The Job Openings and Labor Turnover Survey (JOLTS) is a critical economic gauge that tracks job vacancies, hires, and departures in the United States. Produced by the Bureau of Labor Statistics (BLS), this monthly survey illuminates the intricate workings of the labor market. It quantifies aspects like the number of available positions and the rate at which employees leave their jobs, providing invaluable data for analyzing labor demand and workforce shifts. This detailed information enhances the broader picture presented by the monthly jobs report, offering a more nuanced understanding of the interactions between employers and the workforce. JOLTS proved particularly instrumental in deciphering significant labor trends, such as the period known as the Great Resignation.
JOLTS data, accessible in both seasonally adjusted and unadjusted formats, offers granular insights broken down by geographical region, industry sector, and company size. The BLS compiles this extensive dataset by surveying a representative sample of 21,000 nonfarm businesses and government entities. These surveyed organizations provide information regarding their total workforce, job openings, new hires, and various types of separations. A job opening, for the purposes of this survey, includes any vacant position—whether full-time or temporary—that is ready to be filled within 30 days and for which the employer is actively seeking external candidates. The employment figures from JOLTS are regularly benchmarked against the Current Employment Statistics (CES) survey, ensuring consistency and accuracy with the monthly jobs report. Furthermore, JOLTS data undergoes annual revisions to align with CES updates, although it typically takes about a year for new businesses to be incorporated into the survey’s sample. The BLS initiated the collection of JOLTS data in 1999, with public reporting commencing in 2002.
The Great Resignation, characterized by a notable surge in voluntary job separations (excluding retirements) beginning in 2021, emerged as the U.S. economy and job market recovered from the pandemic-induced downturn. Initially, after falling to 1.6% in April 2020, the quits rate rebounded to 2.4% by December of that year, matching its pre-pandemic level. This upward trend continued, peaking at a record 3% in November 2021, and again in December and March 2022. During this period, the number of workers voluntarily leaving their jobs reached an unprecedented 4.5 million in March 2022, alongside a record 11.55 million job openings, representing 7.1% of all available and filled positions. By April 2023, the quits rate stabilized at 2.4%, with 10.1 million job openings. Some economists attribute the entire phenomenon of the Great Resignation to a robust job market, which empowers workers to seek better opportunities or even pursue entrepreneurial ventures with less apprehension about future employment. The slower recovery of the labor force participation rate, which stood at 62.4% in March 2022 compared to 63.4% in February 2020, further contributed to a tight labor supply, intensifying competition among employers and sustaining the high quits rate. Beyond economic factors, other theories suggest the pandemic prompted a reevaluation of personal priorities and heightened awareness of working conditions, leading to widespread career changes. Regardless of the underlying causes, JOLTS data remains a crucial tool for monitoring labor demand and turnover in an ever-evolving job market.
The Job Openings and Labor Turnover Survey (JOLTS) provides essential insights into the dynamics of the American labor market. By meticulously tracking job vacancies, hires, and separations, JOLTS offers a comprehensive view that goes beyond simple employment numbers, enabling a deeper understanding of workforce movements and economic health. This survey is vital for policymakers, economists, and businesses in making informed decisions and responding effectively to the evolving landscape of employment.
