The Decline of Churn

Most hiring is the result of churn--the replacement of departing workers with new ones--rather than firm expansion or contraction. During the Great Recession, churn fell significantly as workers clung to their jobs, according to a new NBER study. In fact, four-fifths of the decline in hiring during the Great Recession was due to the decline of churn.

Source: National Bureau of Economic Research, Hiring, Churn and the Business Cycle, Working Paper #17910 ($5)