Job Openings and Labor Turnover: January 2006

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 job openings, hires, and total separations rates were all unchanged in January, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector by indus- try and geographic region. The annual turnover, or separations, rate rose to 41 percent in 2005, up from 37 percent in 2003.

Job Openings

On the last business day of January 2006, there were 3.9 million job openings in the United States, and the job openings rate was 2.8 percent. (See table 1.) The job openings rate was unchanged in January but has generally trended upward since September 2003. In January, the job open- ings rate fell in construction. Rates did not change significantly in any geographic region.

Hires and Separations

The hires rate was unchanged at 3.5 percent in January. (See table 2.) Hires are any additions to the payroll during the month. Over the month, the hires rate increased in manufacturing; trade, transportation, and utilities; and government. The hires rate did not change significantly in any region.

The total separations, or turnover, rate was unchanged at 3.2 percent in January. (See table 3.) Separations are terminations of employment that occur at any time during the month. In January, the total separa- tions rate decreased in the trade, transportation, and utilities industry but increased in professional and business services and in government. The total separations rate did not change significantly in any region.

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 little changed at 2.0 percent in January. (See table 4.) The quits rate fell in the trade, transportation, and utilities industry but increased in the professional and business services industry. The quits rate rose in the Midwest.

The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. From January 2005 to January 2006, the layoffs and discharges rate fell to 1.2 percent, and the other separations rate rose to 0.3 percent. (See tables 9 and 10.)

Hires and separations data help show dynamic flows in the labor market. Over the last 12 months, hires have averaged 4.8 million per month and separations have averaged 4.5 million per month (not seasonally adjusted). The comparable figures a year earlier were 4.6 million hires and 4.4 million separations. (See the Technical Note for additional information on these measures.)

Annual Levels and Rates

This release begins the publication of JOLTS annual rates and levels for hires, total separations, quits, layoffs and discharges, and other separations. (See tables 11 through 20.) These data series were developed in response to numerous requests by data users. Note that annual figures for job openings are not calculated because job openings are measured on a stock, or point-in-time, basis rather than on a flow basis over a specified time period. This first release includes annual data for the years 2001 through 2005. The annual figures and additional tables will be published with the release of January data each year. (See the Technical Note for additional information on these measures.)

Calculating annual levels and rates allows additional comparisons across years. In 2005, annual hires rose for the second year in a row, reaching 57 million after weaker hiring in 2002 and 2003. (See table 11.) Total separations rose to 55 million in 2005, yielding an annual turnover rate of 41 percent. (See tables 13 and 14.) (The annual turnover rate is the number of total separations during the entire year as a percent of annual average employment.) The number of quits increased notably for the second year in a row, reaching 31 million in 2005, while the quits rate rose to 23 percent for the first time since 2001. (See tables 15 and 16.) In contrast, the levels of layoffs and discharges were relatively flat over the past several years at around 20 million per year, as was the level of other separations at about and 3.7 million per year. (See tables 17 and 19.) The corresponding rates for these measures also have shown little change since 2001. (See table 18 and 20.)

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

The Job Openings and Labor Turnover release for February 2006 is scheduled to be issued on Tuesday, April 11, 2006.

Revisions to Job Openings and Labor Turnover Data

In accordance with annual practice, the Job Openings and Labor Turnover Survey (JOLTS) data have been revised to reflect annual updates to the Current Employment Statistics (CES), or establishment survey, employment estimates. The JOLTS employment levels (not pub- lished) are ratio-adjusted to the CES employment levels, and the re- sulting ratios are applied to all JOLTS data elements. This annual benchmark process resulted in revisions to all not seasonally adjusted JOLTS data series from April 2004 forward, the time period since the last benchmark was established. Additionally, the seasonally adjusted JOLTS data series have been recalculated from December 2000 forward to reflect updated seasonal adjustment factors.

Further information on the revisions released today may be obtained by calling 202-691-5870 or via the Internet on the JOLTS homepage.