Web Trader MT5
A scatter plot of the unemployment rate against the job vacancy rate, named after British economist William Beveridge. In normal times the two move inversely: when unemployment falls, vacancies rise, and vice versa. The curve traces this inverse relationship and tends to be reasonably stable within a given economic cycle.
What economists watch for is shifts in the curve itself. If the curve moves outward; meaning higher vacancy rates at any given unemployment rate; it suggests the labour market has become less efficient at matching workers to jobs. Skill mismatches, geographic mismatches, or sectoral disruption can all shift the curve.
Example: The post-COVID US labour market produced a clear outward shift in the Beveridge Curve through 2021 and 2022. Vacancies hit record levels even as unemployment stayed moderately elevated, suggesting workers and jobs weren’t connecting; partly because the jobs available weren’t the jobs workers wanted, and partly because pandemic-era retirements and migration changed the underlying pool.
