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The great Canadian recovery: The impact of COVID‐19 on Canada's labour market

Author

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  • Stephen R.G. Jones
  • Fabian Lange
  • W. Craig Riddell
  • Casey Warman

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 the first few months of the pandemic and a broad though gradual recovery through to the end of 2021. Le grand rétablissement canadien : les répercussions de la COVID‐19 sur le marché du travail au Canada. Le marché du travail canadien a vécu une période sans précédent de turbulences après le début de la pandémie de COVID‐19. Nous analysons les principaux changements à l'aide des statistiques habituelles sur la population active et les nouvelles données sur les offres d'emploi. En envisageant une phase de cessation temporaire des relations d'emploi suivie d'une phase de recherche et de jumelage plus habituelle sur le marché du travail, nous utilisons des données sur l'effectif et la mobilité pour comprendre les principaux développements. Nous constatons des changements spectaculaires touchant l'emploi, le chômage et l'activité sur le marché du travail au cours des premiers mois de la pandémie et un vaste rétablissement graduel jusqu'à la fin de 2021.

Suggested Citation

  • Stephen R.G. Jones & Fabian Lange & W. Craig Riddell & Casey Warman, 2023. "The great Canadian recovery: The impact of COVID‐19 on Canada's labour market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 791-838, August.
    • Handle: RePEc:wly:canjec:v:56:y:2023:i:3:p:791-838
    DOI: 10.1111/caje.12660
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    References listed on IDEAS

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    1. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2020. "Labor demand in the time of COVID-19: Evidence from vacancy postings and UI claims," Journal of Public Economics, Elsevier, vol. 189(C).
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    Cited by:

    1. Lalé, Etienne, 2024. "Assessing Labor Market Conditions in Canada with Public-Use Microdata," IZA Discussion Papers 16722, Institute of Labor Economics (IZA).
    2. 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.
    3. Alejandra Bellatin & Gabriela Galassi, 2022. "What COVID-19 May Leave Behind: Technology-Related Job Postings in Canada," Staff Working Papers 22-17, Bank of Canada.
    4. 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).
    5. 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).

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    More about this item

    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
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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