What Happens to EAFE Developed (EFA) When Job Openings Collapse?
What happens when JOLTS job openings collapse? Labor market weakness, Fed response, and implications for wage growth and consumer spending.
How EAFE Developed (EFA) Responds
Scenario Background
JOLTS job openings measure the number of available positions across the US economy. The series peaked near 12M in early 2022 during the post-COVID hiring surge and has since normalized. A collapse below 7.5M signals that employers are pulling back hiring materially, which historically precedes rising unemployment by 3 to 6 months.
Read full scenario analysis →Historical Context
Prior to the post-COVID surge, US job openings ranged from 3M to 7M. The pandemic era saw openings exceed 12M before normalizing toward 8M by 2024. Historical collapses include the 2001 tech bust (openings fell from 5.2M to 3.1M over 18 months), the 2008 crisis (5M to 2.1M over 24 months), and the 2020 shock (7M to 4.6M in two months). In each case, unemployment rose within 3 to 6 months of the openings decline.
What to Watch For
- •Openings-to-unemployed ratio falling below 1.2
- •Quits rate falling below 2.0% (workers not confident enough to leave)
- •Hires rate falling below 3.8%
- •Layoffs rate rising above 1.2%
- •Unemployment rate rising 0.3% over three months
Other Assets When Job Openings Collapse
Other Scenarios Affecting EAFE Developed (EFA)
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