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_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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Congressional Research Service (CRS)

 

The Unemployed and Job Openings: A Data Primer

Donald Hirasuna, Analyst in Labor Policy

January 31, 2013

http://www.fas.org/sgp/crs/misc/R42943.pdf

[full-text, 24 pages]

 

Summary

New information that adds to the mix of labor market indicators may be useful to Congress. The

ratio of unemployed persons per job opening provides information on how many unemployed

persons on average there are for every job opening. It adds to the current mix of labor market

indicators such as the unemployment rate, which is a measure of the excess supply of workers. In

addition, it adds to employment statistics, which measures the demand for workers that have

already been met by employers. By dividing the number of unemployed persons with the number

of job openings, the ratio gauges the excess supply of workers relative to the demand, where job

openings serve as a measure of the unmet need for workers. The resultant statistic compares the

number of persons who are actively searching for jobs to the number of available opportunities.

 

Four key findings arise from this analysis:

 

1. The ratio of unemployed persons per job opening is highly correlated with the

unemployment rate between 2001 and 2012.

2. The ratio of unemployed persons per job opening rises during the recessionary

periods covered in this data set. In the 2007-2009 recession, the ratio rises to very

high levels, especially in the goods-producing industries (construction,

manufacturing, mining and logging).

3. Although the ratio is highly correlated with changes in the unemployment rate,

the ratio saw modest improvements coming out of the recent recession sooner

than the reductions in the unemployment rate.

4. Even though the ratio has reduced, it remains at higher levels than prior to the

2007-2009 recession.

 

The analysis in this report combines two data sources:

 

• The Job Openings and Labor Turnover Survey (JOLTS), which provide

information from a survey of U.S. business establishments on the dynamic job

market where job openings are created, persons are hired, and employees leave.

 

• The Current Population Survey (CPS), which provides information on economic

and demographic information from U.S. households.

 

Contents

Introduction ...................................................................................................................................... 1

Unemployment and Job Openings ................................................................................................... 2

The Ratio of Unemployed Persons per Job Opening: Trends and Comparisons ............................. 4

Trends in the Ratio of Unemployed Persons per Job Opening: Basic Findings ........................ 5

A Unique Ratio: Differences from the Unemployment Rate and Other Labor Market

Measures ................................................................................................................................. 7

Differences Across Industrial Sectors .............................................................................................. 9

The Ratio of Unemployed Persons per Job Opening Within the Goods-Producing Sector ........... 14

Discussion ...................................................................................................................................... 15

 

Figures

Figure 1. Job Openings and Unemployed Persons in the United States .......................................... 3

Figure 2. Ratio of Unemployed Persons Per Job Opening and the Unemployment Rate ............... 6

Figure 3. Ratio of Unemployed Persons Per Job Opening Across Industrial Sectors ................... 12

Figure 4. Unemployed Persons Per Job Opening For Goods-Producing Industries ...................... 15

 

Tables

Table 1. Average Monthly Number of Job Openings, Unemployed Persons and Unemployed Persons Per Job Opening .................. 10

Table A-1. Unemployed Person Per Job Opening By Industry and Year ....................................... 17

Table A-2. Description of the Data Used in this Analysis ............................................................. 18

Table A-3. Aspects of the Data and the Ratio of Unemployed Persons Per Job Opening That May Be Relevant For This Report ............................ 19

 

Appendixes

Appendix. Additional Statistics by Industry and Information About the Datasets ........................ 17

 

Contacts

Author Contact Information........................................................................................................... 21

 

 

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