Across dozens of advanced economies, the appetite to hire is outpacing the number of people seeking employment. From 2010 to 2023, the number of job vacancies per unemployed person increased more than fourfold, on average, in these countries, senior partner and McKinsey Global Institute chair Sven Smit and colleagues explain. The findings point to a trend that may continue as the global workforce ages.
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A line chart plots the number of job vacancies per unemployed person in eight advanced economies from 2000 to 2023 and shows that the labor market has been tightening in most advanced economies, creating challenges for businesses seeking qualified workers. Three of these economies had more vacancies than unemployed people by 2022: in the US, the ratio of job vacancies to unemployed people increased from around 0.9 in 2010 to over 1.8 in 2022. In Japan, the ratio increased from slightly below 0.5 in 2010 to around 1.5 by 2022. In Germany, the ratio was around 1.5 by 2022.
In Australia, Canada, and the UK, the ratio reached close to 1.0 by 2022. In France and Italy, labor markets remained relatively slack, with the ratio remaining below 0.3 until 2020 and increasing to around 0.4 by 2022 in Italy, and the ratio remaining below 0.3 through 2022 in France.
Source: Australian Bureau of Statistics; Directorate of Research, Economic Studies and Statistics, France; Eurostat; International Labour Organization; Ministry of Health, Labor and Welfare, Japan; Statistics Canada; UK Office for National Statistics; US Bureau of Labor Statistics; McKinsey Global Institute analysis.
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To read the article, see “Help wanted: Charting the challenge of tight labor markets in advanced economies,” June 26, 2024.