Jobs Openings and Labor Turnover Report

What is it: Captures the churning that takes place in the labor market. Jobs created, new hires, layoffs.

Link to most recent release: Latest Release

Release time: 10:00. Published about five to six weeks after the reference month

Frequency: Monthly

Source: Bureau of Labor Statistics, Department of Labor

Revisions: Tend to be major. Often go back two months with each release

Why is it important

Employment report tells us nothing about how many people were hired(just month-on-month change) over the course of last month. Nor does it tell us the numbers of jobs eliminated. This is the gap the JOLT report fills in the gap of the actual gross number of positions filled and eliminated. There is no better way to judge the health of the economy than its ability to create new jobs.

How is it computed

TheBureau of Labor Statistics breaks down the JOLT report into job openings, hires and separations(quits, layoffs and discharges). It randomly contacts 16 000 non-farm business establishments(from the poo of 9.1 million) each month - offices, factories, retailers, federal/state/local government agencies in all 50 states.

Job openings - jobs(positions companies are actively recruiting for) available on the last day of each month. Full-time, part-time, temporary and permanent are included

Hires - total number of filled position from entire month

Separations - eliminated jobs. Quits are voluntary, separations and layoffs are involuntary. Other Separations - retirement, death or left due to disability.

Highlights

Job openings ultimately represents the employers optimism/pessimism about the future of the economy since labor is the costliest investments companies make. Job openings turns markedly lower well in advance of when an economy slips into recession.

Hires also peaks months before a recession

Separations tells a mixed story since people can get laid off from their employer due to fears of near term drop in demand of goods and services but also people may quit as they feel optimistic about finding a better job.