Job Openings and Labor Turnover: March 2004

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The number of hires rose by 441,000 in March to 4.5 million, while the number of separations was about unchanged at 4.1 million, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings rate edged up to 2.3 percent in March. The series in this report include estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector with breakouts by industry and geographic region.

Job Openings

On the last business day of March 2004, there were 3.1 million job open- ings in the United States, and the job openings rate (the number of job openings on the last business day of the month divided by employment plus job openings) was 2.3 percent. (See table 1.) The job openings rate has ranged from 2.0 to 2.4 percent since October 2001. Over the month, the job openings rates for major industry categories showed little or no change. Among the geographic regions, there was an increase in the job openings rate in the Northeast.

Hires and Separations

The hires rate (the number of hires during the month divided by employ- ment) increased in March to 3.5 percent. (See table 2.) Hires are any additions to the payroll during the month. The hires rate was at its highest point since late 2001. The hires rate increased in professional and business services in March, largely offsetting the drop in February, while the hires rates for trade, transportation, and utilities and leisure and hospitality continued on an upward trend. Other major industries showed little or no change in their hires rates over the month. The hires rate increased in the South, Midwest, and West regions in March.

The total separations, or turnover, rate (the number of separations during the month divided by employment) was 3.2 percent in March 2004 and has remained in the range of 2.9 to 3.3 percent since December 2001. Sepa- rations are terminations of employment that occur at any time during the month. The major industries showed little or no change in their total separations rates over the month. (See table 3.)

Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements). The quits rate, which can serve as a barometer of workers' ability to change jobs, was unchanged in March at 1.7 percent. (See table 4.) Quits as a percent of the total separations has been increasing since December 2003; quits were 54.3 percent of total separations in March. The other two components of total separations, layoffs and discharges (1.0 per- cent) and other separations (0.2 percent), are not seasonally adjusted. (See tables 9 and 10.)

Hires and separations help show dynamic flows in the labor market. Over the last 12 months, hires have averaged 4.1 million per month and separations have averaged 3.9 million per month. (See the Technical Note for additional information on these measures.) Hires have outpaced separations in 11 of the past 12 months. The trade, transportation, and utilities; professional and business services; and leisure and hospitality industries have reported the largest share of hires and separations over the last year.

For additional information, please see the Technical Note or the JOLTS website at www.bls.gov/jlt/. Additional information about JOLTS also may be obtained by e-mailing Joltsinfo@bls.gov or by calling (202) 691-5870.