What is the supply-demand ratio?

Supply-demand ratio 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 the supply-demand ratio to understand whether a given market favors employers or candidates.

A high supply-demand ratio 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, a low supply-demand ratio 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 supply and demand?

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 supply-demand ratio. Read more about how we prepare our demand and supply data for analysis.

Analyze: How do you calculate supply-demand ratio?

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

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 supply-demand ratio?

Supply-demand ratio is represented as a value rounded to the tenths place. We sometimes translate the numerical value into one of five categories on a scale:

  • Very high

  • High

  • Moderate

  • Low

  • Very low