Abstract
Archived Content
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
Over the last three decades, Canada has experienced three recessions: one that started during the early 1980s; a second that began during the early 1990s; and the most recent one, which led to employment declines starting in October 2008. For each recession, this study: a) examines which workers were laid-off; b) quantifies layoff rates; and c) assesses the proportion of workers that found a job shortly after being laid-off. The layoff concept used includes temporary layoffs as well as permanent layoffs.
The study shows that the most recent recession was associated with lower layoff rates and higher short-term re-employment rates (following layoffs) than the previous two recessions. It was also of shorter duration. Total employment took 27 months to return to its pre-downturn level, compared to 53 months during the early 1990s and 40 months during the early 1980s. While newly hired workers had a higher risk of layoff than high-seniority workers during all three recessions, the former saw their layoff rates drop significantly during the most recent downturn. In contrast, layoff rates of high-seniority workers did not fall during the most recent downturn. As a result, high-seniority workers?a group that tends to experience substantial and sustained earnings losses?accounted for a greater share of all laid-off workers during the most recent downturn than during the downturns of the early 1990s and of the early 1980s.
Keywords: worker displacement; layoffs; employment; job loss; wage losses
- Date modified: