Job Search during the COVID-19 Crisis

Abstract

This paper measures the job-search responses to the COVID-19 pandemic using realtime data onvacancy postings and job ad views on Sweden’s largest online job board. First, new vacancypostings drop by 40%, similar to the US. Second, job seekers respond by searching lessintensively, to the extent that effective labour market tightness increases during the first threemonths after the COVID outbreak. Third, they redirect their search towards less severely hitoccupations, beyond what changes in vacancies would predict. Overall, these job search responses have the potential to amplify the labour demand shock.