Key Takeaways
- Monthly survey tracking job openings and labor turnover.
- Measures hires, quits, layoffs, and total separations.
- Indicates labor market tightness and worker leverage.
- Data covers private nonfarm sectors and government entities.
What is Job Openings and Labor Turnover Survey (JOLTS)?
The Job Openings and Labor Turnover Survey (JOLTS) is a monthly report by the U.S. Bureau of Labor Statistics that measures job vacancies, hires, and separations across various sectors. It provides valuable insights into labor market dynamics, including demand for workers and employee turnover rates.
JOLTS data helps you understand workforce trends beyond traditional indicators like unemployment, offering a detailed view of labor market tightness and churn, which is crucial for informed decisions in data analytics and economic forecasting.
Key Characteristics
JOLTS offers several key metrics that collectively describe labor market conditions.
- Job Openings: Number of positions available on the last business day of the month where employers are actively recruiting externally.
- Hires: Total number of workers added to payrolls during the month, reflecting hiring activity.
- Separations: Includes quits, layoffs, discharges, and other separations, measuring workforce churn.
- Quits Rate: Voluntary employee departures indicating worker confidence and labor market strength.
- Sector Coverage: Data spans private nonfarm sectors plus government entities, excluding farms and households.
How It Works
JOLTS collects data from over 20,000 establishments via phone, web, or interviews, compiling monthly figures on openings, hires, and separations. The survey’s timing and sample size ensure timely, granular insights into labor demand and turnover by industry, size, and geography.
By comparing job openings with hires and separations, you can gauge labor market tightness and employee mobility. For example, a high openings rate combined with a rising quits rate signals increased worker leverage, which may influence wage growth and employment strategies under regulations like the Fair Labor Standards Act (FLSA).
Examples and Use Cases
JOLTS data informs diverse stakeholders about labor market conditions and trends.
- Airlines: Companies like Delta monitor labor turnover to adjust staffing and optimize operations amid fluctuating travel demand.
- Investors: Tracking JOLTS alongside earnings reports helps assess sectors for large-cap stock investments sensitive to labor costs and productivity.
- Policy Makers: Use JOLTS to understand impacts of demographic shifts, such as those related to the baby boomer generation retiring, influencing workforce supply.
- Recruiters: Analyze high quits or openings rates to identify industries with talent shortages, refining recruitment strategies.
Important Considerations
When using JOLTS data, consider its monthly reporting lag and that it measures net flows, which may differ from other employment statistics like Current Employment Statistics. Variations in definitions and timing can affect comparisons.
JOLTS is a powerful tool for assessing labor market health but should be combined with other metrics such as earnings data and broader economic indicators to get a comprehensive view of workforce trends and economic conditions.
Final Words
JOLTS data provides a clear snapshot of labor market dynamics by tracking job openings, hires, and separations. Monitor upcoming releases to gauge shifts in labor demand and turnover that could impact your hiring strategy or job search timing.
Frequently Asked Questions
JOLTS is a monthly survey conducted by the U.S. Bureau of Labor Statistics that measures job vacancies, hires, and separations across private nonfarm establishments and government entities to assess labor demand and turnover.
JOLTS provides data on job openings, hires, quits, layoffs and discharges, and total separations, capturing the labor market's dynamics through these four main metrics.
JOLTS uses the job openings rate—which is the number of job openings divided by the sum of job openings and employment—to indicate how many positions remain unfilled, signaling the level of competition employers face to hire workers.
Quits represent voluntary employee separations and a high quits rate often indicates worker confidence in finding better job opportunities, reflecting trends like the 'Great Resignation.'
JOLTS data is collected monthly from over 20,000 establishments and published in both seasonally adjusted and unadjusted forms, typically reporting job openings as of the last business day of the month and hires and separations for the full month.
JOLTS counts all job openings that are actively being recruited externally, including full-time, part-time, permanent, short-term, and seasonal positions where work is available and can start within 30 days.
While JOLTS and the Current Employment Statistics (CES) survey both measure employment dynamics, they differ in methodology, reference periods, and definitions, with JOLTS focusing on job openings and separations to provide a broader view of labor turnover.
Yes, JOLTS data is detailed by region, industry, establishment size, and state, allowing for localized insights such as state-level job openings and separations.
