The Job Openings and Labor Turnover Survey (JOLTS), produced monthly by the U.S. Bureau of Labor Statistics (BLS), offers a comprehensive look at the health of the labor market. This report provides valuable insights into job vacancies, hiring trends, and employee turnover. Specifically, it details the number of job openings, the volume of new hires, and the rates of separations, which include voluntary quits, layoffs, discharges, and other forms of employee departure such as retirements.
By analyzing these metrics, the JOLTS report helps policymakers, economists, and business leaders gauge labor market demand and supply, assess the stability of employment, and identify trends in workforce mobility. For instance, a high number of job openings could indicate strong demand for labor, while a high quit rate might suggest that workers feel confident enough in the job market to leave their current positions for new opportunities. Overall, the JOLTS report is a crucial tool for understanding the dynamics of the employment landscape.
Job Openings and Labor Turnover – December
The U.S. Bureau of Labor Statistics reported that the number of job openings dropped to 7.6 million by the end of December 2024. During the month, hires stayed the same at 5.5 million, and total separations remained stable at 5.3 million. Separations include quits (3.2 million) and layoffs and discharges (1.8 million). This report provides estimates for job openings, hires, and separations for different industries and sizes of businesses.
Job Openings
Job openings fell by 556,000 in December, reaching 7.6 million. Over the year, job openings decreased by 1.3 million. The job openings rate dropped to 4.5%.
There were significant decreases in job openings in professional and business services (-225,000), health care and social assistance (-180,000), and finance and insurance (-136,000). However, job openings increased in arts, entertainment, and recreation (+65,000).
Hires
In December, the number of hires remained steady at 5.5 million but decreased by 325,000 over the year. The hires rate stayed at 3.4%. There was an increase in hires in the finance and insurance sector (+48,000).
Separations
Total separations include quits, layoffs and discharges, and other separations. Quits are voluntary separations initiated by employees, while layoffs and discharges are involuntary separations initiated by employers. Other separations include retirements, deaths, disabilities, and transfers to other locations within the same firm.
In December, total separations remained at 5.3 million, with a separation rate of 3.3%. The number of quits stayed at 3.2 million, though it dropped by 242,000 over the year. The quits rate remained at 2%. Quits decreased in transportation, warehousing, and utilities (-42,000).
Layoffs and discharges remained at 1.8 million, with the rate staying at 1.1%. Layoffs and discharges increased in transportation, warehousing, and utilities (+87,000), and in mining and logging (+6,000). Other separations stayed about the same at 302,000.
Impacts of JOLTs Report on the Stock Market
In December 2024, the JOLTS report revealed a decrease in job openings, which was worse than expected. While hires and total separations remained relatively stable, the drop in job openings may raise concerns about the labor market’s health.
