IDEAS home Printed from https://ideas.repec.org/p/imf/imfsdn/2022-001.html
   My bibliography  Save this paper

Labor Market Tightness in Advanced Economies

Author

Listed:
  • Mr. Romain A Duval
  • Yi Ji
  • Longji Li
  • Myrto Oikonomou
  • Carlo Pizzinelli
  • Mr. Ippei Shibata
  • Alessandra Sozzi
  • Kirsi Silvennoinen
  • Ms. Marina Mendes Tavares

Abstract

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.

Suggested Citation

  • Mr. Romain A Duval & Yi Ji & Longji Li & Myrto Oikonomou & Carlo Pizzinelli & Mr. Ippei Shibata & Alessandra Sozzi & Kirsi Silvennoinen & Ms. Marina Mendes Tavares, 2022. "Labor Market Tightness in Advanced Economies," IMF Staff Discussion Notes 2022/001, International Monetary Fund.
    • Handle: RePEc:imf:imfsdn:2022/001
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=515270
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kroczek, Martin & Koch, Andreas, 2024. "The reaction of wages to skill shortage in nursing," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302406, Verein für Socialpolitik / German Economic Association.
    2. Groiss, Martin & Sondermann, David, 2023. "Help wanted: the drivers and implications of labour shortages," Working Paper Series 2863, European Central Bank.
    3. Silvia Anna Maria Camussi & Andrea Locatelli & Graziella Mendicino & Francesca Modena, 2024. "Labour shortages in Italy: determinants, firm' responses and employment prospects," Questioni di Economia e Finanza (Occasional Papers) 887, Bank of Italy, Economic Research and International Relations Area.
    4. Schlenker, Oliver, 2024. "The deadly consequences of labor scarcity: Evidence from hospitals," Working Papers 42, University of Konstanz, Cluster of Excellence "The Politics of Inequality. Perceptions, Participation and Policies".
    5. Lorena Skufi & Adam Geršl, 2023. "Using Macrofinancial Models to Simulate Macroeconomic Developments During the COVID-19 Pandemic: The Case of Albania," Eastern European Economics, Taylor & Francis Journals, vol. 61(5), pages 517-553, September.
    6. Marco Guerrazzi, 2023. "Optimal growth with labor market frictions," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(4), pages 961-987, December.
    7. Serdar Birinci & Yusuf Mercan & Kurt See, 2024. "Mismatch Unemployment During COVID-19 and the Post-Pandemic Labor Shortages," Working Papers 2024-025, Federal Reserve Bank of St. Louis, revised 19 Sep 2024.
    8. David Evans & Claire Mason & Haohui Chen & Andrew Reeson, 2023. "An algorithm for predicting job vacancies using online job postings in Australia," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfsdn:2022/001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.