Using high-frequency job advertisement data, this paper evaluates dynamics among COVID-19, labor market, and government policies. We find that COVID-19 has caused a significant decline in labor demand, by as much as 30%, measured by the number of job advertisements. But the pandemic did not result in noticeable changes in advertised wages. Regarding the roles of government policies, the study finds that the “stay-at-home” measures implemented by states appeared to suppress labor demand. The Paycheck Protection Program (PPP) program helps to stabilize the advertised wages, but also suppresses labor demand. Finally, the pandemic may increase labor demand for certain healthcare-related occupations.

Document Type


Publication Date


Publisher Statement

Copyright © Springer Publications 2020


The definitive version is available at:

Full Citation:

Shuai, Xiaobing, Christine Chmura, and James Stinchcomb. “COVID-19, Labor Demand, and Government Responses: Evidence from Job Posting Data.” Business Economics, December 7, 2020.

Available for download on Wednesday, December 01, 2021