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

The Tumbleweeds perform at live and socially distant concert in Kimberley

On Friday, the Kimberley Golf Club hosted a wonderful event. For $30,… Continue reading

MP Morrison pushes for accountability following federal fiscal update

Kootenay-Columbia parliamentarian says it is time to restart the economy

RCMP confirm fatality in Bootleg Mountain biking accident

Kimberley RCMP have confirmed there was a fatality in a mountain biking… Continue reading

No serious injuries reported after head-on collision near Fort Steele

Traffic was stopped for several hours on Highway 93 while police investigated.

UPDATED: Interior Health to add 495 long-term seniors care beds

Nelson, Kelowna, Kamloops, Vernon and Penticton to receive new facilities

B.C. records 62 new COVID-19 cases, two deaths since Friday

Province has just over 200 active cases

Hotel rooms for B.C. homeless too hasty, NDP government told

Businesses forced out, but crime goes down, minister says

Wage subsidy will be extended until December amid post-COVID reopening: Trudeau

Trudeau said the extension will ‘give greater certainty and support to businesses’

B.C. government prepares for COVID-19 economic recovery efforts

New measures after July consultation, Carole James says

Tree planters get help with COVID-19 protective measures

Ottawa funds extra transportation, sanitizing for crews

Trudeau apologizes for not recusing himself from WE decision

He says his and his family’s longtime involvement with the WE organization should have kept him out of the discussions

Beverly Hills 90210 star’s family selling Vancouver Island Beach Resort

You can own Jason Priestley’s Terrace Beach Resort in Ucluelet for less than $5 million

New comet appears in pre-dawn sky above Cranbrook

Neowise can be seen without a telescope over the next couple of weeks

Most Read