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June 27, 2016STUDY: HIRES AND LAYOFFS IN CANADA'S ECONOMIC REGIONS: EXPERIMENTAL ESTIMATES, 2003 TO 2013 A recent study from Statistics Canada, Hires and Layoffs in Canada’s Economic Regions: Experimental Estimates, 2003 to 2013, constructs experimental estimates of hiring and layoff for 69 Economic Regions in Canada using administrative data sources such as tax and employment records for the 2003-2013 period.
While common labour force indicators including employment and unemployment rates provide valuable information, they do not fully capture flows into and out of firms.
This study defined new hires as employees who start a job with a new employer in a given year and still work for that employer the following year. Short term hires were excluded. Layoffs were defined as workers who are laid off in a given year and who are not re-employed by that employer in the same or following year. Rates were expressed as a percent of paid employment in a region.
The main findings of the study were as follows:
- Hires and layoffs were substantial relative to employment growth during economic expansions and recessions.
- Economic regions that display relatively higher layoff rates tend to be small and have a high proportion of employees involved in temporary jobs, some of which are seasonal jobs in agriculture, forestry, fishing, and hunting.
- Regions with higher layoff rates did not necessarily have lower hiring rates.
- During the 2008-2009 recession, firms in most regions adjusted by both reducing hiring and increasing layoffs, although decreases in hiring were more important.
Source: "Hires and Layoffs in Canada's Economic Regions: Experimental Estimates, 2003 to 2013," which is part of Economic Insights (Catalogue number 11-626-X)
Related Release: Analytical Studies: Methods and References: "Hiring and Layoff Rates by Economic Region of Residence: Data Quality, Concepts and Methods"