Job Openings Fall to 6-Month Low in March; Fewer Than Expected

March's Job Openings and Labor Turnover Survey (JOLTS) revealed a fewer-than-anticipated job openings, with vacancies falling to 7.192 million. This is the lowest number of openings in six months and below the expected 7.490 million. Additionally, hires and quits saw slight increases, while layoffs declined.

From the press release:

The number of job openings was little changed at 7.2 million in March, the U.S. Bureau of Labor Statistics reported today. Over the month, hires held at 5.4 million, and total separations changed little at 5.1 million. Within separations, quits (3.3 million) were unchanged and layoffs and discharges (1.6 million) edged down.

Background on JOLTS (Job Openings and Labor Turnover)

The JOLTS report is a monthly survey released by the BLS that tracks job openings, hiring, and separations (quits, layoffs, and discharges). Unlike the unemployment rate, which measures labor supply, JOLTS data helps gauge labor demand. An increase in job openings is generally a positive sign, indicating ample job opportunities.

The chart below displays the monthly data for the four components of the JOLTS series. Due to their volatility, six-month moving averages are included to highlight trends. The moving average for job openings remained above hires for over five years starting in 2015. It briefly dipped below hires in May and June 2020 but rebounded above in July 2020. From mid-2022 to September 2024, job openings, hires, and quits all declined, with job openings showing the steepest drop. However, since September 2024, hires and job openings have stabilized. Meanwhile, quits have continued their downward trend, while layoffs/discharges have gradually risen since mid-2022.

JOLTS Overview

Jobs Report vs. JOLTS

JOLTS data lags the BLS employment report by one month. As a reminder, 228,000 jobs were added in March and the unemployment rate inched up to 4.2%.

PAYEMS monthly change

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

BLS Nonfarm Jobs versus JOLTS data

JOLTS: Gauging Labor Demand

The job openings-to-workers ratio reflects labor demand by showing the balance between unfilled positions and available workers. A high ratio signals strong demand as employers struggle to hire, while a low ratio indicates weak demand due to a surplus of workers. In March, there were 7.083 million unemployed workers and 7.192 million job openings. This equates to 1.02 jobs available per unemployed worker, significantly below pre-pandemic levels and the lowest level since 2021.

Job Openings Per Unemployed Worker