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Anatomy of a Pandemic Recovery Across Sectors and Regions

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Many have highlighted the disproportionate effect of the COVID-19 pandemic on certain sectors of the economy. The Bureau of Labor Statistics publishes data on employment by sector and state, which can show the fall and recovery in employment over the past two years at a disaggregated level. We find that just four of 10 sectors account for 75 percent of the fall in total employment during the pandemic. State-sector pairings with more dramatic falls in employment tended to see faster recoveries to compensate, indicating these job losses were often temporary separations. We also find evidence that the recovery in employment — particularly in the Leisure and Hospitality sector — has been faster in states with higher vaccination rates.

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  • Andrew Foerster & Nick Garvey & Pierre-Daniel G. Sarte, 2021. "Anatomy of a Pandemic Recovery Across Sectors and Regions," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 21(40), December.
  • Handle: RePEc:fip:fedreb:93808
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    File URL: https://www.richmondfed.org/publications/research/economic_brief/2021/eb_21-40
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    employment; COVID-19; pandemic;
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