Abstract
The Covid-19 pandemic and associated recession have had dramatically different effects across industries, with some, including large parts of the leisure and hospitality sector, truly devastated and others, like much of the manufacturing sector, able to recover quite quickly. This has led some analysts to describe the pandemic as a reallocation shock, requiring substantial movement of labor across industries. Such a process likely requires substantial time, during which the natural rate of unemployment may be elevated. In this Chicago Fed Letter, we consider two questions: First, has the need for labor reallocation risen, and second, has there been an increase in the amount of reallocation that is actually occurring?
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
