Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China
This paper studies how the COVID-19 pandemic has aﬀected labor demand using over 100 million posted jobs on one of the largest online plat-forms in China. Our data reveals that, due to the eﬀects of the pandemic both in China and abroad, the number of newly posted jobs within the ﬁrst 13 weeks after the Wuhan lockdown on January 23, 2020 was about one third lower than that of the same lunar calendar weeks in 2018 and 2019. Using econometric methods, we show that, via the global supply chain, COVID-19 cases abroad and in particular pandemic-control policies by foreign governments reduced new job creations in China by 11.7%. We also ﬁnd that Chinese ﬁrms most exposed to international trade outperformed other ﬁrms at the beginning of the pandemic but underperformed during recovery as the Novel Coronavirus spread throughout the world.