What are demand pressure and relative supply?

Demand pressure and relative supply are both ways of understanding the relationship between the supply of candidates and employer demand for those candidates in a market.

Demand pressure is demand divided by supply, or how many job openings there are per candidate in a market.

Relative supply is supply divided by demand, or how many candidates there are per job opening in a market. 

What can I use this data for?

You can use demand pressure and relative supply to understand whether a given market favors employers or candidates. Low demand pressure or high relative supply means that employers have an advantage and that it will be easier to hire because there are more candidates to choose from per opening.

Conversely, the high demand pressure or low relative supply means that candidates have an advantage and it will be more difficult to hire because there are more jobs to choose from per candidate.

Acquire: Where do you get the data for demand pressure and relative supply?

Our demand data is based on job postings from thousands of sources, including job boards, corporate sites, partner feeds, news sites, staffing websites, and applicant tracking systems. Learn more about our demand data.

Our supply data is based on results from national government censuses and labor market surveys. Learn more about our supply data.

Organize: How do you prepare this data for analysis?

Both job posting data and census/labor market data must be processed and standardized before being used to calculate demand pressure and relative supply. Read more about how we prepare our demand and supply data for analysis.

Analyze: How do you calculate demand pressure and relative supply?

We calculate demand pressure by dividing the demand (number of job postings that match your search) by the supply (the estimated number of candidates that match your search). We calculate relative supply by dividing the supply by the demand.

In Recruit, we calculate demand using job postings currently online, while in Plan, we use job postings that were posted during a specified time range.

Learn more about how we calculate demand and supply individually.

Deliver: How do you represent demand pressure and relative supply?

Demand pressure is represented as a value rounded to three or four decimal places. Relative supply is represented as a value rounded to the nearest whole number or one decimal place. For both metrics, we sometimes translate the numerical value into one of five categories on a scale:

  • Very high

  • High

  • Moderate

  • Low

  • Very low