Labour demand in the UK during the COVID-19 pandemic: evidence from online job postings

Stepan Vacha
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Stepan Vacha: University of Warwick

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: The COVID-19 pandemic hit the labour market significantly through its impact on human health. This paper uses job posting data to measure the effect of the pandemic on labour demand in the UK throughout 2020, including estimates of recovery. It demonstrates the advantage of using online job vacancies to monitor the labour market compared to lagged estimates or surveys used by the Office for National Statistics (ONS). The labour demand shock is found to be of a similar size to those reported in the US or Sweden. Total weekly vacancies posted online were down by 39% during the fist wave and 12.5% in the second half of 2020, representing a significant, but not full recovery. The significance and size of the shock vary among different industries of the economy. All industries except Human health & social work activities have seen a significant drop in job postings due to the pandemic, with the Accommodation & food service activities sector being hit the most. Although the ONS estimates have grasped the main impact of the pandemic on vacancies, using real-time data can provide the policymakers with a much-needed timely information when dealing with a shock like the global health pandemic.

Keywords: Labor Demand; Labor Economics; Labor Market Data; COVID-19 JEL Classification: J230 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-hea
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