The Bureau of Labor Statistics (BLS) publishes job openings data from the Job Openings and Labor Turnover Survey (JOLTS). Data on job openings provide information on the number of workers that employers intend to hire in the near future. This information enriches knowledge of the U.S. labor market adding to current information on unemployment rates and employment. Many labor market indicators provide information on either the supply or demand for workers. Unemployment rates provide information on the supply of persons seeking work in excess of those currently employed. Alternatively, employment provides information on the demand for workers that is already met by employers. This report provides information on the ratio of unemployed persons per job opening, which may be useful to Congress in that it adds nuanced information to the current mix of labor market indicators. The ratio is unique in that it combines both supply and demand measures. Using unemployed persons from the Current Population Survey (CPS) and job openings from the JOLTS, the ratio divides the number of persons generally aged 16 and older who are not employed and actively looking for jobs by the number of job openings. The advantage to the statistic is that the ratio gauges the excess supply of labor relative to the unmet needs of employers. The ratio may add useful information to data on job openings or unemployment in that it takes into consideration how many persons are actively searching for work relative to the number of opportunities. Specifically, in this report, trends in the ratio of unemployed persons per job opening are tracked from January 2001 through February 2012. Comparisons are made with the unemployment rate, which has been used as a primary labor market indicator for many years. Figures and tables are provided that show the ratio in the aggregate for the United States and across industrial sectors. Four key findings arise from this analysis: 1. The ratio of unemployed persons per job opening is highly correlated with the unemployment rate between 2001 and 2012. 2. The ratio of unemployed persons per job opening rises during the recessionary periods covered in this data set. In the 2007-2009 recession, the ratio rises to very high levels, especially in the goods-producing industries (construction, manufacturing, mining, and logging). 3. Although the ratio is highly correlated with changes in the unemployment rate, the ratio saw modest improvements coming out of the recent recession sooner than the reductions in the unemployment rate. 4. Even though the ratio has reduced, it remains at higher levels than prior to the 2007-2009 recession. This section separately examines the two statistics in the ratio, unemployment and job openings. The ratio is built by placing the number of unemployed persons in the numerator and dividing by the number of job openings. Separately examining the trends in unemployment and job openings may add to understanding of policy issues related to the U.S. labor market. Comparing how these statistical indicators fluctuate through the economic cycles covered in this report may help in understanding trends in the ratio of unemployed persons per job opening. From January 2001 through February 2012, job openings fluctuated with the economy in countercyclical movement with the number of unemployed persons. Job openings are more numerous when the economy is growing and are fewer in number when the economy is in recession. During economic expansion, business establishments begin to sell more goods and services and correspondingly hire more workers. As the economy contracts or enters a recession, businesses need fewer workers and businesses may more likely freeze their job vacancies, close the opportunity or lay off workers. Unemployment rates rise during recessions as more persons are laid-off, and other persons looking for a job are unable to find work. Not all businesses hire and not all persons are employed during economic expansion, but the overall cyclical trend is observed at the aggregate level when summing across all employer establishments. Figure 1 depicts the monthly number of unemployed and job openings from January 2001 through February 2012. The upper line is the total number of unemployed and the lower line is the total number of job openings. Each point in both lines represents a month, where the months are listed along the x-axis. From the periods covered in this report, January 2001 through February 2012, the U.S. economy underwent two recessions, which are indicated by the shaded columns in Figure 1 . The beginning and ending dates of each recession are determined by the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER). The NBER declares a recession during the months when economic activity declines from its peak to its trough. The NBER further defines economic expansion as the period from trough to peak. The first recession begins in March 2001and ends in November 2001, which will be referred to as the 2001 recession. The second is from December 2007 through June 2009 and is referred to as the 2007-2009 recession. From January 2001 through February 2012, the number of unemployed persons fluctuates upward during recession and downward during most months of economic expansion. The number of unemployed persons decreases to 6.7 million in March 2007. In the following months, the total number of unemployed persons turns back upward reaching7.6 million during the first month of the 2007-2009 recession. In the months during the recession, unemployment rises more sharply reaching a high of 15.4 million persons in October 2009. Afterward, unemployment modestly decreases to 12.8 million in February 2012. Job openings also fluctuate with the business cycle, but increased during most expansionary months and decreased during recession. Figure 1 shows that in months following the 2001 recession, total job openings reaches its highest number of 4.7 million in November 2006 and again in March 2007. Afterward, job openings decrease as the economy entered the 2007-2009 recession. A low point of 2.2 million job openings is reached one month after the end of the recession in July 2009. After the recession, job openings turn back upwards and as of the end of the data on February 2012, the total number reached 3.6 million. Job openings differ from unemployment in that job openings led unemployment in the movement away from the troughs and peaks since 2006. Job openings began to increase in July whereas unemployment rates did not reach a high until October 2009. In 2007, job openings fell from the high point of 4.7 million in March of 2007, whereas the unemployment rate did not increase until two months later in May of 2007. If changes in job openings lead changes in unemployment, it may prove useful when considering some labor market policies. Whether job openings can anticipate a change in unemployment is uncertain. Although job openings led in the movement away from the high and low points after 2006, it may be coincidence, because job openings did not lead unemployment in 2003. Job openings reached a low of 3.1 million in September 2003 and unemployed persons reached a high of 0.2 million three months earlier in June 2003. More years of information would be needed to assess whether job openings might serve as an early indicator to changes in unemployment and under what circumstances. A further consideration is that even if job openings can serve as a leading indicator, its potential in practice is hampered because preliminary estimates are not published until two months after the survey is conducted and final estimates are published one month after the preliminary estimates. This means that preliminary estimates for November and final estimates for October are not available until January. This section introduces the ratio of unemployed persons per job opening and discusses trends in the ratio over time. A brief comparison with a few other commonly used labor market indicators is conducted to highlight the nuanced information added by the ratio. This section also includes some technical notes about the ratio and the data. As a brief introduction, the ratio of unemployed persons per job opening is constructed by taking the number of unemployed persons and dividing it by the number of job openings. Lower values for the ratio imply fewer unemployed persons for every job opening and possibly greater ease in finding a job. Higher values would indicate more unemployed persons searching for the same number of jobs and potentially more difficulty in finding work. The ratio uniquely combines supply and demand measures of the labor market. The number of unemployed persons is a measure of persons looking for work, or the supply of labor in excess of those currently employed. Job openings are a measure of the demand for workers that are not currently met by employers. It can be used to consider how easy it may be to find a job given both the number of other persons looking for work and the number of available job openings. Fewer unemployed persons or more job openings may both contribute to a greater ease in finding work. This section has four findings. The first sub-section on trends in the ratio establishes three of the basic findings: First, the ratio of unemployed persons per job opening is highly correlated with the unemployment rate between 2001 and 2012. Second, the ratio of unemployed persons per job opening rises during the recessionary periods covered in this data set. In the 2007-2009 recession, the ratio rises to very high levels. Third, even though the ratio has reduced, it remains at higher levels than prior to the 2007-2009 recession. The following section discussing the ratio of unemployed persons per job opening as a unique indicator identifies a fourth finding: While the ratio is highly correlated with changes in the unemployment rate, the ratio saw modest improvements coming out of the recent recession sooner than the reductions in the unemployment rate. Figure 2 graphs the monthly ratio of unemployed person per job opening from January 2001 through February 2012. The x-axis is in months and the y-axis on the left is the numerical value for the ratio. The figure also charts the unemployment rate, which is a commonly used labor market indicator. Values for the unemployment rate are listed on the y-axis on the right. Figure 2 establishes three basic findings in this dataset. Sections to follow will further refine the conclusions from this section. Finding 1 The ratio of unemployed persons per job opening is highly correlated with the unemployment rate between 2001 and 2012. Figure 2 shows that the unemployed persons per job opening ratio and the unemployment rate fluctuate with the business cycle. Both increase within months of the recession and decrease during economic expansion. Although not perfect, the two labor market indicators have roughly corresponded with the economy.