JOLTS Job Openings

What Is the JOLTS Report?

The Job Openings and Labor Turnover Survey (JOLTS) is a monthly BLS report that measures job openings, hires, and separations (including quits, layoffs, and other separations) across the U.S. economy. Published with a two-month lag, it provides a comprehensive picture of labor demand and worker behavior that complements the headline employment data from the monthly jobs report.

JOLTS covers approximately 21,000 nonfarm business and government establishments and provides data at the national level with industry and regional breakdowns.

Why It Matters for Markets

JOLTS gained extraordinary importance during the 2021-2023 period when the labor market was historically tight. The ratio of job openings to unemployed workers became a key metric for the Federal Reserve, with Chair Powell frequently referencing it as evidence of labor market overheating.

The openings-to-unemployed ratio is a powerful measure of labor market tightness. A ratio of 2:1 (two openings per unemployed person) indicates intense competition for workers, supporting wage growth and potentially fueling inflation. A ratio below 1:1 indicates more unemployed workers than available positions, suggesting labor market slack.

The quits rate provides a unique window into worker confidence. People quit when they believe they can find something better. A rising quits rate signals a dynamic, worker-friendly market. A falling quits rate suggests anxiety and a preference for stability. For wage forecasting, the quits rate is among the best predictors available.

JOLTS in Monetary Policy

The Fed's use of JOLTS data represented a shift in how policymakers assess the labor market. Traditional analysis focused on employment levels and the unemployment rate. The post-pandemic analysis added labor demand (openings), worker behavior (quits), and the matching function (the Beveridge Curve, which plots openings against unemployment).

Powell's stated goal of reducing job openings without significantly raising unemployment, a move down the Beveridge Curve rather than along the traditional Phillips Curve, was a novel policy framework. The subsequent decline in openings from 12 million to roughly 7-8 million without a corresponding unemployment spike was cited as evidence that this "immaculate rebalancing" was achievable, though debate continues about whether it represents a permanent structural shift or temporary dynamics.