August 8, 2017 – The JOLTs report is the Job Openings and Labor Turnover Survey that tracks several trends in evaluating the labor market. Through JOLTs we are able to see voluntary and involuntary separations from employment in addition to new job openings and hires that have taken place.
Job openings spiked in June to a rate of 6.356 million, up from May’s upwardly revised rate of 5.702 million (from 5.666 million). Total hires fell in June to a rate of 5.356 million while quits came in at 3.134 million. The hires rate came in at 3.7% and the quits rate at 2.1%. The total private industry showed a decrease of 100,000 hires as well as a decrease in quits of 67,000.
Lower numbers in layoffs & discharges and quits is not the main contributor to the large increase in job openings in June. The economy is expanding and requires companies to open up new positions to keep up with demand and fill orders. Since the JOLTs report has a two month lag time, the increase in job openings represents an increase in demand for labor for the summer months to come. However the decrease in hires could signal companies that opened jobs did not find someone to hire in that month time frame.