Beveridge Curve

:= description of the inverse correlation between Unemployment and job openings


  • It may shift due to: increased in unemployment benefits, participation rate changes, etc. Beveridge curve

    The curve, named after William Beveridge, is hyperbolic-shaped and slopes downward, as a higher rate of unemployment normally occurs with a lower rate of vacancies.

  • The more inwards, the more efficient the labor market is.

    • i.e. the matchmaking between employer and employee is done well.