Labour market tightness is a phrase often used by commentators and policy-makers, but it is rarely defined. In this paper, the phrase labour market tightness is interpreted as describing the balance between the demand for, and the supply of, labour. A logical consequence of this approach is that...

This paper investigates the evolution of skill imbalances in the UK labour market over the past two decades. Movements in the relative ease with which firms can recruit skilled workers can affect unemployment, inflation, and productivity. Any assessment of changes in the skill balance is...

In this paper a matching model with variable search intensity that incorporates the inactive is developed and calibrated. The model is used to look at possible explanations for the recent sharp decline in the UK working-age unemployment rate, which has been accompanied by only a moderate...