KELYA - Kelly Services Inc. (KELYA) - What Did The JOLTS Report Say?
JOLTS Report. On Monday, the Bureau of Labor Statistics released the monthly Job Openings and Labor Turnover Survey (JOLTS) report. The JOLTS program produces data on job openings, hires, and separations. The report can be used to confirm other data relative to jobs and employment, with a higher JOLTS number suggesting increasing demand for workers and a falling number pointing to less demand.New Hires and Job Openings. New hires in June were 6.7 million down 0.5 million from May's record, but June's number is still the second highest in the series record. It is estimated the U.S. labor market has recovered some 42% of the jobs lost during the COVID pandemic. At the end of June, job openings were 5.9 million, up 518,000 over the end of May, indicating a growing job market. This was the third consecutive month of rising job openings. While still below the 7 million job openings in January, the June number is substantially improved from the April low of 5 million. Industries. Given that 45% of layoffs occurred in the retail and leisure/hospitality industries and many have written off these industries, it is surprising that the leisure/hospitality industry has added 541,000 job openings since April, bringing the number to openings to 90% of the pre-pandemic level. Same is true for retail. Key Takeaways. The labor market appears to be bouncing back faster than many expected. According to DataTrek, many employment measures have not only bounced back but are above their Great Recession levels. For example, job openings as a percentage of the labor force of 3.68% is higher than the peak of the last economic cycle (April 2006 with 3.26%). Hires as a percent of the labor force also is above the post-recession high, while layoffs and discharges as a percentage are approaching their series lows, a good thing.What's This Mean for Kelly Services? The JOLTS report data are indicating a more rapid return to employment normalcy than is the consensus perception. It remains to be seen if extended government stimulus and/or a return of extreme COVID related restrictions throw cold water on the jobs market. Overall, however, the JOLTS report paints a picture of an economy that could improve faster than expected increasing the demand for the services Kelly provides.Read More >>