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IAB LinkedIn Reallocation Radar

The IAB LinkedIn industry switch radar maps current and future sideways movements of employees in the labour market. The radar is calculated by taking the average of two components:

  • Current switches: the current ratio of people changing to a new job in a different industry
  • Future switches: the current ratio of applications for jobs in a different industry relative to total applications

The IAB LinkedIn industry switch radar tracks switching behaviour almost in real time. In addition, the analysis of job applications provides a strong prognostic indicator of future switching behaviour. The radar is published every six months.

Job switches are recorded when a LinkedIn user updates their profile and assigns their new job to one of the 20 standard industries defined by the platform that differs from the industry they had selected for their previous role. Applications are measured using the online application form provided by LinkedIn. All data is aggregated and anonymised. Monthly time series are adjusted for seasonal effects.

One indicator of this is the IAB-LinkedIn sector change radar. It can be used to track movements on the labour market practically in real time. This is because a change is usually preceded by an application - and it is precisely this data that is available in LinkedIn. We use this data to create a leading indicator for the industry changes expected in the near future.

Job changes are measured when LinkedIn members update their profile and specify a job in another of the 20 industries standardised in LinkedIn. Applications are recorded via the online application form in LinkedIn. All data is aggregated and anonymised. The monthly time series are seasonally adjusted.

The result: after the coronavirus pandemic, the momentum of change has slowed once again with the energy crisis. Employees are currently switching comparatively little between sectors. This may be due to the fact that companies are increasingly holding on to their scarce labour force. However, there are signs of a trend reversal in 2024: Sector changes are stabilising and applications from other sectors are cautiously increasing.

The figure shows a graph consisting of three lines. The bottom line shows the share of job changes from other sectors in all hires as a percentage. The time series starts at 44 per cent and rises briefly at the beginning of the Corona crisis. Then it falls below pre-crisis levels, normalises again from mid-2021, but falls again from 2022. The top line shows the share of applications from other sectors as a percentage of all applications. The time series starts at 72 per cent. It rises for about a year at the beginning of the Corona crisis. After that it falls and stagnates in 2023. The middle line shows the course of the IAB-LinkedIn reallocation radar in percent, the mean of both components. This time series rises at the beginning of the corona crisis, but then drops significantly until 2023. All time series show a slight trend reversal in 2024. Source: LinkedIn, own calculations. ©IAB

Table: The IAB LinkedIn Reallocation Radar

Month/YearComponent 1:
career transitions from other industries, shares in all hires in %		Component 2:
applications from other industries, shares in all applications in %		IAB LinkedIn Reallocation Radar, mean value of the components 1 and 2
January 201971.8743.8257.85
February 201971.6643.9757.82
March 201972.0344.6458.33
April 201971.8944.4458.16
May 201971.5644.2657.91
June 201971.5344.1257.82
July 201971.6644.1657.91
August 201971.5544.8158.18
September 201971.3944.6358.01
October 201971.2944.4757.88
November 201971.4746.3158.89
December 201971.5147.6459.57
January 202071.5944.4958.04
February 202071.5344.9658.25
March 202072.0746.1559.11
April 202072.5747.2259.9
May 202072.8144.9258.87
June 202072.6144.8958.75
July 202072.744.3758.54
August 202072.8444.8758.86
September 202072.9244.1358.53
October 202072.9844.5358.75
November 202072.7143.6858.2
December 202072.644.4758.54
January 202172.8144.2858.54
February 202172.6844.1558.42
March 202172.3944.0858.23
April 202172.4943.958.19
May 202172.3444.6558.49
June 20217245.1858.59
July 202171.9244.2658.09
August 202171.8444.8858.36
September 202171.2744.7858.03
October 202171.5744.4157.99
November 202171.8845.5758.72
December 202171.4744.9758.22
January 202271.5744.8358.2
February 202271.2145.258.2
March 202271.1744.5457.86
April 202271.1144.757.9
May 202271.144.9958.05
June 202270.8644.5657.71
July 202270.7145.1857.94
August 202270.7843.9557.36
September 202270.7744.3657.56
October 202271.0344.7757.9
November 202270.5444.1857.36
December 202270.7543.8357.29
January 202370.5443.9357.24
February 202370.7443.256.97
March 202370.4742.8456.65
April 202370.2542.8456.54
May 202370.3942.2656.33
June 202370.5642.1356.34
July 202370.7142.6556.68
August 202370.541.4955.99
September 202370.4942.0356.26
October 202370.2741.7556.01
November 202370.3241.5355.92
December 202370.2940.7655.52
January 202469.9841.755.84
February 202470.3741.3755.87
March 202470.9141.9356.42
April 202370.5841.7356.15
May 202470.4940.9955.74
June 202470.7541.1755.96

Source: LinkedIN, own calculations.

Authors

Professor Enzo Weber

Date of publication

2024/10/31

Downloads

IAB Linkend Reallocation Radar(JPG)

Rights of use

The IAB LinkedIn Reallocation Radar is published under the following Creative Commons license: Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

Publication medium

The IAB-LinkedIn Reallocation Radar: “Great Resignation” is not a trend

Weber, Enzo; Erer, Murat (2023): The IAB-LinkedIn Reallocation Radar: “Great Resignation” is not a trend, In: IAB-Forum 14th of August 2023, https://www.iab-forum.de/en/the-iab-linkedin-reallocation-radar-great-resignation-is-not-a-trend/, Retrieved: 14th of August 2023

Period analysed

January 2019 until June 2024