Job Finding Rate
Categories: Econ
See: Unemployment Rate.
Ever wonder why 5% is considered a great unemployment rate? Well, it is; it means most of the world (who wants to work) is working. Getting unemployment down to a theoretical 0% unemployment would mean literally everybody is employed, and that nobody is in-between jobs. But in our freeish-working market society, there’s a small chunk of people in-between jobs at any given time.
The job finding rate is the rate at which people can find jobs. The faster they can find jobs, the smaller that pool of unemployed people will be.
Dialing in the exact job finding rate can be tricky though...the metrics are hard to come by. For instance, the internet might have increased the job finding rate, but it’s also possible that the internet led to increased unemployment, since people were more likely to change jobs with the ease of job-finding on the web. That’s because the job finding rate and the quitting rate, a.k.a. the “job separation rate,” could both be affected by the internet.
Mind trip.