Job Openings and Labor Turnover: August 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 rate increased in August, while the hires rate de- creased and the total separations rate remained essentially unchanged, 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 August 2006, there were 4.1 million job openings in the United States and the job openings rate was 3.0 percent. The job openings rate increased over the month to the highest level since April 2001, after showing little change since November 2005. In August, the job openings rates increased in trade, transportation, and utilities and in three of the four regions--the Midwest, South, and West. There were no significant over-the-month decreases in the job openings rate in any industry or region. The industries with the highest seasonally ad- justed job openings rates in August 2006 were professional and business services (3.8 percent), leisure and hospitality (3.7 percent), and edu- cation and health services (3.6 percent). (See table 1.)

Over the year, the job openings rate rose in many of the private sector industries, in federal government, and in three of the four regions (Mid- west, Northeast, and South). The job openings rate did not decline signi- ficantly over the year in any industry or region. (See table 5.)

Hires

The hires rate decreased to 3.5 percent in August. Hires are any addi- tions to the payroll during the month. In August, the hires rate rose in government and fell in professional and business services and in the Mid- west and Northeast regions. The seasonally adjusted hires rate was high- est in the leisure and hospitality industry (6.1 percent). (See table 2.)

From August 2005 to August 2006, the hires rate increased in state and local government and decreased in other services and in the Northeast re- gion. (See table 6.)

Separations

The total separations, or turnover, rate was little changed at 3.2 per- cent in August. Separations are terminations of employment that occur at any time during the month. In August, the total separations rate increased in the West region but in none of the industries. The rate declined in gov- ernment and in the Midwest and Northeast 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 unchanged at 1.9 percent in August. Over the month, the quits rate did not change significantly in any industry or region. In August, the seasonally adjusted quits rate was the highest in the leisure and hospi- tality industry (4.2 percent), which also had the highest hires rate. (See table 4.)

Over the year, the quits rate grew in educational services and in state and local government. The quits rate declined in construction, retail trade, other services, and the Northeast. (See table 8.)

The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. From August 2005 to August 2006, the layoffs and discharges rate decreased to 1.2 percent. For August 2006, the arts, entertainment, and recreation industry had the highest layoffs and discharges rate (2.6 percent). From August 2005 to August 2006, the other separations rate was little changed at 0.2 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 August 2006, hires have averaged 4.8 million per month and separations have averaged 4.5 million per month (not season- ally adjusted). The comparable figures for the prior 12-month period were also 4.8 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 September 2006 is scheduled to be issued on Tuesday, November 7, 2006.