The BLS Job 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 employment growth currently being seen should continue.
Unadjusted Private Jobs Openings from JOLTS – Year-over-Year (blue line) compared to Change from Last Month (red line)
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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)
