Why is the JOLTS job opening report important?

Why is the JOLTS job opening report important?


Welcome to the Investors Trading Academy event
of the week. Each week our staff of analysts and educators tries to provide you a better
understanding of a major market event scheduled during the soon and that has an effect on
the global markets. With the US economy improving the focus has been on the labor market to
lead the Federal Reserve to make its upcoming decision on interest rate increases. Jobs
and unemployment data has taken on addition significance. The JOLTs job openings as catapulted
to the front of the jobs market and become a much followed indicator. JOLTs stands for
Job Opening and Labor Turnover. The United States Bureau of Labor Statistics’
survey is published monthly. It examines the job market and collects information from employers
in different industries. The data collected concerns hires, job openings, layoffs, separations,
recruitments, etc. Respondents to the survey answer quantitative and qualitative questions
about their businesses’ employment, job openings, recruitment, hires and separations. The JOLTS
data is published monthly and by region and industry.
The Job Openings and Labor Turnover Report from the BL is a good forward indicator of
the labor market. The BLS compiles data from a random sample of private non-farm businesses.
Job openings are one piece of the report. The other piece addresses hires versus separations.
JOLTS data has many uses, not least of which is to help guide the government in formulation
of economic policy through economic research and planning. The JOLTS publications provide
data that can help in the analysis of industry retention rates, business cycles and industry-specific
economic research. Also, JOLTS has been used in conjunction with the Help-Wanted Index,
which is published by the Conference Board, for a more accurate reading of job-market
efficiency in the country. The JOLTS analytically portrays the U.S. job
market beyond unemployment rates and jobless claims. For this reason, it serves as a valuable
resource for policy makers and indicates the direction of economic growth for analysts
and academics.

Leave a Reply