Imbalances ratio

Understanding the imbalances ratio

What is the imbalances ratio?

The imbalances ratio (unemployment-to-vacancy ratio) compares the number of people currently unemployed to the number of job vacancies.  

The ratio is informed by unemployment data from the Labour Force Survey (LFS) and monthly vacancy data from the JVWS. It is calculated by dividing the number of unemployed people in a region by the number of open vacancies at a given time.  

Because unemployment and vacancies vary throughout the year, we recommend looking at the average of the ratio over the year, as well as the minimum and maximum values for each jurisdiction, to better understand how labour market conditions vary within each jurisdiction.

• The monthly ratio is calculated first. Then the annual average, minimum, and maximum rates are extracted from the monthly ratios.

What does the imbalances (unemployment-to-vacancy) ratio tell us about imbalances?

The unemployment-vacancy ratio shows how combining labour market indicators can provide clearer insight into labour market imbalances. By bringing together information on labour supply (unemployment) and employer demand (vacancies), the ratio helps explain how different parts of the labour market are interacting.  

When interpreted alongside other indicators—such as educational attainment, employment by occupation, and vacancies by occupation—it can provide a more fulsome picture of the labour market.  

Table notes

• The unemployment-to-vacancy ratio is calculated by dividing the number of unemployed individuals by the number of job vacancies. 
• Unemployment data is sourced from the Labour Force Survey (LFS), and vacancy data is sourced from the Job Vacancy and Wage Survey (JVWS). 
• Monthly ratios are calculated first, which can be used to derive annual averages and minimum and maximum values. 
• The ratio should be interpreted alongside other indicators to better understand labour market dynamics and potential imbalances. 
• Vacancies estimates may be subject to revision and should be interpreted with caution for smaller regions. Data may be suppressed due to low counts or unreliable data quality. 
• Data for vacancies is available from April 2015 onwards, and June 2015 onwards for the territories as data is constructed as three-month averaging), which restricts the Imbalances ratio calculations to these timeframes. 
• Due to data availability, unemployment data for Canada as a whole includes only provincial data, while vacancies counts include the territories as well.