The Labor Department’s JOLTs survey came out yesterday and it showed continued improvement in the outlook for the labor market. The ratio of job openings to the number of unemployed workers rose to a post recovery high. When the number of job openings to the number of unemployed workers rises, it signals that labor demand is outpacing labor supply. When demand outpaces supply, higher prices are often the result. The historical lead time for the ratio of job openings to the number of unemployed is about six months. It looks like higher wages are coming down the pike.
Jeremy Jones, CFA
Latest posts by Jeremy Jones, CFA (see all)
- Wal-Mart Shares Soar - November 17, 2017
- Is This the Start of a Major Downturn or Just a Healthy Correction? - November 15, 2017
- Are Stocks Cheap Because Interest Rates Are Low? - November 14, 2017