Labor Market Tightness in Advanced Economies

Two years after the onset of the COVID-19 pandemic, a puzzle has emerged in several advanced economies: unfilled job vacancies have increased sharply even though employment has yet to fully recover. This note sheds light on three contributing factors, namely barriers to returning to work, changing w...

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Bibliographic Details
Main Author: Duval, Romain
Other Authors: Ji, Yi, Li, Longji, Oikonomou, Myrto
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2022
Series:Staff Discussion Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Labor Market Tightness in Advanced Economies  |c Romain Duval, Yi Ji, Longji Li, Myrto Oikonomou, Carlo Pizzinelli, Ippei Shibata, Alessandra Sozzi, Kirsi Silvennoinen, Marina Mendes Tavares 
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653 |a Health 
653 |a Infectious & contagious diseases 
653 |a Labor Economics Policies 
653 |a Deflation 
653 |a Aggregate Labor Productivity 
653 |a Labor 
653 |a Cycles 
653 |a Diseases: Contagious 
653 |a Economic theory 
653 |a Communicable diseases 
653 |a Income economics 
653 |a Employment 
653 |a Inflation 
653 |a Labour 
653 |a Job, Occupational, and Intergenerational Mobility 
653 |a Wages, Compensation, and Labor Costs: General 
653 |a Social impact of disasters 
653 |a Unemployment 
653 |a Promotion 
653 |a Demand and Supply of Labor: General 
653 |a Aggregate Human Capital 
653 |a Health Behavior 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Price Level 
653 |a Wage Level and Structure 
653 |a Labor market 
653 |a Business Fluctuations 
653 |a Wages 
653 |a Wage Differentials 
653 |a Intergenerational Income Distribution 
653 |a Labor economics 
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520 |a Two years after the onset of the COVID-19 pandemic, a puzzle has emerged in several advanced economies: unfilled job vacancies have increased sharply even though employment has yet to fully recover. This note sheds light on three contributing factors, namely barriers to returning to work, changing worker preferences away from certain types of jobs, and sectoral and occupational job mismatch. The note also assesses the impact of labor market tightness on wage growth, showing that it has been large for low-pay jobs but milder overall. Bringing disadvantaged groups of workers into the labor force, including by controlling the pandemic itself, would ease labor market pressures while amplifying the recovery and making it more inclusive