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Did the Covid-19 Recession Increase the Demand for Digital Occupations in the USA? Evidence from Employment and Vacancies Data

Author

Listed:
  • Jiaming Soh

    (University of Michigan)

  • Myrto Oikonomou

    (International Monetary Fund)

  • Carlo Pizzinelli

    (International Monetary Fund)

  • Ippei Shibata

    (International Monetary Fund)

  • Marina M. Tavares

    (International Monetary Fund)

Abstract

This paper investigates whether Covid-19 increased the demand for digital occupations in the United States. Using O*NET data to capture the occupations’ digital content, we find that the digital share of employment and vacancies increased more in regions that were hit harder during the pandemic. However, this was driven by a smaller decline in employment and vacancies for digital occupations relative to non-digital ones, and not by an absolute increase in demand for digital workers. While digital occupations were more insulated, particularly in urban areas and cognitive occupations, there is little evidence of a permanent shift.

Suggested Citation

  • Jiaming Soh & Myrto Oikonomou & Carlo Pizzinelli & Ippei Shibata & Marina M. Tavares, 2025. "Did the Covid-19 Recession Increase the Demand for Digital Occupations in the USA? Evidence from Employment and Vacancies Data," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 73(1), pages 316-337, March.
    • Handle: RePEc:pal:imfecr:v:73:y:2025:i:1:d:10.1057_s41308-024-00246-x
    DOI: 10.1057/s41308-024-00246-x
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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