Is this time <i>really</i> different? How the impact of the COVID‐19 crisis on labour markets contrasts with that of the global financial crisis of 2008–09

Abstract

The COVID-19 pandemic resulted in a more severe labour market crisis in 2020 than that witnessed during the 2009 global financial crisis. As a consequence of lockdown measures, which have been the main cause of damage to labour markets, the deepest impacts in 2020 have been found in middle-income economies, while certain sectors, such as accommodation and food services, and groups, especially young women, have proved to be particularly vulnerable. Contrary to adjustment processes during the global financial crisis, the COVID-19 crisis has resulted in a greater rise in inactivity than in unemployment. Policy support needs to be maintained to avoid an unequal recovery.

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