Oregon’s Labor Leverage Ratio Shows a Slightly Looser Labor Market – QualityInfo
With extremely low unemployment, the job market remains tight. Businesses struggle to find workers and jobseekers encounter plentiful opportunities. However, by several measures the labor market may be slackening just a little at the edges.
One measure that has received a lot of attention recently is the “Labor Leverage Ratio (LLR)” popularized by economist Aaron Sojourner at the W.E. Upjohn Institute.
The LLR is very simple: it is the ratio between the number of voluntary quits and the number of layoffs or firings. Looking at these two numbers in relation to one another is a proxy for measuring how confident each side of the labor market is – the buyers (employers) and the sellers (workers).
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