The US Bureau of Labor Statistics is pleased to announce that the number of job vacancies remained steady at 8.2 million on the last business day of June. During this month, the number of appointments and total dismissals changed only slightly, reaching 5.3 million and 5.1 million, respectively. In terms of dismissals, the number of resignations (3.3 million) and dismissals and dismissals (1.5 million) did not change significantly.
This report contains estimates of the number and percentage of vacancies, appointments and dismissals in the non-agricultural sector, disaggregated by industry and enterprise size category. The number of job vacancies remained unchanged at 8.2 million on a business day in June. The number decreased by 941,000 throughout the year, and the job vacancy rate remained at 4.9% in June. Job opportunities rose in certain sectors such as accommodation and food services, local and state government, in contrast to a decline in durable goods manufacturing and the federal government.
As for appointments, the number of appointments was little changed in June at 5.3 million but fell by 554,000 during the year.
Dismissal saw a slight decline in June to 5.1 million, with a decrease of 544,000 year-over-year. Resignments didn’t change much in June, but they dropped by 434,000 over the course of the year. Layoffs and dismissals changed slightly in June at 1.5 million.
Establishment size category Establishments between 1 and 9 employees experienced minor changes in vacancy rates, recruitment and dismissal. For establishments with 5,000 employees or more, the rate of layoffs and dismissals decreased, while vacancy and dismissal rates remained unchanged.
The number of vacancies for May was revised upwards by 90,000 to 8.2 million, the number of appointments was revised downwards by 101,000 to 5.7 million, and the total number of dismissals was revised downwards by 25,000 to 5.4 million. Under dismissals, the number of resignations was revised down by 56,000 jobs to 3.4 million.
The Importance of the Job Vacancies and Labor Turnover Report (JOLTS)
The Job Vacancy and Labor Turnover Survey (JOLTS) is a report from the U.S. Bureau of Labor Statistics (BLS) that provides detailed information about job vacancies, hiring, resignation, layoffs, and other dismissals in the U.S. labor market. Here is an overview of the JOLTS vacancies report in USD:
Job Vacancies:
- Definition: Vacancies refer to all (unfilled) vacancies on the last working day of the month.
- Important: Job vacancy data is a key indicator of labor market demand. A large number of vacancies may indicate a strong labor market, while a low number may indicate a weaker labor market.
Appointments:
- Definition: Appointments represent the number of employees hired during the month.
- Important: Appointment data provides insights into the pace of job creation and the ability of companies to fill vacancies.
Resignations:
Definition: Resigns refer to the number of employees who voluntarily quit their jobs during the month.
- Important: The number of resignations can be an indicator of workers’ confidence in the labor market. Rising resignations may indicate that workers are more confident in finding better opportunities elsewhere.
Market Impact:
- Economic Index: JOLTS data is closely monitored by policymakers, economists and investors as it provides detailed information about labor market dynamics.
- Market reaction: Positive JOLTS data, such as a high number of job vacancies or increased employment, may be perceived as positive for the economy and could affect financial markets, including currencies, stocks, and bonds.
- Comparison with other labor market indicators: JOLTS data complements other labor market indicators such as the Monthly Employment Status Report (which includes nonfarm payrolls, unemployment rate, and average hourly earnings) and the weekly Initial Jobless Claims report in providing a comprehensive picture of the US labor market.
Overall, the JOLTS, especially data on job openings, plays a crucial role in assessing the health of the U.S. labor market and is a valuable tool for understanding trends in job availability and labor market dynamics.
How JOLTS Data Affects Fed Decisions
Employment Opportunities and Turnover Survey (JOLTS) data plays an important role in shaping the policy decisions made by the Fed by providing insights into labor market dynamics. Here’s how JOLTS data affects Fed policy:
Labor Market Conditions: JOLTS, especially information on job opportunities and resignations, provides a detailed view of labor market conditions beyond what traditional indicators such as the unemployment rate provide. The Fed monitors these points closely to assess the overall health of the labor market.
Inflation Prospects: The Fed aims to keep prices stable, and labor market conditions play a crucial role in shaping inflation prospects. Strong JOLTS data indicating tight labor market conditions can influence the Fed’s assessment of inflation risks.
Interest rate decisions: The Fed uses a variety of economic indicators, including labor market data such as JOLTS, to make decisions on monetary policy, especially regarding interest rates. Positive JOLTS data pointing to a strong labor market may prompt the Fed to consider raising interest rates to prevent the economy from warming up.
Economic growth: Healthy job opportunities and labor turnover rates in the labor market generally indicate the growth of the economy. The Fed considers the JOLTS data as part of its assessment of the outlook for overall economic growth and adjusts its stance on monetary policy accordingly.
Future guidance: The Fed often communicates its decisions and policy intentions to the public based on economic data, including labor market indicators such as JOLTS. Changes in JOLTS data could affect the Fed’s future guidance on future policy actions.
In short, JOLTS data is an important factor that the Fed takes into account when making monetary policy decisions. The insights provided by JOLTS help the Fed measure labor market strength and assess inflationary pressures.
