Cleveland Fed, Report: Job Loss Consequences and the Pandemic Recession

“Despite unprecedented disruptions to the labor market during the 2020 pandemic recession, workers displaced during that period experienced better employment and earnings outcomes than workers displaced during previous recessions. We find that the sharp recovery in aggregate labor market conditions after the pandemic recession accounts for these differences. Our regression analysis suggests that the industry and occupation composition of lost jobs, the prevalence of worker recalls, and the uptake of UI benefits are unlikely explanations.”