Although net monthly changes in unemployment and employment are relatively small, the level of gross flows among the three conventional labor force states, Employment, Unemployment, and Not-in-the-Labor-Force, tends to be very large. This paper reviews Canadian evidence on monthly gross flows of labor for the period since 1976. It analyzes both seasonal and cyclical components of these flows and presents comparison with international evidence. It also discusses how these results bear on a number of important policy questions.
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