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Vacancies to unemployment, often referred to as the vacancy-to-unemployment ratio, is a labor market indicator that compares the number of job openings with the number of unemployed people in a given economy and period. It provides a measure of labor market tightness, indicating how readily available jobs match with job seekers.

The ratio is typically calculated as V/U, where V is the count of vacancies and U is the count of unemployed individuals. Data sources vary by country but commonly come from national statistical offices and labor market surveys. In the United States, for example, vacancy data come from the Job Openings and Labor Turnover Survey (JOLTS) and unemployment figures come from the labor force surveys compiled by the Bureau of Labor Statistics. Comparable indicators are available from international sources such as Eurostat and the OECD.

Interpretation of the ratio is straightforward in principle: higher values suggest a tighter labor market, meaning more vacancies relative to unemployed workers, which can put upward pressure on wages and shorten job search durations. Lower values indicate slack in the labor market, with fewer openings per job seeker and potentially weaker wage dynamics. The ratio is often used alongside other indicators, such as the unemployment rate, the vacancy rate, and the Beveridge curve, to assess wage trends, hiring dynamics, and overall economic health.

Limitations include sensitivity to distinct data definitions and timing across regions, seasonal adjustments, and differential participation rates. The metric does not capture underemployment, skill mismatches, or the quality of vacancies, and it may obscure regional disparities within an economy. It should be interpreted as part of a broader set of labor market indicators.