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JOLTS Job Openings: what is it?
By Gabriele Brambilla
The JOLTS Job Openings is a monthly report on the labor market in the United States. Here's what you should know.
An indicator to follow
Among the U.S. indicators that we should follow closely is the JOLTS Job Openings.
In this short article we will understand what it is, on the basis of what figures it is calculated, and where we can follow its progress.
We anticipate that it is an easy-to-read report that returns a clear number representing job openings. But no more anticipation-let’s get into the details now!
JOLTS Job Openings
The JOLTS is one of the outstanding reports on the U.S. labor market, prepared by the Bureau of Labor Statistics. An acronym for Job Openings and Labor Turnover Survey, the JOLTS compiles its results based on several employment metrics such as job openings, resignations, layoffs and, of course, employment in general. But as the name suggests, the figure we read is about open positions, usually expressed in millions.
The release of the report is on a monthly basis, usually a month after the payrolls reports referring to the same period. This is one of the key appointments regarding the situation of the labor market in the United States, capable of affecting the performance of the markets in the very short term.
Where does the data come from? The JOLTS is a report based on surveys filled out by employers, with information covering the points mentioned in the opening paragraph.
By “Job Openings,” the report means all job positions open as of the last working day of the month. To be marked as open, the job position must meet three basic points.
- The position itself exists and there is a job available for it;
- The job could start within 30 days, whether or not the employer finds a suitable candidate(s) during that period;
- An active campaign is underway to recruit workers from outside the location of the business that opened the position.
More to know: the end of an employment relationship is itself divided into three different categories: voluntary resignation, layoffs and the like, other (such as retirement or death).
You can follow the progress of the JOLTS on different platforms such as TradingView and Investing.
Why is JOLTS important?
We are used to placing extreme importance on data such as unemployment and, to a lesser extent, indicators such as Initial Jobless Claims. However, we should not stop there.
Indeed, the JOLTS Job Openings report is capable of showing a different side of the U.S. labor market. First, it is based on questionnaires filled out by employers, thus coming from behind the scenes and offering a different perspective. Then, it shows a different data that, combined with the other indicators, improves the overall view we have on employment.
It can be most useful to know how the labor supply is moving, as well as to interpret it and understand why it has gone up, down or unchanged. A more complete view puts us in a position to better interpret the scenario, minimizing errors.
