Job Openings and Labor Turnover Survey (JOLTS)
Candlefocus EditorThe Job Openings and Labor Turnover Survey (JOLTS) is a survey conducted monthly by the Bureau of Labor Statistics of the U.S. Department of Labor. The survey measures the number of job vacancies, hiring, and separations in the private and public sector businesses in the nation. It is one of many key indicators of labor market conditions.
The JOLTS survey began in December 2000, however, the data was not released to the public until 2002. Since then, the survey has grown in importance in the labor market and is used to gauge the strength of the labor market. It is especially important to workers and businesses seeking to understand current labor supply dynamics.
The JOLTS survey provides information on the job openings rate, hires rate, and separations such as layoffs and discharges, quits, and other separations such as retirements and transfers. The job openings rate is the number of job openings divided by the number of employee who hold jobs. The hires rate is the number of people hired. The hires rate is a measure of how quickly new workers are filling job vacancies.
The separations rates are composed of several components. The quits rate is the number of people who voluntarily leave their job, which is a key gauge of the strength of the labor market. When workers quit their job, it is often a sign of confidence in the job market and labor market conditions.
The quits rate is especially important during times of economic hardship, such as during the Great Recession of 2008-2009. During that time, the quits rate dropped significantly, and the lack of confidence meant that workers were hesitant to leave their secure jobs.
Meanwhile, the layoffs and discharges rate is the percentage of people who have been laid off involuntarily. When economic conditions weaken, this rate tends to rise.
The JOLTS survey is important because it has been used successfully in the past to anticipate changes in the labor market and the overall economy. For example, in March 2022, job openings and voluntary separations from employment both hit all-time highs. This has been attributed to the so-called “Great Resignation,” when workers were confident enough to leave their jobs in search of better opportunities.
In addition, job openings hit another record high in July 2018, exceeding 6 million for the first time. This shows the strength of the labor market, which has remained strong through 2020 despite global economic uncertainty due to the COVID-19 pandemic.
The Job Openings and Labor Turnover Survey is an invaluable resource for employers and workers alike to understand current labor market and economic conditions. Not only does it provide important data on employment and job openings, but it also helps to anticipate upcoming economic trends.