Most economists insist that while employment will bounce back after a sharp decline, the jobs that return will not be the same ones. Research shows startups create most new jobs while most older firms 'are net job destroyers.' In fact, Kane shows, the vast majority of jobs are created by startups during their dynamic phase while all other firms "are net job destroyers." It is well-known that skilled people with good jobs in the shrinking oil sector often ended up in positions that paid less. Instead, says Larsen, most workforce transition happens when young companies hire new workers with new sets of skills.

Source: CBC News August 17, 2020 07:52 UTC