Talent Benchmark

Talent Supply

Talent Supply helps you evaluate how available qualified talent is in a specific region. It is presented in two ways: Talent Supply Index and Talent Supply Rating. Each measure uses a different data source and methodology.

1. Talent Supply Index

The Talent Supply Index measures how talent is in a region compared to the national average. It uses a location quotient style calculation to determine whether talent supply is above or below typical levels.

(Supply share in region ÷ total profiles in region) / (Supply share nationally ÷ total profiles nationally)

Interpretation:

1.0 - Average supply
Greater than 1.0 - Higher than average supply
Less than 1.0 - Lower that average supply

Source	Use Cases
Professional profiles Normalized Lightcast proprietary occupation Skill mapping	Workforce Planning Location Strategy Internal mobility readiness

2. Talent Supply Rating

Talent Supply Rating provides a modeled estimate of available talent, calculated from government employment data, estimated unemployment, and turnover.

Components Include:

SOC-based employment figures
Locally adjusted unemployment estimates
Estimated available workers (unemployed + likely to turnover)
Skill adjacency modeling for related occupations

Examples: High Supply, Medium Supply, Somewhat Low Supply, Low Supply

Source: Government occupational statistics (e.g., BLS OES), U.S. Census labor force data, Lightcast turnover models.

3. Key Difference

Talent Supply Index reflects digital labor market activity based on professional profiles.
Talent Supply Rating reflects a broader estimate of the available labor pool using government and modeled employment data.

Hiring Demand

Hiring Demand helps you understand how competitive the job market is for a specific occupation in a given region. It is presented in two ways: Hiring Demand Index and Hiring Demand Rating. Each measure answers a different question about market activity.

1. Hiring Demand Index

The Hiring Demand Index measures how job postings are in a region compared to the national average.

(Job postings for occupation in region ÷ total postings in region) / (Job postings for occupation nationally ÷ total postings nationally)

Interpretation:

1.0 - Average demand
Greater than 1.0 - Higher than average demand
Less than 1.0 - Lower than average demand

Source	Use Cases
Job postings from career sites Job boards Aggregators Deduplicated & Normalized Lightcast’s proprietary taxonomy	Competitive intelligence Demand forecasting Recruiting strategy

2. Hiring Demand Rating

The Hiring Demand Rating evaluates market momentum. It compares the most recent 90-day job posting volume to the same period in the previous year to identify demand trends.

Examples: Somewhat High Demand, Medium Demand, and Low Demand

Source: Lightcast job postings database, calculated using year-over-year growth rates for unique postings in a 90-day rolling window.

3. Key Difference

Hiring Demand Index measures current market concentration relative to the national average.
Hiring Demand Rating measures the direction and strength of demand change over time.

Compensation Trends

Compensation Trends help you evaluate how wages compare across regions and how pay levels are changing over time. It includes two measures: Wage Level Index and Wage Trend Rating.

1. Wage Level Index

The Wage Level Index compares the median advertised wage in a specific region to the national median for given occupation.

Median wage in region ÷ Median wage nationally

Interpretation:

1.0 - Equal to national median
Greater than 1.0 - Higher than average wages
Less than 1.0 - Lower than average wages

Sources	Use Cases
Advertised salary data extracted from job postings. Aggregated wages to calculate median values by occupation & location.	Pay equity audits Compensation planning Salary calibration

2. Wage Trend Rating

The wage trend rating evaluates market momentum. It compares the most recent advertised wages to the same period in the previous year to identify wage trends.

Thresholds:

Greater than 15% - Very High Inflation
Greater than 7.5% - High Inflation
Greater than 2.5% - Mild Inflation
Between -2.5% and 2.5% - No significant change
Less than -2.5% - Wage deflation

Source: Rolling average of advertised wages in job postings, tracked and compared year-over-year for inflation or deflation trends.

3. Key Difference

Wage Level Index shows how current wages compare to the national benchmark.
Wage Trend Rating shows whether wages are increasing, stable, or decreasing over time.

Diversity Benchmark

National Diversity Benchmark (%)

Represents the percentage of talent for a given occupation who are not White males, based on national-level occupational data.

Source	Use Cases
U.S. Census Bureau American Community Survey (ACS) Quarterly Workforce Indicators (QWI) Lightcast’s proprietary occupation	Diversity strategy Inclusive hiring DEI benchmarking

Why Both Indexes and Ratings Matter

Question	Lightcast Benchmark Index (Quantitative)	Lightcast Qualitative Rating (Modeled)
What is the current competitiveness of this market for talent?	Current view based on postings and profiles	Modeled labor pool size and turnover trends
How are salaries changing over time?	Wage levels relative to national benchmarks	Year-over-year inflation/deflation trends
Is there enough talent in this market to hire for this job?	Observed online presence of talent	Estimated available workers in labor force

Together, these perspectives deliver both instant visibility and structural insights, allowing HR leaders to make smart, timely decisions that align with broader workforce dynamics.

Final Note on Methodological Differences

In cases where index and rating values seem contradictory (e.g., "High Supply" but also "Hard to Fill"), users should consider the underlying methodology

Index Scores rely on real-time market signals from digital sources.
Qualitative Ratings incorporate modeled government data, macroeconomic trends, and inferred behavior.

Both are credible when used together, they offer richer insights and greater confidence in decision-making.