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US / The Beveridge Curve is shifting

In an article on Thursday’s front page, I wrote about how long job vacancies are taking to fill, especially when you consider the abundance of unemployed workers.

Economists have been thinking about this issue for a couple of years now thanks to a shift in what is known as the Beveridge Curve.

Capture d’écran 2013-03-08 à 08.30.08

No, the Beveridge Curve is not about the relationship between Coke and Pepsi. It’s named for the British economist William Henry Beveridge, and it shows the relationship between the unemployment rate and the job vacancy rate.

In an economic expansion, the jobless rate is low and the job vacancy rate is high; a small share of workers are looking for jobs, and so when employers post a vacancy, the opening can be hard to fill. Or you can think about it the other way — if there are a lot of jobs available, then people will not have much trouble finding work, leading to low unemployment.

Chosen excerpts by Job Market Monitor 

Rampell

via An Odd Shift in an Unemployment Curve – NYTimes.com.

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US / Labor Economics / Is the the Beveridge curve shifthing ?

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When trying to determine if high unemployment is being caused by weak demand or by a mismatch between jobs and the skills of job seekers, economists look at the Beveridge Curve. It represents the relationship between the unemployment rate and the job vacancy rate. On a simple chart, vacancies are on the vertical axis and unemployment … Continue reading »

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US / It is a Long-Term Unemployment Crisis

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Evidences suggests that structural unemployment is worsening in many countries

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Since the onset of the Great Recession, there has been a change in the relationship between the unemployment rate and vacancy rate in the U.S.” write Bart Hobijn and Aysegul Sahin in Beveridge Curve Shifts across Countries since the Great Recession on frbsf.org. (Choosen excerpts by JMM to follow) This relationship, summarized by the Beveridgecurve, was remarkably … Continue reading»

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“We develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate” write Aysegul Sahin, Joseph Song, Giorgio Topa, and Giovanni L. Violante in Mismatch Unemployment on newyorkfed.org. How much did mismatch contribute to the dynamics of U.S. unemployment around the Great Recession? To address this question, we … Continue reading »

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