Report: Canadian energy workforce faces wave of retirements through 2035

(WO) — Canada's energy industry could face significant workforce challenges over the next decade as retirements accelerate and demand grows across both traditional and emerging energy sectors, according to a new labor market outlook from Careers in Energy, a division of Energy Safety Canada.

The report projects the industry will create approximately 18,400 new direct jobs by 2035 while more than 54,200 workers become eligible for retirement during the same period. Combined, those factors could generate a hiring requirement of roughly 72,600 workers over the next decade.

Canada's energy sector currently employs about 192,500 workers directly, with an additional 370,000 indirect jobs supported through the industry's supply chain.

While oil and gas exploration and production, oil sands, pipelines, energy services and refining remain central to Canada's energy system, workforce demand is also being shaped by growth in LNG, carbon capture and storage (CCS), low-carbon hydrogen and biomass-based fuels.

The report warns that labor and skills shortages could begin emerging as early as 2027, particularly in drilling and servicing operations, field operations, engineering, skilled trades, transportation and heavy equipment roles.

“At a time when Canada is asked to step up as a global energy supplier, the workforce behind that ambition is stretched thin,” said Kevin Krausert, CEO and co-founder of Avatar Innovations. “This report makes clear that the skills shortages are real and coming fast.”

According to the report, technology adoption, automation and operational efficiencies are allowing companies to produce more energy with fewer workers overall. At the same time, growing technical complexity is increasing demand for specialized skills across engineering, operations, business and technical disciplines.

Energy Safety Canada said coordinated workforce planning, training and upskilling will be critical to maintaining Canada's position as a major global energy producer and exporter.

The report also noted that energy sector compensation remains among the highest in Canada, with average total pay exceeding the national average by more than two times.