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Canadian Labour Market Dynamics during COVID-19

Author

Listed:
  • Jones, Stephen R. G.

    (McMaster University)

  • Lange, Fabian

    (McGill University)

  • Riddell, W. Craig

    (University of British Columbia, Vancouver)

  • Warman, Casey

    (Dalhousie University)

Abstract

The Canadian labour market experienced a period of unprecedented turmoil following the onset of the COVID-19 pandemic. We analyze the main changes using standard labour force statistics and new data on job postings. Envisaging a phase of temporary severing of employment relationships followed by a phase of more standard labour market search and matching, we use stock and flow data to understand key developments. We find dramatic changes in employment, unemployment and labour market attachment in 2020 and, looking forward to 2021, signs of an unusual recovery with co-existing strong labour demand and stubborn persistence in depressed employment rates.

Suggested Citation

  • Jones, Stephen R. G. & Lange, Fabian & Riddell, W. Craig & Warman, Casey, 2021. "Canadian Labour Market Dynamics during COVID-19," IZA Discussion Papers 14588, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14588
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    Cited by:

    1. Sandra M. Leitner & Oliver Reiter, 2024. "The response of labour demand to different COVID-19 containment measures: evidence from online job postings in Austria," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-23, December.
    2. Yahong Zhang, 2022. "Unemployment Benefits and Wage Subsidies -- Effects of Labour Market Policies during a Pandemic," Working Papers 2203, University of Windsor, Department of Economics, revised Sep 2022.
    3. Pierre Brochu & Jonathan Créchet, 2021. "Survey Non-response in Covid-19 Times: The Case of the Labour Force Survey," Working Papers 2109E, University of Ottawa, Department of Economics.
    4. Bellatin, Alejandra & Galassi, Gabriela, 2022. "What COVID-19 May Leave Behind: Technology-Related Job Postings in Canada," IZA Discussion Papers 15209, Institute of Labor Economics (IZA).
    5. Carrillo-Tudela, Carlos & Clymo, Alex & Comunello, Camila & Jäckle, Annette & Visschers, Ludo & Zentler-Munro, David, 2023. "Search and reallocation in the COVID-19 pandemic: Evidence from the UK," Labour Economics, Elsevier, vol. 81(C).
    6. Erick Rangel González & Irving Llamosas-Rosas & Sara Hutchinson Tovar, 2024. "Analysis of the initial effects of COVID-19 on jobs affiliated to IMSS, at the national and regional level, by sex and age groups," Working Papers 2024-08, Banco de México.

    More about this item

    Keywords

    COVID-19; coronavirus; job loss; unemployment; employment; transition rates;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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