Labor Market Flows and The Covid-19 Economy

Abstract

I examine labor market flows in the CPS through March 2020. Although there was a dramatic single month increase in the unemployment rate and exit rate from employment, most cyclical flows (hiring, employer-to-employer flows, quits) have not yet changed substantially. I show that increases in flows to non-employment are concentrated in a few sectors (hospitality, other services, and construction), suggesting that the economic slow-down was not yet widespread in March of 2020. However, I show that within-individual hours decreased in March 2020, and this reduction was broad based across industries, occupations, and demographic groups.

Keywords: Covid-19, Labor Market Flows, Hiring

JEL Classification: J21, J23, J63