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Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey

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  • Guven, Cahit
  • Sotirakopoulos, Panagiotis
  • Ulker, Aydogan

Abstract

We examine the short-term labour market effects of COVID-19 and the associated national lockdown in Australia by estimating person-fixed-effects models using the Longitudinal Labour Force Survey. COVID-19 decreased labour force participation (LFP) by 2.1%, increased unemployment by 1.1% and reduced weekly working hours by 1.1. The national lockdown decreased LFP by 3.3%, increased unemployment by 1.7%, and decreased weekly working hours by 2.5. The probability of working on Fridays decreased by 10% while working fewer hours due to being on leave, work shifts, not having enough work and losing jobs all increased due to the lockdown. The pandemic and the lockdown increased underemployment and job search efforts significantly. In terms of heterogeneity of these effects, our analysis shows that those with up to high-school education experienced larger reductions in their LFP and working hours than others. However, immigrants and individuals with shorter job tenure or occupations unsuitable for remote work were hit the hardest in terms of unemployment.

Suggested Citation

  • Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan, 2020. "Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey," GLO Discussion Paper Series 635, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:635
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    Cited by:

    1. Andrew E. Clark & Conchita D’Ambrosio & Anthony Lepinteur, 2021. "The fall in income inequality during COVID-19 in four European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 489-507, September.
    2. Andrew E. Clark & Anthony Lepinteur, 2022. "Pandemic Policy and Life Satisfaction in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 393-408, June.
    3. Hoshi, Kisho & Kasahara, Hiroyuki & Makioka, Ryo & Suzuki, Michio & Tanaka, Satoshi, 2022. "The heterogeneous effects of COVID-19 on labor markets: People’s movement and non-pharmaceutical interventions," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    4. Kisho Hoshi & Hiroyuki Kasahara & Ryo Makioka & Michio Suzuki & Satoshi Tanaka, 2021. "Trade-off between job losses and the spread of COVID-19 in Japan," The Japanese Economic Review, Springer, vol. 72(4), pages 683-716, October.
    5. A. Cetrulo & D. Guarascio & M. E. Virgillito, 2022. "Working from home and the explosion of enduring divides: income, employment and safety risks," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 345-402, July.

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    More about this item

    Keywords

    COVID-19; National Lockdown; Labour Market; Short-term; Australia;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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