Janet Yellen, the Fed’s vice chair and likely successor to Ben Bernanke, loves the JOLTS report — the BLS’ batch of labour market stats due out this morning.
Historically, the “Job Openings and labour Market Survey” has not been as market moving as, say, the BLS’ employment situation report.
But if Yellen — who has cited JOLTS as a source of economic intel — ascends to the Fed throne, market watchers will keep a keen eye on the report.
So here’s where we’re at ahead of this morning’s report.
Job openings are on the rise. Companies are putting more jobs on the market.
But hires have flatlined. Firms haven’t been able to fill all of those new positions.
Layoffs have plunged. New openings, stagnant hires, but record low firings? What’s going on? It could be “labour hoarding” — firms basically hanging on to the employees that made it through the rough patch. And this is actually a bigger problem than you might think. During the crisis, businesses cut labour costs as much as possible, but at a certain point they couldn’t cut anymore. Firms “hoarded,” maximizing the productivity of the labour that remained. It seems as though we may still be in that cycle, with meaningful hires yet to break through.
Quits are up. Also a good sign, as quitting your job is a sign of market confidence.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.