Job Openings Fall to Three Year Low

The latest job openings and labor turnover summary (JOLTS) report showed that job openings fell to their lowest level in over three years. Vacancies dropped to 8.488 million in March from February's upwardly revised level of 8.813 million. The latest reading was below the expected 8.680 million vacancies.

From the press release:

The number of job openings changed little at 8.5 million on the last business day of March, the U.S. Bureau of Labor Statistics reported today. Over the month, the number of hires changed little at 5.5 million while the number of total separations decreased to 5.2 million. Within separations, quits (3.3 million) and layoffs and discharges (1.5 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.

Background on JOLTS (Job Openings and Labor Turnover)

The JOLTS report is a monthly survey of job openings, hiring, and job separations (quits, layoffs, discharges) released by the BLS. Unlike the unemployment rate that measures the supply side of the labor market, JOLTS data helps gauge labor demand.

The chart below shows the monthly data points of the four components of the JOLTS series. They are quite volatile, hence the inclusion of six-month moving averages to help identify the trends. The moving average for openings was above the hires levels for over five years starting in 2015, as seen in the chart below. The openings MA briefly dipped below the hires for two months (May and June 2020), only to climb above once more in July 2020. Over the last year, job openings, hires, and quits have all been trending down with job openings moving falling the fastest. During that same time, layoffs and discharges have been slowly trending up but have recently started to level off.

JOLTS Overview

For comparison, here is the monthly BLS Employment Situation Summary charted with JOLTS data:

BLS Nonfarm Jobs versus JOLTS data

In March, there were 6.429 million unemployed workers and 8.488 million job openings. This equates to 1.32 jobs available per unemployed worker in March, down from 1.36 in February and the lowest ratio level since August 2021.

Job Openings Per Unemployed Worker