century in 2025, driven by the retirement of the baby-boom generation and policy changes that reduced immigration and temporary residency levels. These shifts have raised concerns regarding weakened economic growth, reduced demand, and lower productive capacity. While immigration has historically bolstered the labour force, it has also increased pressure on housing and public services. To address the shrinking workforce, there is an increasing focus on technological investment to enhance productivity. Concurrently, government officials have identified specific labour supply gaps that threaten major national projects. Parliamentary secretaries have noted a disconnect between job seekers and industry needs, citing skill mismatches and a lack of investment in employee training compared to other OECD nations. Additionally, employers have reported a shortage of soft skills, which has been described as a lingering consequence of the pandemic. ## Timeline ### 2026-10-14: Canada faces skilled workforce shortages amid economic ambitions Liberal MPs warn that Canada’s push for major industrial projects is straining a workforce facing skill mismatches, training barriers, and lower corporate investment in employee development. 2 sources. https://clstr.news/cluster/canada-faces-skilled-workforce-shortages-amid-economic-ambitions ### 2026-10-12: Canada faces economic shifts amid shrinking workforce and demographic changes Canada faces economic challenges as population growth hits a century-low, driven by an ageing population and declining immigration, necessitating a focus on productivity and technology. 2 sources. https://clstr.news/cluster/canada-faces-economic-shifts-amid-shrinking-workforce-and-demographic-changes --- Cite as: Canadian demographic and labour market shifts. CLSTR, https://clstr.news/situations/canadian-demographic-and-labour-market-shifts