Corporate Hiring under Covid-19: Financial Constraints and the Nature of New Jobs

Abstract

Big data on job postings reveal multiple facets of the impact of Covid-19 on corporate hiring. Firms disproportionately cut new hiring for high-skill positions, with financially constrained firms reducing skilled hiring the most. Applying machine learning methods to job-ad texts, we find that firms have skewed their hiring towards operationally-core functions. New positions display greater flexibility regarding schedules and tasks. While job posting levels show signs of recovery starting in late-2020, changes to job descriptions and skill profiles persist through early-2022. Financial constraints amplify these changes, with constrained firms’ new hires witnessing greater adjustments to job roles and employment arrangements.

Keywords: Covid-19, Machine learning, Corporate hiring, Human capital, Financial constraints, Work from home

JEL Classification: E24, J23, G31, G38, G39