Early retirement has fading appeal for many baby boomers, a Statistics Canada analyst said Wednesday, in response to the appointment of a federal panel examining the role of older Canadians in the workplace.

"The value that was placed on Freedom 55 is going away with the baby boom generation, and in this generation you have more people who want to stay connected," said Statistics Canada researcher Leroy Stone.

Yesterday, Human Resources Minister Monte Solberg suggested baby boomers could ease a projected labour shortage if they delay their retirement plans.

"Our population is aging and we are facing labour shortages," Solberg said in a release Tuesday. "Now is the time to look at issues faced by older workers and make sure that they have the knowledge and tools they need to contribute to a strong Canadian workforce."

Solberg said the panel, chaired by Ermine Cohen, a retired senator, will meet with provincial and territorial leaders, labour representatives, academics and employers.

But Stone said the labour market must change in order to keep older workers. Companies must begin offering incentives such as more flexible work hours, training programs and opportunities to upgrade skills, he said.

Stone dismisses the idea that delaying baby boomers' retirement would stall career growth for younger generations.

"Indeed you can expand the whole pie and use the older workers to mentor younger workers," he said.

Record numbers of Canadians retiring

As the baby boom generation approaches retirement, an unprecedented number of workers will be leaving the workforce. According to Canada's Urban Futures Institute, some 9.8 million Canadian baby boomers, people born between 1946 and 1964, are approaching retirement. By 2020, the number of Canadians retiring each year will be 425,000.

Statistics Canada said in 2005 about 3.6 million workers were within 10 years of retirement age, composing 22.1 per cent of the total, up from 10.3 per cent in 1986.

Ontario last year joined Alberta, Manitoba, Quebec, Prince Edward Island, Nunavut, the Yukon and the Northwest Territories in banning mandatory retirement, allowing workers over the age of 65 to continue working.

Some older employees exempt from benefit programs

But Bill Gleberzon, director of the Canadian Association for the 50-Plus, said that despite these changes many workplace barriers still exist. For example, companies can still exempt older employees from benefit programs, and in some provinces older workers are not eligible to file for workers' compensation if injured.

Gleberzon said the federal government should address these issues, suggesting that many older workers still need to work.

"For a lot of people, it's not a question of want," Gleberzon said. "It's a question of need."

A dearth of skilled workers prompted the Conference Board of Canada to warn last summer that Alberta could face a shortage of 332,000 workers by 2025 if current trends continue. The Alberta government in July released a strategy aimed at bringing 86,000 more people into the workforce over the next 10 years.

The newly appointed panel will discuss, among other issues, the projected impact of older Canadians in the workforce, barriers to employment and the status of displaced older workers. The panel is expected to release its report and recommendations this summer.