The COVID-19 “Reallocation Shock,” With Nick Bloom

The U.S. Labor Department’s jobs report in February 2020 showed the country’s lowest rate of unemployment in 60 years. Two months later, it showed the highest rate of unemployment in 80 years. As The Wall Street Journal put it, “The coronavirus pandemic is forcing the fastest reallocation of labor since World War II, with companies and governments mobilizing an army of idled workers into new activities that are urgently needed.” Rob and Jackie discuss this “reallocation shock”—and which sectors will fare well or bare the brunt—with Nick Bloom, the William Eberle Professor of Economics at Stanford University, who also co-directs the Productivity, Innovation and Entrepreneurship program at the National Bureau of Economic Research. 

Mentioned:

• Jose Maria Barrero, Nick Bloom, and Steven J. Davis, “COVID-19 Is Also a Reallocation Shock,” University of Chicago, Becker Friedman Institute, working paper No. 2020-59. 
• U.S. Bureau of Labor Statistics, Monthly Labor Review. 
• Nicholas Bloom bio: William Eberle Professor of Economics, Stanford University.