Demand Concentration

Demand Concentration shows the concentration of job postings in a region relative to the national average. This can be used to determine if job posting concentration is high or low in a region compared to the nation.

Demand Concentration is calculated by comparing the share of regional job postings for a search with the share of national job postings for that search. Suppose software developer job postings account for 3.9% of all job postings in Boise, ID, and 2.8% of all national job postings. Boise’s Demand Concentration for software developers would be (0.039 / 0.028) = 1.4, meaning job postings for software developers are 1.4x more concentrated in the region than the rest of the nation on average. A Demand Concentration score greater than one indicates that demand in the region has a high concentration. Scores lower than one indicate demand concentration is lower than the national average.