Working Paper: NBER ID: w29098
Authors: 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 fond 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.
Keywords: COVID-19; Labour Market; Employment; Unemployment; Canada
JEL Codes: E24; E32; I14; I18; I3; J21; J23; J31; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| job leavers (J63) | characteristics of job leavers (J63) |
| COVID-19 (I15) | decline in employment (J63) |
| COVID-19 (I15) | increase in unemployment (J64) |
| marginally attached individuals (J22) | officially unemployed behavior (J65) |
| COVID-19 (I15) | decline in labour force participation (J21) |
| marginally attached individuals (J22) | strong attachment to workforce (J29) |
| COVID-19 (I15) | rapid recovery of labour market (J48) |
| younger individuals (J14) | greater initial shocks (C92) |
| younger individuals (J14) | recover more quickly (I12) |
| employed-absent behavior (J22) | temporary layoff unemployment (J65) |