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The US labour market after the COVID-19 recession

Author

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  • Gomez-Salvador, Ramon
  • Soudan, Michel

Abstract

The US economy has endured an exceptionally severe recession caused by the measures put in place to contain the spread of COVID-19. This occasional paper assesses the impact of this crisis on key labour market variables, such as (un-)employment, wages and productivity, and highlights the differences versus past recessions, with an emphasis on the global financial crisis (GFC). It also presents a comparison of developments in certain key variables between the euro area and the United States, and it discusses the outlook in the United States for the ongoing recovery. JEL Classification: J20, J30, J60

Suggested Citation

  • Gomez-Salvador, Ramon & Soudan, Michel, 2022. "The US labour market after the COVID-19 recession," Occasional Paper Series 298, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2022298
    Note: 375755
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecb.op298~f3f39e0b4f.en.pdf
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    References listed on IDEAS

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    1. Olivia Lofton & Nicolas Petrosky-Nadeau & Lily Seitelman, 2021. "Parental Participation in a Pandemic Labor Market," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2021(10), pages 01-05, April.
    2. Botelho, Vasco & Consolo, Agostino & Da Silva, António Dias, 2021. "Hours worked in the euro area," Economic Bulletin Articles, European Central Bank, vol. 6.
    3. Botelho, Vasco & Neves, Pedro, 2021. "The impact of the COVID-19 crisis on the euro area labour market for men and women," Economic Bulletin Boxes, European Central Bank, vol. 4.
    4. Gary Solon & Ryan Michaels & Michael W. L. Elsby, 2009. "The Ins and Outs of Cyclical Unemployment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 84-110, January.
    5. Robert E. Hall & Marianna Kudlyak, 2021. "Comparing Pandemic Unemployment to Past U.S. Recoveries," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2021(33), pages 1-05, November.
    6. Dan Andrews & Andrew Charlton & Angus Moore, 2021. "COVID-19, productivity and reallocation: Timely evidence from three OECD countries," OECD Economics Department Working Papers 1676, OECD Publishing.
    7. Bodnár, Katalin & O’Brien, Derry, 2021. "Labour supply developments in the euro area during the COVID-19 pandemic," Economic Bulletin Boxes, European Central Bank, vol. 7.
    8. Evgeniya A. Duzhak, 2021. "How Do Business Cycles Affect Worker Groups Differently?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2021(25), pages 01-06, September.
    9. Daniel Aaronson & Riley Lewers & Daniel G. Sullivan, 2021. "Labor reallocation during the Covid-19 pandemic," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue 455, pages 1-7, April.
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    Cited by:

    1. Lalinsky, Tibor & Anyfantaki, Sofia & Benkovskis, Konstantins & Bergeaud, Antonin & Bun, Maurice & Bunel, Simon & Colciago, Andrea & De Mulder, Jan & Lopez, Beatriz Gonzalez & Jarvis, Valerie & Krasno, 2024. "The impact of the COVID-19 pandemic and policy support on productivity," Occasional Paper Series 341, European Central Bank.

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    More about this item

    Keywords

    Beveridge curve; job flows; labour market tightness; Phillips curve; unemployment rate;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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