Job tenure

Some think that job stability, or long-term employment with a single employer, is decreasing. The data show, however, that job tenure has increased slightly for most years since 1982. The average tenure in a full-time job in 2002 was 105 months, over 16 months longer than in 1980. Part-time tenure was 62 months, an increase of more than 12 months from 1980.  

Job stability is measured using retention rate, which estimates the probability that a worker would continue at least one more year with the same employer. Generally, workers tend to hold on to their jobs when economic conditions decline, but are more likely to seek greener pastures when the labour market improves.

Job stability increased steadily during the 1990s, more than offsetting declines of the 1980s. In 2001, 80% of employees remained with the same employer at least one more year, compared with 76% in 1980 and 74% in 1989. These years were chosen for this comparison because each represents a peak year of the business cycle.

Job stability was higher among men than women in the 1980s, but the gap between them had all but closed by 2001. In 1980, about 78% of men held their jobs for at least one more year, compared with 74% of women. By 2001, the proportion for men increased slightly to 80%, whereas the proportion for women climbed substantially to 79%. Men and women with a university degree had greater job stability than their counterparts with a high school education or less. Job stability also rises with age, with workers aged 40 to 54 enjoying the most stability.

The overall rise in job stability in the 1990s was also partly the result of a significant decline in the number of short-term jobs. In 2001, only 47% of jobs ended within the first year after they started, compared with 53% of jobs in 1980 and 58% in 1989.