The US Beveridge Curve, December 2000 to August 2026: An Exact Slope and Convexity Formula, a Decomposition of the Post-2022 Fall in Job Openings, and Why Matching Efficiency Has Not Recovered

Between March 2022 and August 2026 the US job-openings rate fell from 7.49% to 4.17% of the labour force while unemployment rose only from 3.67% to 4.14%. I use JOLTS and Current Population Survey data from FRED for December 2000 to August 2026 (308 months) to explain how. With a Cobb–Douglas matching function and flow balance between hires and separations, I derive the Beveridge curve in closed form and prove that its elasticity is −(α+u/(1−u))/(1−α) and that its curvature is exactly vα/[(1−α)²u²(1−u)²] > 0. Estimated on 2001–2019, the vacancy elasticity of the job-finding proxy is 0.6934 (se 0.0368), so along the curve near 4% unemployment a 1% fall in openings should raise unemployment by about 2%. The observed ratio since March 2022 is −4.875, so most of the fall in openings was not a move along the curve. An exact log decomposition assigns −0.3263 of the −0.5855 log fall in openings to lower separations, −0.1346 to a partial recovery of matching efficiency, and only −0.0531 to higher unemployment. Matching efficiency remains 0.23 log points below its 2001–2019 mean. I also show that the unrestricted matching regression rejects constant returns, because JOLTS hires barely respond to the number of unemployed.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-10-29
DOI
https://doi.org/10.5281/zenodo.23750597
Primary Topic
Labor market dynamics and wage inequality
Type
preprint
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preprint

The US Beveridge Curve, December 2000 to August 2026: An Exact Slope and Convexity Formula, a Decomposition of the Post-2022 Fall in Job Openings, and Why Matching Efficiency Has Not Recovered

Manoj Kumar Aguru
Zenodo (CERN European Organization for Nuclear Research)
Labor market dynamics and wage inequality
preprint

The US Beveridge Curve, December 2000 to August 2026: An Exact Slope and Convexity Formula, a Decomposition of the Post-2022 Fall in Job Openings, and Why Matching Efficiency Has Not Recovered

Manoj Kumar Aguru
preprint en

Abstract

Between March 2022 and August 2026 the US job-openings rate fell from 7.49% to 4.17% of the labour force while unemployment rose only from 3.67% to 4.14%. I use JOLTS and Current Population Survey data from FRED for December 2000 to August 2026 (308 months) to explain how. With a Cobb–Douglas matching function and flow balance between hires and separations, I derive the Beveridge curve in closed form and prove that its elasticity is −(α+u/(1−u))/(1−α) and that its curvature is exactly vα/[(1−α)²u²(1−u)²] > 0. Estimated on 2001–2019, the vacancy elasticity of the job-finding proxy is 0.6934 (se 0.0368), so along the curve near 4% unemployment a 1% fall in openings should raise unemployment by about 2%. The observed ratio since March 2022 is −4.875, so most of the fall in openings was not a move along the curve. An exact log decomposition assigns −0.3263 of the −0.5855 log fall in openings to lower separations, −0.1346 to a partial recovery of matching efficiency, and only −0.0531 to higher unemployment. Matching efficiency remains 0.23 log points below its 2001–2019 mean. I also show that the unrestricted matching regression rejects constant returns, because JOLTS hires barely respond to the number of unemployed.

Zenodo (CERN European Organization for Nuclear Research)
Chaitanya (IN)
Decent work and economic growth
Labor market dynamics and wage inequality
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