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07.15.24
In this edition of NC Economy Watch, we dig into some fresh economic data releases to highlight three labor market trends: a declining rate of labor turnover; an elevated high rate of working from home; and a record-high rate of job satisfaction (although with signs of trouble emerging).
Three Things You Should Know About Today’s Labor Market
Labor market information is our bread-and-butter here at the Labor & Economic Analysis Division of the NC Department of Commerce (“LEAD”). We’re always keeping an eye out for the latest data releases to help us better understand what’s happening in the economy and what it all means for the people of North Carolina. Here are a few trends we’re watching right now:
The Labor Market Is Stuck in Neutral
Earlier this month, we received the latest numbers from the US Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). While JOLTS is primarily known for its data on job openings, it also provides timely information on hiring and separations, including how many jobs are being created by employers and how many jobs are being eliminated through layoffs or discharges.
Data from JOLTS depict a labor market that has been stuck in neutral for the past year, with relatively few layoffs but also relatively few hires [Figure 1]. Hiring and layoff activity usually move in opposite directions; for instance, hiring fell and layoffs spiked during the COVID-19 recession in 2020, while the subsequent recovery saw a high rate of hiring and very few layoffs. More recently, the hires rate has declined, but there’s been relatively little increase in layoff activity. Both the hires rate and the layoff rate are currently below their 2019 (pre-COVID) average, with hiring activity hovering around rates seen all the way back in 2014-2016.
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