October 2014 JOLTS Again Continues To Predict Elevated Jobs Growth

The BLS Openings and Labor Turnover Survey (JOLTS) can be used as a predictor of future jobs growth, and the predictive elements show that the year-over-year private non-farm job opening growth rate improved slightly. The current rate is quite high – so the high growth currently being seen should continue.

  • the number of unadjusted PRIVATE jobs openings – which is the most predictive of the JOLTS elements – the year-over-year growth rate declined from originally released 20.5% (September) to 23.2% (October). The year-over-year growth of the unadjusted non-farm private jobs opening rate (percent of job openings compared to size of workforce) improved slightly from 16.7% to 18.8%. Overall, the data is predicting slightly improving employment growth.
  • Unadjusted Private Jobs Openings from JOLTS – Year-over-Year (blue line) compared to Change from Last Month (red line)

  • The graph below (click on graph to enlarge) looks at rate of growth for job openings. The rate of growth is quite high, but flat (not trending up or down).
  • Click on picture to enlarge

  • The market expected seasonally adjusted jobs openings at 4.750 million to 4.800 million (consensus 4.790 M) versus the headline 4.834 million.
  • The relevance of JOLTS to future employment is obvious from the graphic below which shows JOLTS Job Openings leading or coincident to private non-farm employment. JOLTS job openings are a good predictor of jobs growth turning points.

    Seasonally Adjusted Private Jobs Openings from JOLTS (blue line, left axis) compared to BLS Non-farm Private (red line, right axis)

    The graph below uses year-over year growth comparisons of non-seasonally adjusted non-farm private BLS data versus JOLTS Job Openings – and then compare trend lines. JOLTS is showing a long term trend improvement – even with the decline this month.

    Year-over-Year Change – Seasonally Jobs Openings from JOLTS (blue line, left axis) compared to Unadjusted BLS Non-farm Private (red line, right axis)

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