What Is the JOLTS Report?

The Job Openings and Labor Turnover Survey (JOLTS) is a monthly report produced by the U.S. Bureau of Labor Statistics (BLS) that provides detailed insights into the dynamics of the labor market. Rather than focusing solely on the net number of jobs added or lost—like the more commonly cited Employment Situation report—JOLTS captures how labor markets are functioning beneath the surface. It tracks the flow of workers in and out of jobs, as well as the number of open positions, offering a more complete picture of labor demand and supply.

First introduced in 2000, JOLTS has become a critical economic indicator for policymakers, business leaders, and economists. It offers data on job openings, hires, quits, layoffs, discharges, and other separations across industries and regions. The survey's results are often used to assess labor market strength, evaluate wage pressure risks, and gauge the overall health of the economy.

Components of the JOLTS Report

JOLTS data is collected from a sample of approximately 21,000 nonfarm establishments across all sectors of the economy. The survey includes federal, state, and local government employers but excludes private households, the military, and the self-employed. The main components of the report are:

Job Openings represent positions that are open (not filled) on the last business day of the month. To qualify as a job opening, a position must be actively advertised outside the organization and be ready to be filled immediately.

Hires refer to all additions to the payroll during the month, regardless of whether the employee is newly hired or rehired. This includes both full-time and part-time workers, as long as they are formally added to the employer's payroll.

Separations encompass all terminations of employment, which are further broken down into quits, layoffs and discharges, and other separations. Quits are voluntary and often signal worker confidence in finding new employment. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include retirements, deaths, and disability-related exits.

Importance in Economic Analysis

JOLTS data helps assess the strength and balance of labor market activity. Economists look at the level of job openings to gauge demand for workers. A high number of job openings relative to the number of unemployed individuals may indicate a tight labor market and upward pressure on wages. Conversely, declining openings can suggest softening demand for labor.

The quit rate, in particular, receives close attention because it reflects workers’ confidence in their job prospects. A rising quit rate typically suggests that workers are optimistic about finding better opportunities. It is often considered a leading indicator of wage growth, as higher turnover may force employers to increase compensation to retain talent.

The data on hires and separations also provides insight into business sentiment and operational capacity. A high level of hiring may suggest that businesses are expanding, while a spike in layoffs could point to economic distress or sector-specific challenges. Monitoring the relationship between hires and separations offers clues about whether employment is likely to grow or contract in the near term.

Relationship to Other Indicators

JOLTS complements other labor market indicators such as the unemployment rate and nonfarm payrolls by providing context to monthly employment changes. While nonfarm payrolls show net employment changes, JOLTS reveals the volume of job churn—how many people are hired and how many leave their jobs in a given month.

It also ties into broader economic indicators such as wage inflation and consumer confidence. For instance, a sustained increase in job openings with a declining fill rate may suggest a mismatch between worker skills and employer needs, potentially spurring policy discussions on workforce development and education.

The Beveridge Curve—a graphical representation that plots the job openings rate against the unemployment rate—is often used with JOLTS data to analyze the efficiency of the labor market. Shifts in the curve can indicate structural changes or frictions in hiring.

Use by Policymakers and Institutions

The Federal Reserve and other policymakers use JOLTS data to monitor employment trends and make informed decisions about monetary policy. The Federal Open Market Committee (FOMC) may reference JOLTS figures to evaluate labor market slack and inflationary risks tied to wages.

Businesses and industry groups also use the data to benchmark their own hiring and retention practices. Human resource professionals, for example, may use quit rate data to assess turnover trends in their industry.

Academic researchers study JOLTS data to better understand labor mobility, job matching, and employment resilience across economic cycles. Its disaggregated data allows for analysis across regions, sectors, and firm sizes, making it a valuable resource for labor economics research.

Limitations and Considerations

While JOLTS is a comprehensive and detailed source of labor market data, it is not without limitations. The data is subject to revisions, which can alter the interpretation of past trends. The report also reflects conditions from the previous month, introducing a lag compared to real-time conditions. Additionally, because it is based on a sample of establishments, it is subject to sampling error and may not capture every nuance of fast-changing labor markets.

Another limitation is that the report does not provide wage data, so while it offers insights into labor demand and worker behavior, it must be supplemented with other reports—such as the Employment Cost Index or the Average Hourly Earnings data—to get a full view of labor cost dynamics.

The Bottom Line

The Job Openings and Labor Turnover Survey (JOLTS) offers valuable insight into the internal movements within the U.S. labor market. It sheds light not just on how many jobs are added, but how dynamic the employment landscape is in terms of hiring, quitting, and layoffs. As a supplement to other labor market reports, JOLTS provides context for understanding economic momentum, labor shortages, and wage pressures. It plays an important role in shaping economic forecasts, policy decisions, and strategic business planning.