ECONOTE · Economy Brief · As of May 6, 2026
How to Read Job Openings, Hires, Quits, and Layoffs
The labor market is not only about the unemployment rate. Job openings, hires, quits, and layoffs show how confident employers and workers are beneath the headline numbers.
Editor's note: This article explains labor-market indicators using the March 2026 Job Openings and Labor Turnover Survey from the U.S. Bureau of Labor Statistics. It is for general economic education only and is not investment, legal, tax, or career advice.
The simple version
A healthy labor market is not just one with a low unemployment rate. It is also one where employers are posting jobs, workers are being hired, employees feel able to quit for better opportunities, and layoffs remain contained.
The Job Openings and Labor Turnover Survey, often called JOLTS, helps readers see these flows. It answers a different question from the monthly payroll report. Payroll data asks how many jobs were added or lost. JOLTS asks how many positions were open, how many people were hired, and how many people left jobs.
1. Why labor-market details matter
The unemployment rate is useful, but it is not enough by itself. A country can have a low unemployment rate while hiring is slow. It can also have stable payroll growth while workers feel less confident about changing jobs. That is why labor-market details matter.
Job openings show demand for workers. Hires show whether employers are actually filling roles. Quits show whether workers feel confident enough to leave voluntarily. Layoffs show whether companies are cutting staff. Each number tells a different part of the story.
For households, this matters because job security affects spending decisions. People are more likely to sign leases, buy cars, move homes, or take new training when they believe work is available. For small businesses, labor-market conditions affect wage budgets, hiring plans, customer demand, and staffing risk.
For policymakers, the labor market is also a signal of economic balance. Strong hiring can support household income and spending. Weak hiring can point to caution. Rising layoffs can warn that demand is cooling. A high quits rate can show worker confidence, but it can also create pressure on employers who must replace staff.
2. The March 2026 JOLTS dashboard
The latest JOLTS release, published by the U.S. Bureau of Labor Statistics on May 5, 2026, showed a labor market that was stable in some places and more active in others. Job openings were unchanged at 6.9 million in March. Hires increased to 5.6 million. Total separations changed little at 5.4 million. Within separations, quits were little changed at 3.2 million, and layoffs and discharges were little changed at 1.9 million.
The main point is not that every signal moved in the same direction. They did not. Openings were steady, hiring rose, quits were little changed, and layoffs stayed broadly contained. That mix suggests a labor market with continuing demand for workers, but not one where every employer is expanding aggressively at the same time.
| Indicator | March 2026 reading | What it helps explain |
|---|---|---|
| Job openings | 6.9 million; rate 4.1% | Employer demand for labor |
| Hires | 5.6 million; rate 3.5% | Whether posted demand becomes actual jobs |
| Quits | 3.2 million; rate 2.0% | Worker confidence and job switching |
| Layoffs and discharges | 1.9 million; rate 1.2% | Employer stress and involuntary job loss |
3. How to read job openings
Job openings count positions that employers say are available on the last business day of the month. This is a measure of labor demand, but it should be read carefully. An opening is not the same as a hire. It shows that an employer wants a worker, not that the employer has already found one.
In March 2026, job openings were unchanged at 6.9 million. The job openings rate was 4.1 percent, little changed over the month. Within the details, sector-level changes were mixed, with some industries posting fewer openings while others increased. That kind of split is important because the labor market can be steady overall while changing underneath.
Readers should avoid treating job openings as a perfect measure of job availability for every worker. Some openings require specific skills. Some are in locations where workers may not live. Some postings may stay open for a long time. Others can be filled quickly. The number is still useful, but it needs context.
A high openings number usually suggests that employers still need workers. A falling openings number may suggest weaker demand or greater caution. But the best reading comes from comparing openings with hires. If openings are high but hires are flat, employers may be selective, workers may not match the roles, or wage expectations may be difficult to align.
4. How to read hires and quits
Hires are more concrete than openings. They count people who were added to payrolls during the month. When hires rise, it suggests that employers are not only posting roles but also bringing workers in.
In March 2026, hires increased to 5.6 million. The hires rate rose to 3.5 percent. The BLS noted increases in transportation, warehousing, and utilities, as well as gains in accommodation and food services. Federal government hires decreased.
Hires can be a better signal of momentum than openings alone. If firms are uncertain, they may keep postings open but delay final decisions. If they are confident enough to staff up, the hires number can move higher. A rise in hires does not guarantee that every worker has an easier search, but it is a sign that more labor-market transactions are taking place.
Quits tell a different story. A quit is usually a voluntary separation initiated by the employee. When quits rise, it often means workers feel they can find better pay, better hours, a better location, or a more attractive role. When quits fall, it may mean workers are less confident about leaving.
In March, quits were little changed at 3.2 million, and the quits rate was 2.0 percent. Quits were lower than a year earlier. That matters because worker confidence is not only about having a job today. It is also about feeling safe enough to search for a better one.
5. How to read layoffs without overreacting
Layoffs and discharges are involuntary separations initiated by employers. This is the part of the JOLTS report that readers often associate with recession risk, but one month of data should not be read in isolation.
In March 2026, layoffs and discharges were little changed at 1.9 million, and the rate was 1.2 percent. Compared with a year earlier, layoffs and discharges have been gradually rising. That combination deserves attention, but it does not mean the entire labor market is suddenly weak. It means the layoff side of the labor flow should be watched alongside openings, hiring, claims, payrolls, and unemployment.
Layoffs can rise for many reasons. A company may cut staff because demand has weakened. A business may restructure after rapid expansion. A sector may face technology changes. A government agency may reduce employment for policy or budget reasons. A local market may soften even when the national economy is still growing.
The practical reading is simple: stable layoffs support household confidence, while rising layoffs can change behavior quickly. People who fear job loss may reduce discretionary spending, delay large purchases, or build cash reserves. Businesses may postpone hiring, freeze budgets, or renegotiate staffing plans.
6. What this means for households and small businesses
For households, JOLTS is not just a Wall Street data release. It gives clues about job security and bargaining power. A strong labor market can support income growth and job mobility. A softer one can make workers more cautious about switching jobs or taking financial risks.
For recent graduates, career changers, and workers in industries exposed to automation, the difference between openings and hires can be especially important. A job posting does not always mean an easy match. Skills, location, experience, wage expectations, and industry demand all matter.
For small businesses, the report helps explain staffing pressure. If openings are high and quits are high, a business may need to spend more time and money on hiring and retention. If layoffs rise and hiring slows, customer demand may also become more uncertain. If hiring strengthens while openings stay steady, some firms may finally be filling roles that had been difficult to staff.
JOLTS is also useful for reading costs. Labor is one of the largest expenses for many service businesses. A tight labor market can raise wage pressure and turnover costs. A weaker labor market can reduce staffing pressure, but it may also signal softer demand. Neither direction is automatically good or bad. The context matters.
A simple reading checklist
When the next JOLTS report comes out, read it in this order:
- Start with openings. Are employers still looking for workers?
- Compare openings with hires. Are posted jobs turning into actual employment?
- Check quits. Do workers feel confident enough to move?
- Watch layoffs. Are companies cutting staff more aggressively?
- Look by industry. Is the change broad or concentrated in a few sectors?
- Connect it to other data. Compare JOLTS with payrolls, unemployment, wages, jobless claims, and consumer spending.
Key terms
JOLTS
The Job Openings and Labor Turnover Survey. It tracks openings, hires, quits, layoffs, and other separations.
Job openings
Positions that employers report as open on the last business day of the month.
Hires
People added to payrolls during the month.
Quits
Voluntary separations initiated by workers. The quits rate is often used as a signal of worker confidence.
Layoffs and discharges
Involuntary separations initiated by employers.
FAQ
Is JOLTS the same as the monthly jobs report?
No. The monthly jobs report focuses heavily on payroll employment and unemployment. JOLTS focuses on labor-market flows, including openings, hires, quits, and layoffs.
Why do economists watch quits?
Quits can show worker confidence. Workers are usually more willing to leave voluntarily when they believe other opportunities are available.
Can job openings be misleading?
They can be misunderstood if read alone. A job opening is not the same as a hire. It should be compared with hires, quits, layoffs, and industry-level details.
Final note
The March 2026 JOLTS report does not tell readers everything about the economy. It does, however, show why the labor market should be read as a set of flows. Openings show demand, hires show action, quits show confidence, and layoffs show stress. Together, they give a clearer view than any single headline number.
Sources
- U.S. Bureau of Labor Statistics, Job Openings and Labor Turnover Summary, March 2026: BLS JOLTS release
- U.S. Bureau of Labor Statistics, JOLTS program page and latest numbers: BLS JOLTS home
- U.S. Bureau of Labor Statistics, Employment Situation release, March 2026: BLS Employment Situation