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What is the JOLTS Report?
In the world of finance and economics, the JOLTS report is a crucial indicator that provides insights into the labor market. While the employment report is widely covered, the JOLTS report, which stands for the Job Openings and Labor Turnover Survey, is equally important, especially in the context of a pandemic.
This article will delve into what the JOLTS report is and how it differs from the employment report.
What is the JOLTS Report?
The JOLTS report is a survey conducted by the Bureau of Labor Statistics (BLS) that provides a comprehensive view of the labor market’s churn. It measures the number of job openings, hirings, and separations, giving a more nuanced understanding of the labor market than the employment report.
The employment report, which measures the number of people at work and the unemployment rate, is a crucial indicator of the labor market’s health. However, it does not provide information on the number of job openings, hirings, and separations. This is where the JOLTS report comes in.
Separations
Separations are a critical aspect of the JOLTS report. The BLS breaks separations into three categories: quits, layoffs, and other separations.
- Quits: These are voluntary separations where employees leave their jobs, often for better opportunities, higher pay, or better benefits.
- Layoffs: These are involuntary separations where employees are let go due to the company’s decision, such as during a layoff or firing.
- Other separations: This category includes all other reasons for separations, such as retirement or death.
Interpreting Quits
During the pandemic, the number of quits has been at record highs, indicating that workers have more options and are more confident in the labor market. Higher quits rates are often associated with tighter labor markets, where there are many job openings.
The JOLTS report also provides granular detail on industry-by-industry turnover. For example, the manufacturing and retail trade industries are seeing higher quits rates than they were a year ago. However, the leisure and hospitality industry has seen the most significant increase in quits rates, with a 20-year high in June 2021.
Conclusion
The JOLTS report is a crucial indicator of the labor market’s health, providing insights into job openings, hirings, and separations. While the employment report is essential, the JOLTS report provides a more nuanced understanding of the labor market, especially in the context of a pandemic.
With the labor market giving workers more choices due to the high number of job openings, how can companies attract and retain top talent in a highly competitive job market?
