It has been nearly two years since I posted an article on structural unemployment, specifically, looking at the Beveridge Curve. As noted in that prior post, the Bureau of Labor Statistics notes the relationship between the unemployment rate and the vacancy rate, also known as the Beveridge Curve, named after the British economist William Henry Beveridge (1879-1963). The economy’s position on the downward sloping Beveridge Curve reflects the state of the business cycle. For example, a greater mismatch between available jobs and the unemployed in terms of skills or location would cause the curve to shift outward, up and toward the right (emphasis added). Certainly the unemployment rate shows improvement, yet the curve has maintained its outward and upward shift during this recovery.
|From The Blog of HORAN Capital Advisors|