Employment impacts of the COVID‐19 pandemic across metropolitan status and size

Abstract

We use individual-level data from the United States Current Population Survey to examine effects of the COVID-19 pandemic on employment losses across metropolitan area status and population size. Job losses spiked in April 2020, and partially recovered in subsequent months. Non-metropolitan and metropolitan areas of all sizes experienced significant employment losses, but the impacts were much larger in large metropolitan areas. The COVID-19 infection rate was initially higher in large metropolitan areas and this is a significant factor explaining the higher early employment losses in large metropolitan areas. However, higher job losses for large metropolitan areas persisted through summer and fall 2020 even after COVID-19 infection rates became higher in less populous areas. We find evidence of persistent effects of early COVID-19 infection rates on later employment.