What is JOLTS report in fundamental analysis?

JOLTS (Job Openings & Labor Turnover Summary) is an American data survey that tells us the number of job vacancies and job resignation/separation for a given month in the United States nonfarm sector.

Simply put, it tells us how many nonfarm job vacancies were available, what percentage of applicants were hired to fill the vacancies (hiring rate), and the resignations/separations that led to these vacancies.

If the number of job vacancies for a month increases with respect to that of the last month, it is a good sign, but the hiring rate should also increase. Look at it this way, if the hiring rate drops, it could mean people are not willing to take the jobs or the companies are just advertising the jobs but not willing to employ people.

If the JOLTS report is good (meaning more job vacancies and increased hiring rate etc.) we can expect the nonfarm payroll report to be good also. So, the JOLTS report is an indicator of what to expect when nonfarm payroll is released.

JOLTS stands for: Job Openings and Labor Turnover Survey

It is a monthly report released by the U.S. Bureau of Labor Statistics (BLS).

The report measures how strong or weak the U.S. labor market is by showing:

✔️ Job openings

How many jobs employers are trying to fill.

✔️ Hires

How many people were hired that month.

✔️ Quits

How many workers voluntarily left their jobs.

(A high quits rate usually means workers feel confident they can find another job.)

✔️ Layoffs

How many workers were fired or let go.

Why JOLTS Matters to Traders

Traders and investors watch JOLTS because it gives clues about the economy, especially employment strength.

🔷 1. Signals Labor Market Strength

High job openings → strong economy, companies want workers.

Low job openings → weak economy, companies slowing down hiring.

🔷 2. Influences Central Bank Policy

The Federal Reserve watches JOLTS closely.

Strong JOLTS (many openings) → Fed may stay hawkish (higher interest rates).

Weak JOLTS → Fed may become dovish (lower rates).

🔷 3. Affects Currency Markets (Forex)

Strong JOLTS → USD often strengthens.

Weak JOLTS → USD often weakens.

🔷 4. Helps Predict Big Reports like NFP

JOLTS comes before the monthly Nonfarm Payrolls (NFP), so traders use it to guess what NFP might look like.