The primary jobs report shows the net change in jobs—that measure slowed in March to a gain of 126,000, the weakest hiring in 15 months. The Jolts report, which is only available through February, tracks the millions of Americans each month who quit a job, are laid off, or start a new job. The softness in the Jolts report’s measures of hiring and quitting bolsters the case that the labor market has lost some of its momentum in the first quarter of 2015.
The report is closely followed by officials at the Federal Reserve, with Chairwoman Janet Yellen citing the rate of voluntary quitting as a key gauge of worker’s confidence in the economy. When the economy is stronger, workers are more likely to quit their job due to the greater ease of finding something different. The number of voluntary quits declined in February to 2.7 million from 2.8 million in January.
The report was not all dour news, however. The number of involuntary layoffs dropped to 1.6 million from 1.7 million in January and December. The rate of layoffs matched the lowest level seen since the year 2000.
And the increase in openings implies that employers have a desire for more workers, though they took a step back in their hiring in February. There were 1.7 workers for every job opening in February, compared with more than six for each available job during the worst of the crisis. The number of underemployed workers per job opening fell to 3.7 in February. Underemployment–which includes those who want a job but have become discouraged from searching, those marginally attached to the labor force, and also part-time workers who want full-time work–has remained elevated throughout the recovery.
