A Survey on the Impact of Covid-19 on the Labor Market

Abstract

The consequences of the Covid-19 pandemic had numerous social, political, and economic consequences. However, many studies suggest the labor market is the most affected area compared to the others. This is because some of the workers were forced to quit due to the presence of the pandemic at their places of employment. This particular paper focuses on performing a comprehensive survey on the effects of Covid-19 on labor markets. It is well known that the Covid pandemic has led to widespread job losses and a decrease in labor force participation. The unemployment rate had risen significantly, and the number of people out of work increased by millions. The labor market was also being affected by decreased working hours and increased temporary layoffs. The literature on labor economics is divided into two distinct areas of the effect of the pandemic. On one side, there are papers conducted on the general impact of the pandemic on the labor market, including demand and supply of labor, unemployment, and the heterogeneous effect of Covid on different groups and ages. On the other side, some studies are related to the Covid specific topics which are new to the literature of labor economics, such as work from home, remote working, lockdowns, and social distancing. One other evolving part is the Post Covid era and the recovery phase.