Outward shifts in the Beveridge curve indicate a bad turn for the labor market. The outward shift around 2019 is expected because a pandemic significantly reduces the labor force participation rate. The outward shift around 2010 is baffling. Improvements in job search (i.e. online job posting sites) should shift the curve inward. The outward shift in 2010 could be due to structural changes in the economy, such as the decline in certain industries or automation. If the displaced workers have a hard time finding new jobs the curve shifts out.
Outward shifts in the Beveridge curve indicate a bad turn for the labor market. The outward shift around 2019 is expected because a pandemic significantly reduces the labor force participation rate. The outward shift around 2010 is baffling. Improvements in job search (i.e. online job posting sites) should shift the curve inward. The outward shift in 2010 could be due to structural changes in the economy, such as the decline in certain industries or automation. If the displaced workers have a hard time finding new jobs the curve shifts out.