28  Monthly Labor Review • September 2012

JOLTS Annual Story

Guy L. Podgornik J

ob Openings and Labor Turnover Survey (JOLTS) data showed slight improvement in 2011, continuing a trend 

of modest gains since the recession ended 

in June 2009.1 The seasonally adjusted 

number of job openings—a measure of 

labor demand—increased from 2.2 million in July 2009 and 2.9 million in December 2010 to 3.5 million in December 

2011. While the level shows improvement, 

it is still well below the 4.3 million recorded in December 2007 at the onset of the 

recession. The hires level—a measure of 

worker flows—increased from 3.7 million 

at the end of the recession to 4.2 million 

in December 2011. The separations level, 

another worker-flow measure, decreased 

from 4.2 million in June 2009 to 4.0 million in December 2011; the series high was 

4.7 million in February 2009. The number 

of quits—one of the components of total 

separations—edged up slightly in 2011, 

while the number of layoffs and discharges—another component of total separations—remained near historic lows for the 

second year in a row. 

The JOLTS program measures job openings, hires, and separations on a monthly 

basis by industry2 and geographic region. 

JOLTS measures labor demand by collecting data monthly from a sample of approxiJob openings and hires continue

to show modest changes in 2011

JOLTS data indicate that labor market increases continued to be modest 

in 2011 after a year of similarly slow growth in 2010; total separations 

remained at or near historic lows in 2011

Guy L. Podgornik is an 

economist in the Division

of Administrative Statistics and Labor Turnover 

in the Office of Employment and Unemployment

Statistics at the Bureau

of Labor Statistics. Email:

podgornik.guy@bls.gov.

mately 16,400 nonfarm business and government establishments. Published JOLTS 

data are available from December 2000 forward. Unless otherwise noted, JOLTS data 

used in this report are seasonally adjusted. 

This article analyzes trends in JOLTS data 

through December 2011.

Job openings

Job openings reflected a contraction in 

labor demand during the most recent recession. The number of total nonfarm job 

openings peaked at 4.7 million in March 

of 2007, several months before the beginning of the recession, while nonfarm payroll employment peaked at 138 million in 

January 2008. Job openings declined to a 

series trough of 2.2 million in July 2009, 

one month after the end of the recession. 

Total nonfarm employment reached a series 

trough of 129 million in February of 2010. 

Since the end of the recession, the number 

of job openings climbed steadily to 3.5 million in December 2011. Total nonfarm employment also increased throughout 2011; 

however, at the end of 2011 both series remained below their prerecession levels. (See 

chart 1.)

Between the last two recessions, job openings and nonfarm payroll employment had 
Monthly Labor Review • September 2012  

similar growth trends, with changes in job openings 

leading employment by a few months. As the 2007–2009 

recession approached, job openings began to level off and 

then started to fall. Nonfarm employment had a similar 

trend but with a lag of a few months as companies reacted 

to the economic slowdown by cancelling hiring plans before cutting existing jobs.

Because of the cyclical sensitivity of the job openings 

series, the decline of job openings during the recent recession was much steeper than the drop in nonfarm employment. Similarly, the increase in job openings in the 

months just after the end of the recession was steeper than 

the increase in nonfarm employment. In 2010 and 2011, 

job openings and nonfarm employment trended fairly 

closely.

Job openings by industry. The monthly job openings level 

for all published industries trended downward during 

the recession, with all but two industries falling to series 

lows during 2009. (Job openings for both healthcare and 

social assistance and state and local government trended 

downward during the recession and reached series lows in 

2010.) Since reaching series lows, all published industries 

have seen increases in job openings levels in 2010 and 

2011. Two industries—construction and manufacturing—have had much shallower growth in job openings 

than other industries.

Job openings by region. JOLTS data are published by geographical breakout for the Midwest, Northeast, South, 

and West regions. All four regions reported job openings trends similar to that of the nation leading up to 

and during the recession. In all four regions, job openings peaked in late 2006 through 2007 before the beginning of the recession and job openings fell to their lowest 

point just after the end of the recession. From their respective high point to their low point, job openings declined by 1,126,000 in the South (57.8 percent), 701,000 

in the West (59.3 percent), 439,000 in the Midwest (50.4 

percent), and 418,000 in the Northeast (49.0 percent). 

Chart 1. JOLTS total nonfarm job openings and CES total nonfarm employment, both seasonally adjusted, 

 December 2000–December 2011

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

140,000

136,000

132,000

128,000

124,000

120,000

Dec Dec Dec 

2000 2001 2002 2003 

NOTE: Shaded areas denote recessions as determined by the National Bureau of Economic Researc

SOURCE: U.S. Bureau of Labor Statistic

Job openings

(in thousands)

Employment

(in thousands)

Employment

Job openings
JOLTS Annual Story

30 Monthly Labor Review • September 2012

 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

12.0

10.0

8.0

6.0

4.0

2.0

 0

12.0

10.0

8.0

6.0

4.0

2.0

 0

Chart 2. JOLTS job openings rate and CPS unemployment rate, both seasonally adjusted, December 2000–

 December 2011

8.2

1.1

3.9

NOTE: Shaded areas denote recessions as determined by the National Bureau of Economic Research.

SOURCE: U.S. Bureau of Labor Statistics.

Percent Percent

Job openings rate

Unemployment rate

From their respective series lows until December 2011, 

job openings have grown by 621,000 in the South (75.5 

percent), 331,000 in the Midwest (76.6 percent), 259,000 

in the West (53.8 percent), and 151,000 in the Northeast 

(34.0 percent).  

Job openings and unemployment. Th e JOLTS total nonfarm job openings rate3

 and the national unemployment 

rate from the Current Population Survey move inversely. 

During an economic expansion, the unemployment rate 

drops while the job openings rate climbs. Conversely, 

during an economic contraction, the unemployment rate 

increases while the job openings rate decreases. Chart 

2 illustrates the inverse relationship between these two 

series; the rates generally move towards each other during expansions and away from each other during contractions. Th e diff erence between the two series was 1.1 percentage points in March 2007, just prior to the beginning 

of the recession. After that point, the unemployment rate 

began to climb and the job openings rate began to fall. 

Th e diff erence between the two series grew during the 

recession, reaching a high of 8.2 percentage points in October 2009. From October 2009 until December 2011, 

the unemployment rate declined gradually while the job 

openings rate increased gradually. In December 2011, the 

diff erence between the two series had narrowed to 5.9 

percentage points.

As shown in chart 3, the ratio of unemployed persons 

per job opening reached its most recent low in March 

2007 at 1.4 persons per job opening and began to climb 

through the onset of the recession. Th e ratio began to 

increase more steeply beginning in April 2008 until it 

reached a series high of 6.7 unemployed persons per job 

opening in July 2009. Since that time the ratio has fallen 

steadily, declining to 3.7 in December 2011.

Th e Beveridge curve is the economic model used to 

examine the inverse relationship between labor demand 

(as measured by job openings) and labor supply (as measured by the number of unemployed people) over time.4 

Th e curve plots the job openings rate with respect to 
Monthly Labor Review • September 2012 31

7.0

6.0

5.0

4.0

3.0

2.0

1.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ratio Ratio

Chart 3. Unemployed persons per job opening, seasonally adjusted, December 2000–December 2011

NOTE: Shaded areas denote recessions as determined by the National Bureau of Economic Research.

SOURCE: U.S. Bureau of Labor Statistics.

the unemployment rate, producing a downward sloping 

curve. (See chart 4.) High job openings coupled with 

low unemployment result in a position high and to the 

left on the curve. Th is generally occurs during economic 

expansions. Low job openings coupled with high unemployment result in a position low and to the right on the 

curve. Th is generally occurs during economic contractions. Points can shift along the curve, or, if points move 

off the curve altogether, the curve itself is said to move. 

Shifts along the curve are attributed to cyclical changes 

in the economy. Movements of the curve itself are attributed to structural changes in the economy. 

From the start of the recession in December 2007 

through the middle of 2009, the intersection of the job 

openings rate and the unemployment rate moved lower 

and further to the right as the job openings rate declined and the unemployment rate rose. In the remaining 

months of 2009 and into 2010, job openings increased 

while unemployment remained high. Th is produced a 

vertical movement in the Beveridge curve. From mid2010 to the end of 2011, the curve has moved erratically 

Defi nitions of JOLTS terms

Job openings. Monthly job openings are defi ned as the number of openings on the last business day of the reference month. 

Hires. Monthly hires are all additions of personnel to the payroll during 

the reference month, and annual hires are all additions to the payroll during a given year. Th e annual hires rate is calculated by dividing the total 

number of hires for the year by the average monthly employment for the 

year, and then multiplying the result by 100.

Total separations. Monthly total separations are defi ned as the number 

of employees separated from the payroll during the reference month, and 

annual total separations is the number separated during a given year. Separations are classifi ed as quits, layoff s and discharges, and other separations. Th e annual total separations rate is calculated by dividing the number of total separations for the year by the average monthly employment 

for the year, and then multiplying the result by 100. 

Quits. Th ese are cases in which people left a job voluntarily but did not 

retire or transfer.

Layoff s and discharges. Th ese are involuntary separations initiated by employers. 

Other separations. Th ese are defi ned as retirements, transfers, deaths, and 

separations caused by disability.

towards the left. 

Th e movement of the curve in the last couple of years 
JOLTS Annual Story

32  Monthly Labor Review • September 2012

has raised the question of whether the changes in the 

postrecession labor market are cyclical or structural in 

nature. Economists at the Federal Reserve have been 

studying this matter and have concluded that while there 

may be a small structural component, the majority of the 

shift in the Beveridge curve is due to cyclical changes in 

the labor market.5

Hires

Hires tend to rise during economic expansions and fall 

during contractions. Hires reached a high point of 5.5 

million in November of 2006. At the beginning of the 

recession in December 2007, hires began to drop rapidly 

and reached a series trough of 3.7 million hires in June 

2009, the end of the recession. Since the recession, hires 

have increased to 4.2 million in December 2011. While 

hires have been increasing, the level of hires at the end of 

2011 was still below the prerecession series trough of 4.4 

million reached in March 2003. (See chart 5.)

Hires by industry. Hires within industries show trends 

similar to that of total nonfarm hires during the recession. 

Since the end of the recession, hires have increased within all industries published on a seasonally adjusted basis, 

although some industries have had stronger growth than 

others. Hires within construction, manufacturing, retail 

trade, and government were relatively flat in 2011. Arts, entertainment, and recreation and accommodation and food 

services exhibited the strongest growth in hires in 2011.

Hires by region. Hires within regions also show trends 

similar to that of total nonfarm hires during the recession. Since the end of the recession, all four regions have 

shown increases in hires, with the Midwest and South 

showing the strongest growth in hires in 2011. In spite of 

Chart 4. The Beveridge curve (job openings versus unemployment rate), seasonally adjusted, December 2000–

 December 2011

4.0

3.5

3.0

2.5

2.0

1.5

4.0

3.5

3.0

2.5

2.0

1.5

3.5 4.0 4.5 5.0 

Dec 20

Mar 20

Dec 20

Nov 20

Dec 20

Dec 20

Jun 2009

Dec 2000–Feb 2001 Mar 2001–Nov 2001 Dec 2001–Nov 2007 

 (recession) (recession)

Unemployment rate

SOURCE: U.S. Bureau of Labor Statistic

Job openings

 rate

Job openings

 rate
Monthly Labor Review • September 2012  

increases in hires since the recession ended, hires remain 

below prerecession lows in all four regions.

Separations

The “total separations” series is composed of quits, layoffs and discharges, and other separations. Each of these 

series has its own unique trends and cyclical movements. 

Total separations reached a series peak of 5.5 million in 

May 2006 and declined fairly steadily until April 2009. 

In May 2009 the series began a steeper decline, reaching 

a series trough of 3.8 million in October 2010. In 2011, 

the number of separations slowly increased to 4.0 in December. (See chart 5.)

Quits. Quits are generally voluntary separations initiated 

by the employee. Therefore, quits can serve as a measure 

of workers’ willingness or ability to leave jobs. During economic expansions quits tend to increase, while during economic contractions quits tend to decrease. The number of 

quits increased much of the time between the last two recessions, reaching a series peak of 3.1 million in November 

of 2006. Quits began to decrease slowly from November 

2006 to April 2008 when the number of quits began to rapidly decrease. Quits declined until reaching a series trough 

of 1.6 million in September 2009. Since then, quits have 

increased to 2.0 million in December 2011. (See chart 5.)

Layoffs and discharges. Layoffs and discharges are involuntary separations initiated by the employer. These kinds 

of separations tend to increase during economic contractions. The level of layoffs and discharges was fairly flat 

for most of the time between the last two recessions, 

with a series trough of 1.6 million reported in August 

2006. Layoffs and discharges began to slowly increase 

leading up to and into the first few months of the recession. Involuntary separations accelerated rapidly a few 

months into the recession, reaching a series peak of 2.6 

million in January 2009. Since reaching that peak, the 

number of layoffs and discharges has decreased. Invol6,000

5,500

5,000

4,500

4,000

3,500

140,000

137,000

134,000

131,000

128,000

125,000

Dec Dec Dec 

2000 2001 2002 2003 

Employment

(in thousands)

Hires and separations

(in thousands)

Employment

Hires

Separations

Chart 5. Total nonfarm hires, separations, and employment, seasonally adjusted, December 2000–December 2011

NOTE: Shaded areas denote recessions as determined by the National Bureau of Economic Research. Separations inclu

layoffs and discharges.

SOURCE: U.S. Bureau of Labor Statistic
JOLTS Annual Story

34  Monthly Labor Review • September 2012

untary separations reached a series trough of 1.6 million 

in April 2011, and closed out the year at 1.7 million in 

December 2011.

For most of the 11-year history of the JOLTS program, 

the number of quits has exceeded the number of layoffs 

and discharges. However, with quits decreasing and layoffs and discharges increasing because of the recession, 

the number of layoffs and discharges exceeded the number of quits from November 2008 to March 2010. Since 

that time, quits have increased steadily and layoffs and 

discharges have remained flat, causing a return of the two 

series’ historical pattern. (See chart 6.)

JOLTS DATA SHOW THAT THE RECOVERY in the labor 

market has been slow since the end of the 2007–2009 

recession. Both job openings and hires have slowly 

increased since the recession ended in June 2009, but 

remain beneath the levels recorded just prior to the 

recession. Total separations were low throughout 2011 

compared with historical levels. Quits have increased 

somewhat since the end of the recession, while layoffs and 

discharges have stayed fairly steady.

Chart 6. Total nonfarm layoffs and discharges and quits, seasonally adjusted, December 2000–December 2011

Dec Dec Dec 

2000 2001 2002 2003 2

3,500

3,000

2,500

2,000

1,500

1,000

500

0

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Thousands Thousands

Quits

Layoffs and discharges

NOTE: Shaded areas denote recessions as determined by the National Bureau of Economic Researc

SOURCE: U.S. Bureau of Labor Statistic

Notes

1 See September 20, 2010 report of the Business Cycle Dating 

Committee of the National Bureau of Economic Research, in which 

June 2009 was announced as a business cycle trough and the end of 

the recession that had begun in December 2007, http://www.nber.

org/cycles/sept2010.html.

2 The term “industry” can refer to a supersector, sector, or subsector, 

depending on the context. In analyzing “industries,” the JOLTS program follows the North American Classification System.

3 The job openings rate is the number of job openings on the last 

business day of the month divided by the sum of the number of 

employees who worked during or received pay for the pay period that 

includes the 12th of the month and the number of job openings on 

the last business day of the month. 

4 See speech by Federal Reserve Governor Daniel K. Tarullo at 

the World Leaders Forum, Columbia University, New York, on 

October 20, 2011, http://www.federalreserve.gov/newsevents/

speech/tarullo20111020a.htm.

5 Ibid.