Savvy Investors Look to Job Postings to Predict a Company’s Performance
Some investors are taking advantage of a once-obscure indicator of a company’s financial prospects: job postings. According to research published in the July issue of the journal Management Science, changes in the number of a company’s online job postings are a leading indicator of changes in that company’s future performance. The relationship is stronger when the job postings likely represent the addition of new employees rather than the replacement of people leaving the company, the researchers found.