Labour reallocation, which is historically linked to the spikes in unemployment that occur during recessions, and its correlation to enhanced productivity is the subject of a paper published by the Bank of Canada in January.

The authors ask six questions:
• whether the pace of reallocation in Canada has changed;
• whether reallocation can be explained by movements in the exchange rate and  commodity prices;
• if shifts have improved productivity;
• how the pace of labour reallocation has grown;