Building Sectoral Job Search Indices for the United States

Abstract

This study investigates job search activity in the United States by constructing a set of sectoral job search activity indices based on Internet search volumes. The indices are positively associated with countercyclical labour market measures, including unemployment and layoff rates, but are negatively associated with procyclical measures. Overall, our evidence supports previous empirical findings—job search intensity is countercyclical—which contradicts the theoretical model’s prediction.

Keywords: job search activity index, countercyclical measures, business cycle, Google Trends

JEL Classification: E24, E32, J64