Regional labor markets in the corona year 2020: resilient, prosperous locations and increasing disparities

ABSTRACT

The "Corona Crisis" caused by the Covid-19 virus has led to distortions in many labour markets in 2020 and may have exacerbated pre-existing social inequalities. This study asks to what extent different regions and types of regions are affected differently by the labour market effects of the Corona crisis. Using various descriptive analyses at the district level, the influence of the settlement structure, the economic structure and the income power of locations on the "Corona effects" in the labour market is examined. Key indicators of short- and medium-term dynamics are the share of short-time work as well as changes in 2020 compared to 2019 in cumulative entries into and exits from unemployment, in the same entries and exits in December ("compensation effect"), and in the unemployment rate. It can be shown that especially locations without initial structural problems have come through the Corona year 2020 relatively well. However, there is a danger that in the course of the Corona crisis, especially in the agglomeration areas, the inequality between persons and groups of persons within the labour markets will increase further and lastingly. According to the results, the Corona crisis could also contribute to an increase in disparities between locations with comparable settlement structures, at least in the medium term.