7/7/2015 - Improved employment services would help laid-off workers in Canada find a new job more quickly, according to a new OECD report.
Back to Work: Canada says that 2.2% of Canadian workers with at least one year of tenure are laid off each year when their company goes bankrupt or downsizes. Just under half of them find a new job within one year, and almost two-thirds within two years.
But many face significant earnings losses when rehired, with one in five having hourly wage cuts of 25% or more in their new job. Older workers with relatively long job tenure are particularly vulnerable: they are less likely to find a new job and, when they find, are likely to earn much less. Often, they also have to accept part-time or temporary work.
Canada has a range of services in place to avoid unnecessary redundancies and minimise the adverse consequences of retrenchment, especially for workers affected by mass layoffs. But intense adjustment assistance and early intervention services are not universal, leaving many displaced workers with insufficient re-employment support.
To help address these challenges, the OECD recommends that Canada:
The report is available at: http://www.oecd.org/employment/back-to-work-canada-9789264233454-en.htm
Read more about the OECD "Back to work" series: http://www.oecd.org/employment/displaced-workers.htm
For further information or comment, journalists should contact the authors of the report from the OECD’s Employment Policy Division: Gwenn Parent (tel. + 33 1 45 24 75 01) and Shruti Singh (tel. + 33 1 45 24 19 48).