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The State of Labour Market Churn in Canada

Author

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  • Olena Kostyshyna
  • Corinne Luu

Abstract

The literature highlights that labour market churn, including job-to-job transitions, is a key element of wage growth. Using microdata from the Labour Force Survey, we compute measures of labour market churn and compare these with pre-crisis averages to assess implications for wage growth. Overall, while it has improved in Canada, labour market churn broadly remains below pre-crisis averages. This relatively subdued level of churn is consistent with modest slack remaining in the Canadian labour market and thus helps explain the modest wage growth over the past few years.

Suggested Citation

  • Olena Kostyshyna & Corinne Luu, 2019. "The State of Labour Market Churn in Canada," Staff Analytical Notes 2019-4, Bank of Canada.
    • Handle: RePEc:bca:bocsan:19-4
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    References listed on IDEAS

    as
    1. Melissa Bjelland & Bruce Fallick & John Haltiwanger & Erika McEntarfer, 2011. "Employer-to-Employer Flows in the United States: Estimates Using Linked Employer-Employee Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(4), pages 493-505, October.
    2. Jonathan Lachaine, 2018. "Applying the Wage-Common to Canadian Provinces," Staff Analytical Notes 2018-16, Bank of Canada.
    3. Qiu, Theresa & Lu, Yuqian & Morissette, Rene, 2013. "Worker Reallocation in Canada," Analytical Studies Branch Research Paper Series 2013348e, Statistics Canada, Analytical Studies Branch.
    4. Mattila, J Peter, 1974. "Job Quitting and Frictional Unemployment," American Economic Review, American Economic Association, vol. 64(1), pages 235-239, March.
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    Cited by:

    1. Felipe Alves & Christian Bustamante & Xing Guo & Katya Kartashova & Soyoung Lee & Thomas Michael Pugh & Kurt See & Yaz Terajima & Alexander Ueberfeldt, 2022. "Heterogeneity and Monetary Policy: A Thematic Review," Discussion Papers 2022-2, Bank of Canada.

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    More about this item

    Keywords

    Labour markets; Recent economic and financial developments;

    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
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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