Report: Canadian Energy Workforce Faces Wave of Retirements Through 2035

Why It Matters

The emerging skills gap threatens Canada’s ability to meet growing energy demand and maintain its status as a global supplier, making coordinated upskilling essential for economic stability.

Key Takeaways

• 18,400 new direct jobs projected by 2035
• 54,200 workers eligible for retirement by 2035
• Hiring need totals about 72,600 positions
• Skills gaps expected in drilling, engineering, and trades by 2027
• Automation raises demand for specialized technical expertise

Pulse Analysis

Canada’s energy industry, employing roughly 192,500 direct workers and another 370,000 in the supply chain, faces a looming talent crunch. A new outlook from Careers in Energy forecasts 18,400 new direct positions by 2035 while more than 54,200 incumbents become retirement‑eligible, creating a net hiring demand of about 72,600 roles over the next decade. The pressure is amplified by the sector’s ambition to expand oil‑sand output, LNG projects, and emerging low‑carbon technologies, all of which require fresh labor pipelines.

The report flags skill shortages as early as 2027, especially in drilling, field operations, engineering, and heavy‑equipment trades. While automation and digital tools enable higher production with fewer hands, they also raise the bar for technical proficiency, pushing demand toward advanced engineering, data analytics, and carbon‑capture expertise. Growth areas such as liquefied natural gas, CCS, low‑carbon hydrogen and biomass fuels compound the challenge, as each introduces unique process controls and safety protocols that traditional trade curricula do not cover.

Addressing the gap will require coordinated workforce planning between industry, government and educational institutions. Upskilling programs, apprenticeship expansions, and targeted immigration pathways can replenish the pipeline before the 2027 tipping point. Because energy sector compensation remains more than double the national average, competitive pay can attract talent, but long‑term stability hinges on continuous learning ecosystems that align with evolving technology. Investing in digital training platforms also accelerates skill acquisition and reduces geographic barriers. Failure to act could erode Canada’s standing as a reliable global energy supplier and limit its ability to export low‑carbon solutions.