Job Openings and Labor Turnover: July 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 essentially unchanged in July, 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 July 2006, there were 3.8 million job openings in the United States, and the job openings rate was 2.8 percent. The job open- ings rate was unchanged over the month and has been little changed since Novem- ber 2005. In July, the job openings rate increased in government. There were no significant decreases in the job openings rate in any industry or region. The industries with the highest seasonally adjusted job openings rates in July 2006 were education and health services (3.6 percent), leisure and hospitality (3.4 percent), and professional and business services (3.3 percent). (See table 1.)

Over the year, the job openings rate increased in transportation, warehousing, and utilities; information; health care and social assistance; state and local gov- ernment; and the West region. The job openings rate declined significantly over the year in the arts, entertainment, and recreation industry. (See table 5.)

Hires

The hires rate was essentially unchanged at 3.7 percent in July. Hires are any additions to the payroll during the month. In July, the hires rate increased in education and health services and in the Northeast region and de- clined in government. The seasonally adjusted hires rate was highest in the leisure and hospitality industry (6.4 percent). (See table 2.)

From July 2005 to July 2006, the hires rate rose in nondurable goods manufacturing, information, finance and insurance, real estate rental and leasing, and health care and social assistance. The hires rate declined in natural resources and mining over the year. The hires rate did not change significantly over the year in any geographic region. (See table 6.)

Separations

The total separations, or turnover, rate was little changed at 3.3 percent in July. Separations are terminations of employment that occur at any time during the month. In July, the total separations rate increased in construc- tion and in the Midwest region and declined in trade, transportation, and util- ities and in the South and West regions. (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 July. The quits rate decreased in leisure and hospitality and in the South region. In July, the seasonally adjusted quits rate was highest in the leisure and hospitality in- dustry (4.2 percent), which also had the highest hires rate. (See table 4.)

Over the year, the quits rate grew in transportation, warehousing, and utilities; information; real estate rental and leasing; and state and local government. The quits rate declined in federal government. The quits rate did not change significantly over the year in any geographic region. (See table 8.)

The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. From July 2005 to July 2006, the layoffs and discharges rate was about unchanged at 1.0 per- cent. For July 2006, the construction industry had the highest layoffs and discharges rate (2.6 percent). From July 2005 to July 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 July 2006, hires have averaged 4.9 million per month and separations have averaged 4.6 million per month (not seasonally ad- justed). The comparable figures for the prior 12-month period were 4.7 mil- lion hires and 4.5 million separations. (See the Technical Note for addi- tional 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 August 2006 is scheduled to be issued on Wednesday, October 11, 2006.