Workers Laid-Off During the Last Three Recessions: Who Were They, and How Did They Fare?

Statistics Canada Analytical Branch Studies Working Paper No. 337

45 Pages Posted: 15 Dec 2011

See all articles by Winnie Chan

Winnie Chan

Statistics Canada

Rene Morissette

Government of Canada - Business & Labour Market Analysis Division

Marc Frenette

Government of Canada - Business & Labour Market Analysis Division

Date Written: September 20, 2011

Abstract

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

JEL Classification: J6, J63, E24, J2

Suggested Citation

Chan, Winnie and Morissette, Rene and Frenette, Marc, Workers Laid-Off During the Last Three Recessions: Who Were They, and How Did They Fare? (September 20, 2011). Statistics Canada Analytical Branch Studies Working Paper No. 337, Available at SSRN: https://ssrn.com/abstract=1937865 or http://dx.doi.org/10.2139/ssrn.1937865

Winnie Chan

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-3884 (Phone)
613-951-5403 (Fax)

HOME PAGE: http://www.statcan.gc.ca/socialanalysis

Rene Morissette (Contact Author)

Government of Canada - Business & Labour Market Analysis Division ( email )

24th Floor - R.H. Coats Building
Tunney's Pasture
Ottawa, Ontario K1A 0T6
Canada
613 951-3608 (Phone)
613-951-5403 (Fax)

Marc Frenette

Government of Canada - Business & Labour Market Analysis Division ( email )

24th Floor - R.H. Coats Building
Tunney's Pasture
Ottawa, Ontario K1A 0T6
Canada
613-951-4228 (Phone)
613-951-5403 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
98
Abstract Views
731
Rank
486,005
PlumX Metrics