Help-Wanted Index (HWI)
Candlefocus EditorThe Help-Wanted Index is produced by economics and labor market researchers working with The Conference Board, a business research organization. It is based on the help-wanted advertising component of the Conference Board’s Labor Market Index of jobs available (LMX). The LMX is a comprehensive measure of U.S. labor demand, combining help-wanted ads, job postings, and layoff and hiring notifications from in-person, online, and print sources.
The Help-Wanted Index is released monthly, providing a leading economic indicator that reflects current labor demand. The index’s numerical value reflects the number of available job postings as a portion of the labor force. A higher value indicates that there are more job opportunities in the market, which is an indication that the economy is expanding. Conversely, a lower number can indicate a contraction of the job market and a negative forecast for the overall economic situation.
The index takes into account the total number of help-wanted ads, the type of job they are advertising, the wage level associated with the vacancy, the industry in which the job vacancy exists, the source of the job vacancy, and total labor force estimates. By combining all of these factors, The Conference Board is able to accurately reflect the current level of labor demand within the U.S. economy.
In addition to its economic forecasting capabilities, the Help-Wanted Index can be used to identify skills gaps and imbalances between job openings and candidates. For example, researchers can use the index to determine which job vacancies are most in demand, which sectors and industries are currently the most vibrant, or which regions of the country are experiencing higher labor demand.
The Help-Wanted Index is an important resource for businesses, jobseekers, and economists alike. For companies, understanding the current level of labor demand can help them meet their recruiting goals and forecast their hiring needs. For jobseekers, it provides valuable insight into which job openings are in higher demand, so that they can target their resumes to the most lucrative positions. Finally, for economists, it provides a valuable indicator for gauging the strength of the job market and the overall economic conditions of the United States.