JOLTS Report Shows Low-Churn Labor Market
JOLTS Report Shows Low-Churn Labor Market
The January JOLTS Report contained few fireworks and painted a picture of a stable and steady labor market with considerably less churn than before the pandemic. With just 3.6% of workers being hired each month (down from 3.9% before the pandemic), 2.1% of workers quitting jobs each month (down from 2.3%), and 1.0% of workers being laid off (down from 1.2%), the market is more attractive now for Americans who already have jobs, but less attractive for those who are unemployed.
The lower rates of hires and quits call into question the accuracy of the job openings count, which is still 27% higher than before the pandemic. Surely, if there truly were that many more job opportunities, workers would be switching jobs at higher rates and companies would be hiring workers at higher rates than before.
While topline JOLTS indicators were relatively flat, there were some interesting movements at the industry level. Here are some highlights:
Retail job openings and quits fell substantially. The decline suggests that the labor market in retail is cooling. With consumer spending holding strong, the decline could be due to structural changes in the economy, such as the shift to e-commerce and the shift to self checkout.
Information sector job postings surged. The increase could signal the beginnings of a turnaround in tech, where job growth has been sluggish and layoffs have been widespread.
Small businesses continue to generate rising shares of job openings. Since the pandemic, business starts have risen, likely due to the decline in startup costs brought about by the shift to remote work. Today’s JOLTS data suggests that the trend is continuing.
Take a closer look at the JOLTS Report data through our dashboard of data visualizations.
