We examine ‡uctuations in employment growth using Canadian data from 1976 to 2010. We consider a wide range of models and examine the sensitivity of our …ndings to modeling assumptions. The results from our most preferred model, which we selected using the Bayesian Information Criteria, indicate that most of the variance in employment growth that Campolieti gratefully acknowledges the …nancial support of the Social Sciences and Humanities Research Council of Canada (SSHRC). Please address correspondence to Michele Campolieti, Centre for Industrial Relations, University of Toronto, 121 St. George Street, Toronto, Ontario, M5S 2E8, Canada; email: campolie@chass.utoronto.ca. 1 is not due to the idiosyncratic error comes from domestic sources, with most of this coming from industry and provincial factors. Overall, we …nd external and national factors play a much smaller role in employment ‡uctuations than earlier research. We provide some possible explanations for these di¤erences.