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IAB LinkedIn Reallocation Radar

The economy is undergoing a transformation – rarely has the pressure to change been so great. The labour market also plays a role in the economic success of the transformation. This is because skills are central to economic innovation processes. And especially in the case of structural upheaval, it is important to develop employees with their skills in a targeted manner in emerging areas so that their abilities and work experience can continue to be used there.

The IAB-LinkedIn Reallocation Radar is one indicator for this. It can be used to track movements in the labour market in near real time. A change is usually preceded by an application – and it is precisely this data that is available on LinkedIn. We use this data to create a leading indicator for industry changes that can be expected in the near future.

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

The result: after the Covid pandemic, the rate of change slowed again with the energy crisis. Employees are currently switching between sectors relatively rarely. This may be because companies are increasingly retaining their scarce labour. However, a trend reversal is emerging for 2024: sector changes are stabilising, with applications from other sectors 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 201943.8271.8757.85
February 201943.9771.6657.82
March 201944.6472.0358.33
April 201944.4471.8958.16
May 201944.2671.5657.91
June 201944.1271.5357.82
July 201944.1671.6657.91
August 201944.8171.5558.18
September 201944.6371.3958.01
October 201944.4771.2957.88
November 201946.3171.4758.89
December 201947.6471.5159.57
January 202044.4971.5958.04
February 202044.9671.5358.25
March 202046.1572.0759.11
April 202047.2272.5759.90
May 202044.9272.8158.87
June 202044.8972.6158.75
July 202044.3772.7058.54
August 202044.8772.8458.86
September 202044.1372.9258.53
October 202044.5372.9858.75
November 202043.6872.7158.20
December 202044.4772.6058.54
January 202144.2872.8158.54
February 202144.1572.6858.42
March 202144.0872.3958.23
April 202143.9072.4958.19
May 202144.6572.3458.49
June 202145.1872.0058.59
July 202144.2671.9258.09
August 202144.8871.8458.36
September 202144.7871.2758.03
October 202144.4171.5757.99
November 202145.5771.8858.72
December 202144.9771.4758.22
January 202244.8371.5758.20
February 202245.2071.2158.20
March 202244.5471.1757.86
April 202244.7071.1157.90
May 202244.9971.1058.05
June 202244.5670.8657.71
July 202245.1870.7157.94
August 202243.9570.7857.36
September 202244.3670.7757.56
October 202244.7771.0357.90
November 202244.1870.5457.36
December 202243.8370.7557.29
January 202343.9370.5457.24
February 202343.2070.7456.97
March 202342.8470.4756.65
April 202342.8470.2556.54
May 202342.2670.3956.33
June 202342.1370.5656.34
July 202342.6570.7156.68
August 202341.4970.5055.99
September 202342.0370.4956.26
October 202341.7570.2756.01
November 202341.5370.3255.92
December 202340.7670.2955.52
January 202441.7069.9855.84
February 202441.3770.3755.87
March 202441.9370.9156.42
April 202441.7370.5856.15
May 202440.9970.4955.74
June 202441.1770.7555.96

Source: LinkedIN, own calculations.

Authors

Professor Enzo Weber

Date of publication

2024/10/30

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