Vacancy rate is the percentage of an organization’s budgeted positions, tracked back to each approved job requisition, that are currently unfilled, a snapshot indicator of hiring capacity, attrition pressure or workforce planning gaps.

Formula and what a high rate signals

Vacancy Rate = (Unfilled Positions ÷ Total Budgeted Positions) × 100

A company with 50 budgeted roles and 5 currently open works out to (5 ÷ 50) × 100 = 10%. As a rough rule of thumb, under 5% is often read as a well-staffed organization, while persistently above 10% commonly signals recruiting-capacity strain reflected in a rising cost per hire, non-competitive pay, or elevated attrition feeding the gap faster than hiring can close it. These thresholds are general guidance rather than an audited standard, so treat them as a starting point, not a fixed rule. A vacancy rate that stays high for a sustained period is also linked to productivity loss from understaffing and added strain on the remaining team.

Frequently asked questions

Is vacancy rate the same as attrition rate?

No, vacancy rate is a point-in-time snapshot of currently open roles. Attrition rate measures the rate employees are leaving over a period, and high attrition is often a cause of high vacancy, not the same measurement.

Is vacancy rate the same as time to fill?

No, vacancy rate is a stock measure of how many roles are currently open. Time to fill measures how long individual roles stay open before being filled.

What typically drives a persistently high vacancy rate?

Slow recruiting capacity relative to hiring demand, below-market pay, or attrition consistently outpacing the rate at which roles get filled.

Calculate it with the Vacancy Rate Calculator, and see the related time to hire metric.