Financial Glossary
Job Openings and Labor Turnover Survey (JOLTS)
The Job Openings and Labor Turnover Survey (JOLTS) is a monthly survey conducted by the U.S. Bureau of Labor Statistics (BLS) that measures labor demand and workforce dynamics across the U.S. economy. It reports four primary data series: job openings (unfilled positions at the end of the month); hires (new employees added during the month); quits (voluntary separations); and layoffs and discharges (involuntary separations). The quits rate is closely watched as a measure of worker confidence -- people quit more readily when alternative opportunities are plentiful. JOLTS data is released approximately one month after the reference month and is used alongside the monthly jobs report for a fuller picture of labor market conditions.
Problem & Application
A campground management company tracking JOLTS data notices that the accommodation and food services sector's quits rate has risen for three consecutive months, signaling that hospitality workers are confident they can find better-paying jobs elsewhere. This leads the company to proactively increase starting wages for seasonal site attendants and maintenance staff to reduce voluntary turnover before peak season. At the macro level, a persistently high JOLTS openings number relative to unemployed workers -- the so-called vacancies-to-unemployed ratio -- signals tight labor markets that put upward pressure on wages across the economy, a leading indicator that business owners can monitor to anticipate labor cost increases before they hit the income statement.
In Short
JOLTS is a key labor market indicator, offering insights into workforce supply and demand, which in turn affects wage inflation, consumer spending, and economic growth forecasts.