What It Measures
JOLTS (Job Openings and Labor Turnover Survey) measures the number of unfilled job positions across the U.S. economy. It also tracks hires, separations (quits, layoffs, discharges), and other labor market flows.
- A job opening is defined as a position that:
- Is available and could be filled within 30 days
- The employer is actively recruiting to fill
Why It Matters
Labor Demand Indicator: Job openings directly measure employer demand for workers.Fed's Favorite: The Federal Reserve closely monitors JOLTS data, particularly the ratio of job openings to unemployed workers.Wage Pressure Signal: More openings than available workers typically leads to wage inflation.Quit Rate: High quit rates suggest worker confidence in finding better opportunities.
How to Interpret
Openings-to-Unemployed Ratio: Above 1.0 means more jobs than job seekers, indicating a tight labor market. Below 0.5 suggests significant slack.Quit Rate: Rising quits signal worker confidence; falling quits suggest workers are holding onto jobs due to uncertainty.Industry Breakdown: Shows which sectors are expanding or contracting hiring.
Key Levels to Watch
| Level | Interpretation |
|---|---|
| Above 10 million openings | Extremely tight labor market |
| 8-10 million openings | Tight labor market |
| 6-8 million openings | Balanced labor market |
| Below 6 million openings | Weak labor demand |