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Labour demand weakening during the COVID-19 pandemic in US cities: Stylised facts and factors related to regional resilience

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  • Alexandra Tsvetkova
  • Simone Grabner
  • Wessel Vermeulen

Abstract

This paper explores patterns of short-term labour demand weakening in Metropolitan Statistical Areas (MSAs) of the United States and the associated regional factors. The paper considers online job vacancy postings in February-June 2020. The data show that in larger MSAs, online job postings contracted more and the recovery was slower compared to smaller MSAs. Non-tradable service occupations, particularly those involving face-to-face interactions, contracted the most. The regression analysis reveals that different metropolitan characteristics were associated with the initial drop (February-April) and the recovery (May-June) in online job posting. The associations of online job postings with regional characteristics also differed between teleworkable (with high feasibility of performing work duties remotely) and non-teleworkable jobs. Cities with higher share of teleworkable employment had more online vacancy announcements during the first months of the COVID-19 pandemic.

Suggested Citation

  • Alexandra Tsvetkova & Simone Grabner & Wessel Vermeulen, 2020. "Labour demand weakening during the COVID-19 pandemic in US cities: Stylised facts and factors related to regional resilience," OECD Local Economic and Employment Development (LEED) Papers 2020/06, OECD Publishing.
  • Handle: RePEc:oec:cfeaaa:2020/06-en
    DOI: 10.1787/700d91ba-en
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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