What Does the Data Mean? Visualizing Unemployment

by Neal Levene on Saturday, October 17, 2009 · 3 comments

in Visualization

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Indeed.com, a search engine for jobs, has some interesting unemployment visualizations. The one at right is quite effective.

An important aspect as a consumer of data is to ask yourself what does the data mean. When I first saw this graphic, my first impression was that this showed me the difficulty of finding employment in certain geographic areas. Is this the case?

What data is presented?

The data in the table represents the ratio of job posts to unemployed people. The graph clearly states that unemployment data comes from the Bureau of Labor Statistics. I wish the graph equally well defined where the job post numbers come from. I believe job posts are the number of search results from Indeed.com filtered by the city name.

When first looking at the graph, my thought process was that I was looking at # of available jobs versus unemployment rate. How well do the search results at Indeed act as a surrogate for the number of open jobs? How long does a job posting stay in the search results beyond the time that the position is open? How much of the real job market does Indeed capture? This is not known based on information I could find on the site. The lesson here, I think, is that it is important to stop and examine what exact data is being shown on a visualization.

The next thing I thought about was whether it is better to show the ratios of job posts versus unemployed people or present a dot plot showing the number of job posts versus the unemployment number. It might be difficult to construct a dot plot with that many data points and still make it readable. The answer depends on one’s objective.

An important thing to realize is that a job market where there are 10,000 jobs and 10,000 unemployed in a particular city is quite different from a situation where there are 1 million jobs and 1 million unemployed in a city. Although the ratio in both is 1 to 1, the difficulty of finding a job in the two situations may be quite different. The unemployment rate would have an impact.

These are not necessarily criticisms of the data presented, just an indication that the consumer needs to be careful what conclusions can be drawn.

One thing I like is that this graphic does provide some context through showing how much of a change this months results were versus the previous months. This provides you some directionality of change data that could be interesting.

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Category and Tags

This post filed in the following categories:

  • Visualization - Visualization is any technique for creating images, diagrams, or animations to communicate a message.

About the Author

This post was written by Neal Levene, CEO of InnovaTech, Inc., who blogs about data and business issues here at Simple Complexity and about a variety of other topics at NealLevene.com. Find Neal on LinkedIn or follow him on Twitter. Neal is available to speak to your organization on a variety of topics. You may also use Simple Complexity's Contact Form.

Comments

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Saturday, October 17, 2009 at 12:00 pm

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1 Greg Goehring Monday, November 2, 2009 at 2:03 pm

Interesting visualization and useful comments by Neal. There are additional dimensions the chart does not provide such as the realistic match between job candidates and job skills wanted. The demise of the auto, financial and construction industries may skew the match away from some type of normal statistical balance. However, I did find the representation interesting as a rough order of magnitude (ROM) when comparing the employment situation by geographical location. The visualization is fairly consistent, in a general way ,with the realities I am observing while working with individuals trying to find employment as part of my non-work, voluntary activities. Interesting read and thanks Neal for the visual.

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2 Neal Levene Wednesday, November 4, 2009 at 10:37 am

Thanks for the comment!

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