DHI-DFH Measure of National Mean Vacancy Duration
January 2001 to June 2016

The duration measure reflects the vacancy concept in the Job Openings and Labor Turnover Survey (JOLTS).  Specifically, a job opening gets “filled” according to JOLTS when a job offer for the open position is accepted.  So the DHI-DFH vacancy duration statistics refer to the average length of time required to fill open positions.  Typically, there is also a lag between the fill date and the new hire's start date on the new job.

“Vacancy durations remain high by historical standards,” said Dr. Steven Davis, William H. Abbott Professor of International Business and Economics at the University of Chicago Booth School of Business.  “During the first half of 2016, employers in Health Services took an average of 48 working days to fill job openings, the longest job-filling time of any major sector in the U.S. economy.” Davis is a co-creator of the DHI-DFH Recruiting Intensity Index and the DHI-DFH Mean Vacancy Duration Measure. 

“As hiring managers search to find talent with specialized skills and candidates consider all available options before choosing a new employer, the time to fill positions remains highly elevated, potentially slowing work and progress at companies,” said Michael Durney, President and CEO of DHI Group, Inc. “Wise employers leverage both traditional and non-traditional products, like sourcing services and talent CRMs, to expedite the recruiting process and find qualified talent more quickly and efficiently.”


Recruiting Intensity Per Vacancy
January 2001 to June 2016

The DHI-DFH Recruiting Intensity Index, plotted in the above chart, increased to 1.01 in June, d from a revised value of 0.99 in May.

 


Measures of Labor Market Slack
January 2001- June 2016

The above chart displays four other indicators of labor market slack, including a new indicator developed at the Federal Reserve Bank of Richmond, alongside the mean vacancy duration.  All four measures in the chart point to considerable tightening of U.S. labor markets since mid-2009. The ratio of job vacancies to short term unemployment and the vacancy duration measure suggest a stronger labor market recovery than the quits rate or the ratio of job vacancies to all unemployed persons.