What to Know About JOLTs, the Fed's Measure of Labor Market Health
What is the JOLTs Report?
The Job Openings and Labor Turnover Survey (JOLTs) is a monthly report released by the Bureau of Labor Statistics (BLS) that provides data on job openings, hires, quits, and layoffs in the United States.
The JOLTs report is a key indicator of the health of the labor market. A high number of job openings and a low number of layoffs indicate a strong labor market, while a low number of job openings and a high number of layoffs indicate a weak labor market.
Why is the JOLTs Report Important?
The JOLTs report is important because it provides insights into the supply and demand for labor in the United States. This information can be used to make informed decisions about economic policy.
For example, if the JOLTs report shows that there are a large number of job openings and a low number of layoffs, this could indicate that the economy is growing and that businesses are hiring. This information could lead to a decision to raise interest rates in order to slow down the economy and prevent inflation.
How is the JOLTs Report Used?
The JOLTs report is used by a variety of stakeholders, including:
- Economists
- Policymakers
- Businesses
- Investors
Economists use the JOLTs report to track the health of the labor market and to make forecasts about the future of the economy.
Policymakers use the JOLTs report to make decisions about economic policy. For example, the Federal Reserve uses the JOLTs report to help make decisions about interest rates.
Businesses use the JOLTs report to make decisions about hiring and layoffs. For example, a business may decide to hire more workers if the JOLTs report shows that there are a large number of job openings.
Investors use the JOLTs report to make decisions about investing. For example, an investor may decide to buy stocks in a company that is hiring a lot of workers.
What to Expect from the JOLTs Report
The next JOLTs report is scheduled to be released on Wednesday, July 26, 2023.
Economists are expecting the report to show that there are a large number of job openings and a low number of layoffs. This would indicate that the labor market is strong and that the economy is growing.
The JOLTs report is a key indicator of the health of the labor market. It is used by a variety of stakeholders to make informed decisions about economic policy, business decisions, and investment decisions.
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