Employment impacts of the COVID‐19 pandemic across metropolitan status and size

Abstract

We use individual‐level data from the United States Current Population Survey to examine effects of the COVID‐19 pandemic on employment losses across metropolitan area status and population size. Job losses spiked in April 2020, and partially recovered in subsequent months. Non‐metropolitan and metropolitan areas of all sizes experienced significant employment losses, but the impacts were much larger in large metropolitan areas. The COVID‐19 infection rate was initially higher in large metropolitan areas and this is a significant factor explaining the higher early employment losses in large metropolitan areas. However, higher job losses for large metropolitan areas persisted through summer and fall 2020 even after COVID‐19 infection rates became higher in less populous areas. We find evidence of persistent effects of early COVID‐19 infection rates on later employment.