Job Openings and Labor Turnover[JOLTS]: Et Hoc Genus Omne.

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Review Notes 

Market Sensitivity: Low.
What Is It: The report captures the churning that takes place in the labor market. It publishes the the total number of new hires and layoffs in the month, as well as how many job openings remained in that period.
Most Current News Release on the Internet: www.bls.gov/news.release/pdf/jolts.pdf
Home Web Address: www.bls.gov
Release Time: 10:00 a.m. (ET); published about five to six weeks after the reference month.
Frequency: Monthly.
Source: Bureau of Labor Statistics, Department of Labor.
Revisions: With each release, the government makes revisions to the previous month, though they tend to be minor. Benchmark revisions are done once a year, usually in March, and can go back two years.”

Via – Bernard Baumohl. “The Secrets of Economic Indicators

Highlights :

The number of job openings was little changed at 6.0 million on the last business day of October, the U.S. Bureau of Labor Statistics reported today.

Over the month, hires increased to 5.6 million and separations were little changed at 5.2 million.

Within separations, the quits rate and the layoffs and discharges rate were little changed at 2.2 percent and 1.1 percent, respectively

Job openings have been at or near record high levels since June.

The job openings rate was 3.9 percent in October.

Job openings increased in accommodation and food services (+94,000), construction
(+48,000), and real estate and rental and leasing (+40,000).

Job openings decreased in wholesale trade (-90,000), finance and insurance (-47,000), information (-32,000), and nondurable goods manufacturing (-26,000).

The number of hires increased to 5.6 million in October (+232,000), and the hires rate was 3.8 percent.

The number of hires increased to 5.2 million for total private (+247,000) and was little changed for government.

At the industry level, the number of hires increased in other services (+55,000) and health care and social assistance (+45,000).

Hires decreased for state and local government, excluding education (-32,000).

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Table A. Job Openings, Hires, and Total Separations by Industry, Seasonally Adjusted

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October 2017 Job Openings Level = 6,000,000 (p)

September 2017 Job Openings Level = 6,093,000(p)

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October 2017 Job Openings Rate =3.9% (p)

September 2017 Job Openings Rate = 4.0%(p)

 

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October 2017 Hires Rate = 3.8% (p)

September 2017 Hires Rate = 3.6% (p)

 

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Table B. Layoffs and Discharges, Seasonally Adjusted

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October 2017 Layoffs/Discharges Rate = 1.1% (p)

September 2017 Layoffs/Discharges Rate = 1.2% (p)

 

Table 4. Quit Levels and Rates by Industry and Region, Seasonally Adjusted

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September 2017 Quits Rate= 2.2% (p)

October 2017 Quits Rate =2.2% (p)

 

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Market Impact
Bonds: By the time this report comes out, a dozen other job-related surveys for the same reference period have already been released. As a result, bond traders do not react much to the publication of the JOLT series.

Stocks :Investors in the equity market take a different approach. Although JOLT won’t ignite much new trading, there is increasing interest in what this report says about the total number of hires, job openings, and level of quits. This information is not available elsewhere and can thus add to our knowledge of current economic conditions and how it might affect revenues and earnings with specific industries.

Dollar: There is no measurable reaction from currency traders to the JOLT report.

Via Bernard Baumohl. “The Secrets of Economic Indicators”

 

-R.W.N II

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