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COVID-19, labor demand, and government responses: evidence from job posting data

Author

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  • Xiaobing Shuai

    (Chmura Economics & Analytics)

  • Christine Chmura

    (Chmura Economics & Analytics)

  • James Stinchcomb

    (Chmura Economics & Analytics)

Abstract

Using high-frequency job advertisement data, this paper evaluates dynamics among COVID-19, labor market, and government policies. We find that COVID-19 has caused a significant decline in labor demand, by as much as 30%, measured by the number of job advertisements. But the pandemic did not result in noticeable changes in advertised wages. Regarding the roles of government policies, the study finds that the “stay-at-home” measures implemented by states appeared to suppress labor demand. The Paycheck Protection Program (PPP) program helps to stabilize the advertised wages, but also suppresses labor demand. Finally, the pandemic may increase labor demand for certain healthcare-related occupations.

Suggested Citation

  • Xiaobing Shuai & Christine Chmura & James Stinchcomb, 2021. "COVID-19, labor demand, and government responses: evidence from job posting data," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(1), pages 29-42, January.
    • Handle: RePEc:pal:buseco:v:56:y:2021:i:1:d:10.1057_s11369-020-00192-2
    DOI: 10.1057/s11369-020-00192-2
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    References listed on IDEAS

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    1. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2020. "Labor demand in the time of COVID-19: Evidence from vacancy postings and UI claims," Journal of Public Economics, Elsevier, vol. 189(C).
    2. Alexander W. Bartik & Zoe B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton & Adi Sunderam, 2020. "When Should Public Programs be Privately Administered? Theory and Evidence from the Paycheck Protection Program," NBER Working Papers 27623, National Bureau of Economic Research, Inc.
    3. Granja, João & Makridis, Christos & Yannelis, Constantine & Zwick, Eric, 2022. "Did the paycheck protection program hit the target?," Journal of Financial Economics, Elsevier, vol. 145(3), pages 725-761.
    4. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "COVID-19 Employment Status Impacts on Food Sector Workers," IZA Discussion Papers 13334, Institute of Labor Economics (IZA).
    5. repec:cdl:indrel:qt042177j7 is not listed on IDEAS
    6. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.
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    Cited by:

    1. Sachiko Kazekami, 2022. "Regional differences in the epidemic shock on the local labor market and its spread," LABOUR, CEIS, vol. 36(1), pages 115-144, March.
    2. Xiaodi Zhang, 2024. "Public sector employment rigidity and macroeconomic fluctuation: A DSGE simulation for China," PLOS ONE, Public Library of Science, vol. 19(9), pages 1-26, September.
    3. Neeraj Bhandari & Kavita Batra & Soumya Upadhyay & Christopher Cochran, 2021. "Impact of COVID-19 on Healthcare Labor Market in the United States: Lower Paid Workers Experienced Higher Vulnerability and Slower Recovery," IJERPH, MDPI, vol. 18(8), pages 1-17, April.
    4. M. V. Kurbatova & I. V. Donova, 2023. "Labor Markets in Resource-Type Regions: Shocks of 2020," Regional Research of Russia, Springer, vol. 13(2), pages 252-259, June.
    5. Sandra M. Leitner & Oliver Reiter, 2024. "The response of labour demand to different COVID-19 containment measures: evidence from online job postings in Austria," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-23, December.
    6. Łukasz Arendt & Eugeniusz Kwiatkowski, 2023. "Kontrowersje wokół wpływu nowoczesnych technologii na zatrudnienie i bezrobocie," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 195-216.
    7. Otterby, Dawn & Crawley, Andrew & Gabe, Todd, 2023. "Effects of the Minimum Wage on U.S. County Labor Markets," MPRA Paper 116162, University Library of Munich, Germany.

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