Beveridge curve
MacroDefinition
Empirical relationship between job openings and unemployment. Plots them against each other. Outward shifts (more openings AND higher unemployment) signal labor-market mismatches; healthy markets stay on the inward curve.
2020-2022 produced extreme outward shift — record openings WITH elevated unemployment, a sign of skills/geographic mismatches from COVID. Fed watches the Beveridge curve carefully for signals on labor market tightness.
2020-2022 produced extreme outward shift — record openings WITH elevated unemployment, a sign of skills/geographic mismatches from COVID. Fed watches the Beveridge curve carefully for signals on labor market tightness.