Abstract
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This study examines how the risk of job loss and the short-term earnings losses of laid-off workers evolved between the late 1970s and the mid-2000s. In aggregate, Canadian workers were less likely to be permanently laid-off in 2005-2007 than in 1978-1980, two comparable points in the business cycle. Workers in industries other than manufacturing who were laid-off had smaller median short-term earnings losses in 2005-2007 than did their counterparts in the late 1970s. Men aged 25 or older who were laid-off in the manufacturing sector in 2005-2007 experienced larger short-term earnings losses than did their counterparts in the late 1970s. Women who were laid-off in the manufacturing sector in 2005-2007 experienced short-term earnings losses that were either no different or smaller than the losses experienced by their counterparts in the late 1970s. In contrast, short-term earnings losses increased substantially between 1998–2000 and 2005–2007 for both men and women laid-off in manufacturing. This substantial increase in earnings losses coincides with the sharp employment decline observed in manufacturing since 2004.
Keywords: worker displacement; layoffs; employment; job loss; earnings losses
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