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Search and Reallocation in the Covid-19 Pandemic: Evidence from the UK

Author

Listed:
  • Carlos Carrillo-Tudela
  • Camila Comunello
  • Alex Clymo
  • Annette Jäckle
  • Ludo Visschers
  • David Zentler-Munro

Abstract

The impact of the Covid-19 pandemic on the UK labour market has been extremely heterogeneous across occupation and industrial sectors. Using novel data on job search, we document how individuals adjust their job search behaviour in response to changing employment patterns across occupations and industries in the UK. We observe that workers changed their search direction in favour of expanding occupations and industries as the pandemic developed. This suggests job searchers do respond to occupation-wide and industry-wide conditions in addition to idiosyncratic career concerns. However, non-employed workers and those with low education levels are more attached to their previous occupations and more likely to target declining ones. We also see workers from declining occupations making fewer transitions to expanding occupations than those who start in such occupations, despite targeting these jobs relatively frequently. This suggests those at the margins of the labour market may be least able to escape occupations that declined during the pandemic.

Suggested Citation

  • Carlos Carrillo-Tudela & Camila Comunello & Alex Clymo & Annette Jäckle & Ludo Visschers & David Zentler-Munro, 2022. "Search and Reallocation in the Covid-19 Pandemic: Evidence from the UK," CESifo Working Paper Series 9621, CESifo.
    • Handle: RePEc:ces:ceswps:_9621
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    Cited by:

    1. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2023. "Perceived returns to job search," Labour Economics, Elsevier, vol. 80(C).
    2. Felder, Rahel & Sheldon, George, 2023. "Ein System zur laufenden Messung der Knappheitsverhältnisse auf beruflichen Arbeitsmärkten in der Schweiz," Working papers 2023/10, Faculty of Business and Economics - University of Basel.
    3. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2022. "Where have all the workers gone? Recalls, retirements, and reallocation in the COVID recovery," Labour Economics, Elsevier, vol. 78(C).
    4. Blanas, Sotiris & Oikonomou, Rigas, 2023. "COVID-induced economic uncertainty, tasks and occupational demand," Labour Economics, Elsevier, vol. 81(C).
    5. Yudai Higashi & Masaru Sasaki, 2024. "Did COVID-19 Deteriorate Mismatch in the Japanese Labor Market?," Discussion Paper Series DP2024-29, Research Institute for Economics & Business Administration, Kobe University.
    6. Gu, Ran & Zhong, Ling, 2023. "Effects of stay-at-home orders on skill requirements in vacancy postings," Labour Economics, Elsevier, vol. 82(C).
    7. Cristina Lafuente and Astrid Ruland, 2022. "Short-Time Work schemes and labour market flows in Europe during COVID," Economics Working Papers EUI ECO 2022/02, European University Institute.
    8. Pizzinelli, Carlo & Shibata, Ippei, 2023. "Has COVID-19 induced labor market mismatch? Evidence from the US and the UK," Labour Economics, Elsevier, vol. 81(C).
    9. Bennedsen, Morten & Larsen, Birthe & Schmutte, Ian M. & Scur, Daniela, 2023. "The effect of preserving job matches during a crisis," Labour Economics, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    job search; occupation mobility; industry mobility; Covid-19 pandemic;
    All these keywords.

    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
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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