JOLTS Report Shows Workers Retain Upper Hand

It’s not exactly a workers’ paradise, but with businesses struggling to hire employees and the “Great Resignation” in full swing, workers still have the upper hand, albeit a little less so than previously, according to the Bureau of Labor Statistics.

The BLS monthly Job Openings and Labor Turnover Survey—popularly known as JOLTS—showed job openings down slightly to 11.3 million as of Jan. 31. Hires and total separations fell to 6.5 million and 6.1 million, respectively. Within separations, the quits rate decreased to 2.8 percent. The layoffs and discharges rate was little changed at 0.9 percent.

BLS also reported on 2021 annual estimates for hires and separations, finding the annual number of hires and quits in 2021 increased to 75.6 million and 47.8 million, respectively. The annual number of layoffs and discharges decreased to 17.0 million in 2021.

BLS revised December’s figures to show a record 11.4 million job openings, easily surpassing the previous high of 11.1 million openings set last July.

Sarah House, Senior Economist with Wells Fargo Economics, Charlotte, N.C., said the number of openings remains 4.1 million higher than its 2019 average of 7.2 million—a 57 percent increase—and remained above 10 million openings for the eighth consecutive month.

“The January JOLTS report shows that the labor market is as tight as ever, but that demand has steadied over the past few months,” House said. “Recent evidence from the National Federation of Independent Businesses shows that hiring in February remained difficult, even as job openings and hiring plans slumped slightly heading into the month. Labor market slack is still near an all-time low, evidenced by the number of unemployed per job opening, while nearly half of small businesses report that it is difficult to fill jobs.”

House also noted more than 1.7 million jobs have been added over the past three months, with labor force participation rising to 62.3%.

However, the report showed December hires was little changed at 6.5 million, while the hires rate was unchanged at 4.3 percent. Meanwhile, total separations held at 6.1 million and 4.0 percent, respectively, with quits down by 151,000 in January to 4.3 million (2,8 percent).

“Large numbers of hires and separations occur every month throughout the business cycle,” BLS said. “Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining. Conversely, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising.”