Job Openings and Labor Turnover: June 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 continued to outpace the number of separations in June, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. There were 4.3 million hires and 4.1 million separations in June, little changed from the month before. The job openings rate was unchanged at 2.3 percent in June. The series in this report include estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector by industry and geographic region.

Job Openings

On the last business day of June 2004, there were 3.0 million job openings 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 remained in the range of 2.0 percent to 2.4 percent since October 2001. In June, the job openings rate showed little or no change for all major industry categories.

Hires and Separations

The hires rate (the number of hires during the month divided by employ- ment) was 3.3 percent in June, little changed from a month earlier. (See table 2.) Hires are any additions to the payroll during the month. Most major industries showed little or no change in their hires rates.

The total separations, or turnover, rate (the number of separations during the month divided by employment) was 3.1 percent in June, unchanged from the month before. The total separations rate has remained in the range of 2.9 percent to 3.3 percent since December 2001. Separations are terminations of employment that occur at any time during the month. (See table 3.)

Total separations include 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 at 1.7 percent in June. (See table 4.) The quits rate increased in professional and business services over the month. Quits as a percent of the total separations increased to 55.2 percent in June. The other two components of total separations, layoffs and discharges (1.1 percent) and other separations (0.3 percent), are not seasonally adjusted. The layoffs and discharges rate was lower than a year ago, and the other separations rate was little changed over the year. (See tables 9 and 10.)

Hires and separations help show dynamic flows in the labor market. Over the last 12 months, hires have averaged 4.2 million per month and separations have averaged 4.0 million per month. (See the Technical Note for additional information on these measures.) Hires have outpaced separations in each of the last 14 months. In June, hires outpaced separations in every industry.

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