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Study: COVID-19 and job displacement: Thinking about the longer term

Released: 2020-06-10

It is too early to know how many Canadian workers will lose their job as a result of the COVID-19 pandemic and what will happen to them financially after job loss.

However, a number of facts emerge from the past. While these facts do not necessarily allow accurate predictions of the impact that COVID-19 will have on job displacement, they provide a long-term perspective from which forthcoming labour market developments can be assessed.

This study highlights some of these facts. During the 1990-1992 and 2008-2009 recessions, roughly 45% of all laid-off workers were permanently laid off. The remainder were temporarily laid off.

From the late 1970s to the early 2010s, at least one in five permanently laid-off workers saw their real earnings decline by at least 25% five years after job loss.


The article "COVID-19 and job displacement: Thinking about the longer term," released today as part of the series StatCan COVID-19: Data to Insights for a Better Canada (Catalogue number45280001), is now available.

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