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Uses and Limitations

This indicator measures the prospects of re-entry into employment of retrenched workers. It allows us to identify vulnerable workers who find it difficult to secure re-entry into employment after layoff.   
A low re-entry rate could also be the result of workers taking a break from the labour force rather than a weak job market. An analysis of the change in re-entry rate over time should therefore be made in the context of other indicators on the labour market. Also, the indicator could be cohort-specific. Even if the state of the labour market is unchanged, two different cohorts of retrenched workers could yield different re-entry rates, depending on the profile of the workers involved. Also, the data based on administrative records do not capture workers who went into self or informal employment or undergo training while looking for a job.