How does job vacancy duration inform a firm’s future profitability?

Julia Swerdlow, Research Analyst (London)

Post feature

This paper seeks to determine how the duration of job vacancies informs future firm profitability for low-skill vs high-skilled jobs. This study finds that firms that quickly fill low-skill job vacancies exhibit higher future profitability, and firms that take longer to fill high-skill jobs exhibit higher future profitability. The strength of this correlation is dependent on factors such as labour supply and hiring competition. However, the authors suspect that the results of this study may have been impacted by confounding factors such as applicants holding private information about the company, employee turnover and employee satisfaction.