The ratio of job vacancies to hiring is at an all-time high, and in line with the hiring difficulties highlighted by many employers. The Beveridge Curve, which captures the negative relationship between the job opening rate and the unemployment rate, has shifted substantially outward since the start of the pandemic. As a result, a given level of the unemployment rate is now associated with a much higher level of job openings, suggesting the increased difficulties employers are encountering in matching job vacancies with unemployed workers. This shift dwarfs a similar movement in the Beveridge Curve that was observed following the Great Recession. Several factors could be underlying the current shift, including uncertainties regarding the pandemic’s evolution, health concerns, childcare responsibilities, and enhanced unemployment benefits, which may be reducing job search intensity.
Chosen excerpts by Job Market Monitor. Read the whole story @ Federal Reserve Bank of San Francisco | FedViews: July 15, 2021