Workers board up a luxury store in downtown Vancouver, B.C., Thursday, March 26, 2020. Businesses have been forced closed by the city and the province due to the COVID-19 outbreak. THE CANADIAN PRESS/Jonathan Hayward

COVID-19: A look at how layoffs turned permanent in past Canadian recessions

Statistics Canada report finds nearly half of layoffs in past recessions became permanent

While the impact of COVID-19 on Canadian employment have begun to emerge, the longterm effects still remain unknown, Statistics Canada noted in a Wednesday (June 10) report that compared 2020 job losses to those in prior downturns.

The agency said that on average, 12.4 per cent of Canadian workers between the ages of 15 and 64 have been laid off each month since February, compared to about 2.5 to 2.5 per cent in the first two months during previous economic crises.

However, layoffs in all economic downturns cited in Statistics Canada’s report – 1981-1982, 1990-1992 and 2008-2009 – hit younger workers worse than older ones. This year, 25.1 per cent of workers aged 15 to 24 lost their jobs, compared to 10.7 per cent of those aged 25 to 44 and 9.9 per cent o those 45 to 64 years of age.

Having a bachelor’s degree or higher lead to a reduction in how likely a worker is to be laid off. This year, 15.1 per cent of workers without a degree were laid off, compared to 7.2 per cent of those with a degree.

The amount of time at the job mattered too, with 8.2 per cent those working more than five years with the same employer getting laid off, compared to 17.7 per cent for people working less than two years.

What isn’t know, the agency said, is how many of the COVID-related layoffs will be permanent. In all three previous recessions studied, between 44.6 per cent and 46.4 per cent of laid off workers lost their jobs permanently.

Statistics Canada found that some workers who were permanently laid off, even if they later found other jobs, saw a sharp decrease in later earnings. Looking at permanently laid off workers between the late 1970s and the early 2010s, at least one-fifth saw their earnings drop by 25 per cent even five years after their initial job loss.

READ MORE: Fines, punishment for CERB ‘fraudsters’, not people who made mistakes

READ MORE: B.C.’s minimum wage bump won’t alleviate housing or COVID-19 pressures, advocates say

READ MORE: Payments for CERB top $40 billion as feds open doors for commercial rent help

READ MORE: Popular White Rock gelato shop to close after 25% rent increase


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CanadaCoronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Students/staff evacuate Rossland Summit School due to smell of smoke

SD20 says students in different learning groups didn’t come in contact with each other in evacuation

Man whose crime spree began in Nelson pleads guilty in death of female passenger

Anthony Cortez scheduled to be sentenced for 2017 incidents

Castlegar Rebels hold three-day camp before upcoming season

The camp looked a little different this year due to COVID-19 protocols

City of Rossland looks to secure $4M in funding for major infrastructure projects

The funds would help city complete museum renewal and Second Ave. project

Totem pole considered cultural appropriation removed from Nelson’s Hume School

The pole had also become rotted and was seen as dangerous to students

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Interior Health reports five new COVID-19 cases

Across the region, 34 cases are active

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Local councils important, Horgan says as municipal conference ends

B.C. NDP leader says ‘speed dating’ vital, online or in person

Penticton woman sentenced to one year in prison for manslaughter of teen boyfriend

Kiera Bourque, 24, was sentenced for manslaughter in the 2017 death of Penticton’s Devon Blackmore

B.C. Green leader says NDP abandoning environmental plan

Horgan’s claim of unstable government false, Furstenau says

Most Read