Help-Wanted Index (HWI) What it is The Help-Wanted Index (HWI), published by The Conference Board, measures how efficiently employers are matching job openings to the available workforce. It tracks changes in employment demand by counting help-wanted advertising volume and serves as a leading indicator of unemployment and labor-market tightness. History and methodology
* Introduced in 1951 as the Help-Wanted Advertising Index.
* Initially totaled lines of help-wanted classified ads from 51 major newspapers, each representing a different U.S. metropolitan area.
* Rebased to equal 100 in 1987.
* Released monthly, with a national number plus regional breakdowns (nine regions) and a percentage figure indicating the proportion of the labor market with rising want-ad volume.
How to interpret it
* A rising HWI indicates a relatively large number of open positions — interpreted as tighter labor supply or a shortage of workers.
* Tighter labor markets can put upward pressure on wages, potentially contributing to wage inflation.
* Changes in the HWI can influence financial markets, as expectations for higher wages and inflation affect bond and equity valuations.
* The index also provides an indirect measure of job-market slack and the efficiency of the job-matching process (how many jobs remain unfilled).
Where to find it The Conference Board publishes the HWI and its regional breakdowns in monthly releases on its website. Key takeaways
* HWI is a long-standing, simple gauge of labor demand based on help-wanted advertising volume.
* It functions as a leading indicator of unemployment and a signal of labor-market tightness.
* Rising HWI readings can foreshadow wage pressures and broader economic impacts.
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