Contrasting U.S. and European Job Markets during COVID-19

RePEc Short ID: ppe260
ORCID iD: 0000-0002-2216-110X

Eyméoud, Jean-Benoît; Petrosky-Nadeau, Nicolas; Santaeulàlia-Llopis, Raül; Wasmer, Etienne

Journal Article

Contrasting U.S. and European Job Markets during COVID-19

Abstract: The onset of the COVID-19 pandemic and the unprecedented slowing of economic activity that followed caused severe disruptions to labor markets around the globe. In contrast to the United States, European Union countries funded short-time work programs to maintain jobs during a period of lockdown that was expected to be transitory. This succeeded in avoiding sharp increases in unemployment early in the recession. However, if the pandemic leads to a permanent reallocation of economic activity, short-time work programs may slow the process of workers moving from shrinking to growing sectors of the economy.

Keywords: COVID-19; labor markets; european job market; united states job market;