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The hires and total separations rates edged down, while the job openings rate was essentially unchanged in June, 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 industry and geographic region.
Job Openings
On the last business day of June 2006, there were 4.0 million job openings in the United States, and the job openings rate was 2.9 percent. The job open- ings rate was about unchanged over the month and has been essentially unchanged since November 2005. In June, the job openings rate increased in construction and government and declined in professional and business services. The indus- tries with the highest seasonally adjusted job openings rate in June 2006 were education and health services (3.7 percent), leisure and hospitality (3.6 per- cent), and professional and business services (3.4 percent). (See table 1.)
Over the year, the job openings rate increased in many industries and in three of the four regions--the Northeast, South, and West. None of the indus- tries or regions experienced a significant decrease in the job openings rate from the prior year. (See table 5.)
Hires
The hires rate edged down to 3.5 percent in June. Hires are any additions to the payroll during the month. In June, the hires rate decreased in profes- sional and business services, education and health services, and in the North- east and Midwest regions. There were no significant increases in the hires rate in any industry or region. The seasonally adjusted hires rate was high- est in the leisure and hospitality industry (6.5 percent). (See table 2.)
From June 2005 to June 2006, the hires rate rose in nondurable goods manu- facturing, educational services, and state and local government and declined in construction; arts, entertainment, and recreation; and the federal govern- ment. The hires rate did not change significantly over the year in any geo- graphic region. (See table 6.)
Separations
The total separations, or turnover, rate decreased to 3.4 percent in June. Separations are terminations of employment that occur at any time during the month. In June, the total separations rate decreased in construction, govern- ment, and the Midwest region. There were no significant increases in the total separations rate in any industry or region. (See table 3.)
Total separations include quits (voluntary separations), layoffs and dis- charges (involuntary separations), and other separations (including retire- ments). The quits rate, which can serve as a barometer of workers' ability to change jobs, was about unchanged at 1.9 percent in June. The quits rate decreased in construction, professional and business services, and govern- ment. In June, the seasonally adjusted quits rate was highest in the lei- sure and hospitality industry (4.5 percent), which also had the highest hires rate. (See table 4.)
Over the year, the quits rate grew in nondurable goods manufacturing and accommodations and food services as well as in the South region. The quits rate declined in professional and business services. (See table 8.)
The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. From June 2005 to June 2006, the layoffs and discharges rate decreased to 1.1 percent. For June 2006, the professional and business services industry had the highest layoffs and discharges rate (1.9 percent). From June 2005 to June 2006, the other separations rate increased to 0.3 percent. (See tables 9 and 10.)
Flows in the Labor Market
Hires and separations data help show dynamic flows in the labor market. Over the 12 months ending in June 2006, hires have averaged 4.8 million per month and separations have averaged 4.5 million per month (not seasonally adjusted). The comparable figures for the prior 12-month period were 4.7 million hires and 4.5 million separations. (See the Technical Note for additional information on these measures.)
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 July 2006 is scheduled to be issued on Tuesday, September 12, 2006.
Source: U.S. Bureau of Labor Statistics · Original release Aug 9, 2006.
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