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Job Creation and Destruction in Recession

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  • Lawless, Martina

    (Central Bank of Ireland)

Abstract

This note provides an update on rates of job creation and destruction in the light of the dramatic slowdown in the economy. Firm-level data on employment changes has been collected by Forf´as for almost forty years and allows us to compare the current rates of job turnover to those in previous recessionary episodes. The speed of the slowdown in job creation and increase in job destruction are found to be unprecedented, although the total decline in employment was greater in the 1980s. Higher rates of job destruction were particularly evident in smaller and in Irish-owned firms. Net falls in employment were observed in almost all sectors. We show however that jobs also continued to be created across the economy, albeit at a slower pace than previously.

Suggested Citation

  • Lawless, Martina, 2012. "Job Creation and Destruction in Recession," Economic Letters 01/EL/12, Central Bank of Ireland.
    • Handle: RePEc:cbi:ecolet:01/el/12
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    File URL: https://centralbank.ie/docs/default-source/publications/economic-letters/economic-letter---vol-2012-no-1.pdf?sfvrsn=8
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    References listed on IDEAS

    as
    1. Konings, Jozef, 1995. "Job Creation and Job Destruction in the UK Manufacturing Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 5-24, February.
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    Cited by:

    1. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.
    2. Lawless, Martina & McCann, Fergal & McIndoe-Calder, Tara, 2012. "SMEs in Ireland: Stylised facts from the real economy and credit market," Quarterly Bulletin Articles, Central Bank of Ireland, pages 99-123, April.
    3. Morgenroth, Edgar, 2013. "The Regional Dimension of the Unemployment Crisis," Research Notes RN2012/4/3, Economic and Social Research Institute (ESRI).
    4. Martina Lawless, 2014. "Age or size? Contributions to job creation," Small Business Economics, Springer, vol. 42(4), pages 815-830, April.
    5. Criscuolo, Chiara & Gal, Peter N. & Menon, Carlo, 2014. "The dynamics of employment growth: new evidence from 18 countries," LSE Research Online Documents on Economics 60286, London School of Economics and Political Science, LSE Library.
    6. Agnew, Kerri & Lyons, Ronan C., 2018. "The impact of employment on housing prices: Detailed evidence from FDI in Ireland," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 174-189.
    7. repec:esr:wpaper:rn2012/4/3 is not listed on IDEAS
    8. McCoy, Daire & Lyons, Sean & Morgenroth, Edgar & Palcic, Donal & Allen, Leonie, 2016. "The impact of local infrastructure on new business establishments," MPRA Paper 69074, University Library of Munich, Germany.
    9. Lawless, Martina, 2013. "Age or Size? Determinants of Job Creation," Research Technical Papers 02/RT/13, Central Bank of Ireland.

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