Corporate Hiring under COVID-19: Financial Constraints and the Nature of New Jobs
81 Pages Posted: 11 May 2020 Last revised: 4 Aug 2022
Date Written: May 8, 2020
Big data on job vacancy postings reveal multiple facets of the impact of Covid-19 on corporate hiring. Firms disproportionately cut on hiring for high-skill positions, with financially constrained firms reducing skilled hiring the most. Applying machine learning methods to job-ad texts, we find that firms have skewed their hiring towards operationally-core functions. New positions display greater flexibility regarding schedules and tasks. These firm-led hiring responses are robust to a host of labor supply-side controls capturing the "great resignation." While job posting levels show signs of recovery starting in late-2020, changes to the job posting descriptions and skill profiles seem long-lived in tests running through early 2022. Financial constraints amplify pandemic-induced changes to the nature of positions firms seek to fill, with constrained firms' new hires witnessing greater adjustments to jobs roles and employment arrangements.
Keywords: Covid-19, Machine learning, Corporate hiring, Human capital, Financial constraints, Work from home
JEL Classification: E24, J23, G31, G38, G39
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