Labor Market Tightness Measurement Using Job Application Data

This technical note presents a novel measure of labor market tightness based on job application data from LinkedIn, covering a wide range of countries, industries, and local labor markets since July 2019. The measure is derived from the ratio of active job listings that attract applicants to the number of job seekers applying to those listings. This approach allows for a real-time assessment of labor market conditions and captures significant trends, including the impact of the pandemic on labor markets globally. The findings indicate that labor market tightness peaked in 2022 and has since moderated, with many countries returning to pre-pandemic levels by early 2025. The document also discusses the methodology used to construct this measure, emphasizing the importance of accounting for both recruiting intensity by firms and job search effort by job seekers. The results show a correlation with external labor market measures, particularly in the United States, and highlight variations in labor market tightness across different regions.