Macro Note 21

Why JOLTS quits and layoffs are different signals

BLS says quits are generally voluntary separations initiated by the employee, while layoffs and discharges are involuntary separations initiated by the employer. Because the two measures describe different types of turnover, they should not be read as interchangeable labor-market signals.

Why this note matters

Market commentary often compresses labor turnover into a single `people are leaving jobs` narrative. BLS's own JOLTS definitions say quits and layoffs or discharges come from different sides of the employment relationship and therefore carry different economic meaning.

Key takeaways

  • The BLS JOLTS overview says the survey produces estimates of job openings, hires, and separations, including quits and layoffs and discharges.
  • BLS says quits are generally voluntary separations initiated by the employee, so the quits rate can serve as a measure of workers' willingness or ability to leave jobs.
  • BLS says layoffs and discharges are involuntary separations initiated by the employer, making them a different labor-market signal from quits.

JOLTS does not treat all separations as the same event

The BLS Handbook of Methods overview says JOLTS produces monthly estimates of job openings, hires, and separations for the nation, and that the separations detail includes quits and layoffs and discharges. That structure alone tells you the survey was designed to separate turnover types rather than collapse them into one bucket.

So when a labor-market comment cites `separations`, the first follow-up question should be what kind of separations are moving. The topline can rise or fall for more than one reason.

Quits and layoffs point to different sides of labor-market pressure

In the February 2026 national release, BLS says quits are generally voluntary separations initiated by the employee and that the quits rate can serve as a measure of workers' willingness or ability to leave jobs. That makes quits a worker-side confidence and mobility signal.

The same release says layoffs and discharges are involuntary separations initiated by the employer. That makes layoffs and discharges more directly tied to employer decisions about labor demand, cost pressure, or business conditions.

  • Higher quits and higher layoffs do not say the same thing.
  • Quits lean toward worker choice and confidence.
  • Layoffs and discharges lean toward employer-driven contraction or restructuring.

Why Hynexly readers should care

If a labor-market note says `turnover increased`, that statement is incomplete until you know whether quits or layoffs were responsible. BLS defines them differently because they answer different economic questions.

For Hynexly readers, the practical rule is simple: when JOLTS moves markets, look past total separations and check the mix. Quits and layoffs may both sit inside turnover, but they point to different kinds of labor-market stress or confidence.

Source evidence snapshot

Job Openings and Labor Turnover Survey Overview

The BLS Handbook of Methods overview explains that JOLTS produces openings, hires, and separations, including quits and layoffs and discharges.

Open source

Job Openings and Labor Turnover - February 2026

The BLS national news release defines quits as generally voluntary separations and layoffs and discharges as involuntary separations initiated by the employer.

Open source