What Is the Job Openings and Labor Turnover Survey (JOLTS)?
Let me explain what the Job Openings and Labor Turnover Survey, or JOLTS, really is. It's a monthly report from the Bureau of Labor Statistics (BLS) under the U.S. Department of Labor, and it counts job vacancies along with separations, including how many workers are voluntarily quitting their jobs.
The BLS surveys more than 20,000 businesses and government offices to come up with estimates for U.S. job vacancies, hires, and separations that feed into the monthly jobs report. Those separation numbers break down into total separations, quits, layoffs and discharges, and other separations like deaths or retirements.
You should know that the number of vacancies serves as a key indicator of labor demand, while the quits rate ties into employment demand. Hires and separations help measure overall labor turnover. JOLTS adds detail to the BLS monthly jobs report, which covers U.S. payrolls and the unemployment rate, and it's released about a month later for the same period.
Key Takeaways from JOLTS
JOLTS is essentially a monthly survey of U.S. job vacancies, hiring, and separations put out by the BLS. The vacancies data shows labor demand, and the quits numbers, including voluntary separations and their rate, measure labor force turnover.
A job vacancy in JOLTS means a position that's available, can start within 30 days, and the employer is actively seeking outside candidates. This covers part-time and temporary openings too. Back in March 2022, JOLTS hit all-time highs for job openings and voluntary separations during what's called 'The Great Resignation' with an elevated quits rate.
Understanding JOLTS in Detail
JOLTS data comes out monthly in both seasonally adjusted and unadjusted forms, broken down by region, industry, and workforce size. To generate this, the BLS surveys a sample of 21,000 nonfarm business and government employers, asking about total employment, job openings, hires, and separations.
Job openings include all vacancies at the end of the month that meet specific criteria: the position exists with work available, it could start within 30 days, and the employer is recruiting externally. JOLTS employment estimates get benchmarked monthly to the Current Employment Statistics (CES) survey for the jobs report, using a ratio to adjust other data, and they're revised annually with CES. It takes about a year for new businesses to enter the survey sample database. The BLS started collecting JOLTS data in 1999 and began publishing in 2002.
JOLTS and the Great Resignation
The Great Resignation refers to the spike in quits rate for voluntary separations starting in 2021 as the U.S. economy recovered from the COVID-19 downturn. After dropping to 1.6% in April 2020, the quits rate climbed back to 2.4% by December, then hit a record 3% in November 2021, staying there into March 2022.
In raw numbers, quits reached 4.5 million in March 2022, up 152,000 from February, with job openings at a record 11.55 million, or 7.1% of total jobs. As of April 2023, quits were at 3.8 million and 2.4%, similar to pre-pandemic levels, while openings rose to 10.1 million at 6.1%.
Some economists say the Great Resignation was just a strong job market post-COVID, letting workers quit for better opportunities or start businesses. Nonfarm employment was at 99% of February 2020 levels by March 2022, but labor force participation lagged at 62.4%, below 63.4%, tightening labor supply and boosting quits. Other reasons include worsened working conditions or priority shifts during the pandemic. As long as the market stays tight, you'll want to watch JOLTS for labor demand and turnover signals.
Related Information
You might also hear about the U.S. Employment Situation Report, released by the BLS on the first Friday each month. It uses household and employer surveys to estimate payroll numbers, hours worked, earnings, and the unemployment rate.
The BLS gathers employment data through field economists who survey via house visits, phone, or video calls. As for when the Great Resignation ended, by March 2023, it was slowing with fewer quits and a more competitive job market.
The Bottom Line
In summary, JOLTS is a monthly BLS report collecting employer data to measure job openings, hires, quits, layoffs, and other turnover. It gives a detailed view of the labor market and insights into the U.S. economy overall.
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