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

(with Murillo Campello and Gaurav Kankanhalli)

Journal of Financial and Quantitative Analysis, Forthcoming

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.