Fraser Institute News Release: AI can help mitigate shrinking labour force by increasing productivity of existing workers and adding new ones

VANCOUVER, BC, June 10, 2025 /CNW/ - As Canada's labour force shrinks due to aging and slowing rates of immigration, artificial intelligence (AI) can help by increasing the number of available workers and improving worker productivity, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
"While there's a common perception that AI will eventually lead to mass unemployment, it actually opens the door to the labour market for people who may have been on the outside looking in," said Morley Gunderson, professor emeritus of economics at the University of Toronto and author of Can AI Mitigate Our Labour Force Problems?
For example, AI can facilitate more effective job-matching between employers and job seekers including retirees who want to return to work, students who want part-time jobs, and new immigrants.
AI can also improve employment prospects for people with disabilities by equipping employees with assistive technologies (screen readers, speech recognition software, etc.) and helping make driverless vehicles, "smart" wheelchairs and other AI-powered resources more widely available.
At the same time, AI can help increase productivity growth, which has stagnated in Canada.
For example, AI can help connect small and dispersed geographical markets with larger commercial centres, facilitate trade (within Canada and internationally), help small firms grow, and increase the ability of scientists and engineers to develop innovations that fuel productivity growth.
"Rather than unduly fearing AI, Canadians should welcome the promise of AI to increase our ability to produce goods and services and improve our living standards," said Steven Globerman, senior fellow at the Fraser Institute.
The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org
SOURCE The Fraser Institute

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