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The Great Canadian Recovery: The Impact of COVID-19 on Canada's Labour Market

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 the first few months of the pandemic and a broad though gradual recovery through to the end of 2021.

Suggested Citation

  • Jones, Stephen R. G. & Lange, Fabian & Riddell, W. Craig & Warman, Casey, 2022. "The Great Canadian Recovery: The Impact of COVID-19 on Canada's Labour Market," IZA Discussion Papers 15404, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15404
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    Cited by:

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    2. Iwona Kaczmarek & Adam Iwaniak & Grzegorz Chrobak & Jan K. Kazak, 2025. "Integrating media sentiment with traditional economic indicators: a study on PMI, CCI, and employment during COVID-19 period in Poland," Journal of Computational Social Science, Springer, vol. 8(2), pages 1-23, May.
    3. Smart, Michael & Kronberg, Matthew & Lesica, Josip & Liu, Huju, 2025. "The employment effects of a pandemic wage subsidy," Journal of Public Economics, Elsevier, vol. 246(C).
    4. Etienne Lale, 2024. "Assessing Labour Market Conditions in Canada with Public-Use Microdata," Canadian Public Policy, University of Toronto Press, vol. 50(2), pages 217-231, May.
    5. Pierre Brochu & Jonathan Crechet, 2022. "Survey Non-Response in COVID-19 Times: The Case of the Labour Force Survey," Canadian Public Policy, University of Toronto Press, vol. 48(3), pages 451-472, September.
    6. 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).
    7. 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).

    More about this item

    Keywords

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    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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