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Chart of the Day: Unfilled Vacancies
2nd April 2008
The seasonally adjusted number of unfilled vacancies in the UK economy has grown steadily over the last two years from just under 590,000 to a new high of 680,000. What might this figure be telling us?
It could be a sign that the UK economy is continuing to create plenty of new jobs – a sign that economic growth is remaining resilient in the face of the global financial crisis
It might be a sign that firms are finding it harder to fill their vacancies – perhaps an indication of occupational and geographical immobility of labour – with many of the unemployed either unable or unwilling to take the work that is available. This data might be used as evidence for a skills gap in the economy – a supply-side weakness of the labour market
Over the longer term, the economy routinely has a level of unfilled vacancies above 500,000 each month. Given that there are nearly 30 million people in full-time or part-time employment – do you think that this is a high or a low figure?
The data shows the 3 month average for unfilled vacancies – with one of the data series being ‘seasonally adjusted’. Look at the unadjusted figures – explain the pattern of vacancies that you observe during a representative year.
PowerPoint Chart
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.