The virus may still be raging, but it is not holding back the labor market. The figure below plots the % change in job listings at Indeed compared to February 1, 2020.

In the spring of 2020 few firms were hiring, listings fell. But they rebounded in 2021 and continue to rise. There are now 60% more jobs being advertised than before the pandemic. Recall, Winter of 2020 was a tight labor market, with a 3.5% unemployment rate. Even if unemployment is higher today, there is lots of demand for labor.

Source: FRED, St. Louis Fed

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.