Permanent Layoffs in Canada: Overview and Longitudinal Analysis

Canadians are increasingly concerned about permanent layoffs since many feel job instability has increased in the 1990s. This paper uses a new longitudinal data source on worker separations to address three issues. First, what are the underlying causes of most permanent layoffs? Second, has there been an increase in the permanent layoff rate in the 1990s? Third, are most permanent layoffs rare events for workers or are they a continuation of a pattern of repeated layoffs? The type of postdisplacement adjustment assistance required depends on whether layoffs are rare or frequent events for most workers. Ordered logistic analysis is used to address this third issue.