The outbreak of COVID-19 led to a spike in the unemployment rate and a decrease in the number of job openings. It is unknown whether this shock in the labor market affects different groups of job seekers equally. With the help of a correspondence study I describe the relationship between labor market conditions and ethnic labor inequality. The results provide evidence of the changes in the ethnic employment gap during the early stage of the COVID-19 outbreak. Moreover, these changes are accompanied by fluctuations in the labor market competition.