Prior revised to 6.887 millionJob openings 7.618 million (+731K), highest since May 2024Vacancy rate 4.6% vs 4.2% priorHires 5.116 million vs 5.60 million priorPrior hires revised to 5.535 millionSeparations 5.270 million vs 5.377 million priorQuits 3.053 million vs 2.773 million priorLayoffs and discharges 1.620 million vs 1.507 million prior
This is a big jump and the highest reading since May 2024. There is some variance in this data set so I wouldn’t take it as an indication of a reversal in trend just yet, though it’s obviously positive.
At face value, this report takes away one big argument from the dovish camp, at least in the short term. The jump was driven by professional and business services which saw +668K job openings, mostly in health services. That’s a good sign that AI isn’t replacing jobs, though health care is relatively shielded anyway.
For background, the Job Openings and Labor Turnover Survey (JOLTS), published monthly by the U.S. Bureau of Labor Statistics (BLS), is a crucial economic indicator that provides a comprehensive view of the labor market’s health. While standard employment reports focus on net job creation and unemployment rates, JOLTS digs deeper into the underlying dynamics of workforce turnover. It measures total job openings, hires, and separations, including quits, layoffs, and discharges. Policymakers, particularly at the Federal Reserve, closely monitor JOLTS data to gauge labor market tightness and inflationary wage pressures. A high number of openings relative to available workers typically signals strong corporate demand, whereas high “quit rates” suggest workers feel confident in their ability to secure new employment.
Recent data underscores this ongoing labor market narrative. According to the March report released in May, job openings came in at 6.866 million, slightly edging out market estimates of 6.835 million. This modest beat highlights a continued, resilient demand for labor. By outpacing expectations, the March JOLTS data suggests that employers are still actively looking to fill roles, providing critical insight into the current balance of labor supply and demand driving broader macroeconomic trends today. This stability remains a key focus for economists everywhere.
This article was written by Adam Button at investinglive.com.