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On the last business day of March, there were 4.2 million job openings in the United States, and the job openings rate was 2.9 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings and hires rates were unchanged, and the total separations rate was essentially unchanged in March. This release includes estimates of the num- ber and rate of job openings, hires, and separations for the total nonfarm sector by industry and geographic region.
Job Openings
At 2.9 percent in March, the job openings rate has been essentially flat since November 2005. In March, the job openings rate rose in professional and business services and fell in construction. None of the regions expe- rienced a significant over-the-month change in the job openings rate. The seasonally adjusted job openings rate was highest in March for the follow- ing industries: accommodations and food services (4.1 percent), profes- sional and business services (4.1 percent), and education and health ser- vices (3.6 percent). (See table 1.)
Over the year, the job openings rate increased in nondurable goods manu- facturing, wholesale trade, and information. The rate decreased in finance and insurance and in educational services. The job openings rate did not change significantly over the year in any of the regions. (See table 5.)
Hires
The hires rate was unchanged at 3.5 percent in March. Hires are any additions to the payroll during the month. In March, the hires rate fell in manufacturing and government. None of the regions experienced a sig- nificant over-the-month change in the hires rate. The seasonally adjusted hires rate was highest in March in accommodations and food services (6.4 percent). (See table 2.)
From March 2006 to March 2007, the hires rate rose in wholesale trade and educational services and fell in retail trade; transportation, ware- housing, and utilities; professional and business services; federal gov- ernment; and state and local government. Regionally, the hires rate de- creased over the year in the Northeast. (See table 6.)
Separations
The total separations, or turnover, rate was little changed at 3.4 per- cent in March. Separations are terminations of employment that occur at any time during the month. In March, the only sector to experience a change in the separations rate was government, where the rate declined slightly. None of the regions experienced a significant change in the sep- arations rate. From March 2006 to March 2007, the total separations rate did not rise significantly in any industry; the rate declined in construc- tion, other services, and federal government. Geographically, none of the regions experienced a significant change in the total separations rate over the year. (See tables 3 and 7.)
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 2.0 percent in March. Over the month, the quits rate rose in state and local government; the rate did not fall in any industry. None of the regions experienced a significant change in the quits rate over the month. In March, the seasonally adjusted quits rate was high- est in the accommodations and food services industry (4.7 percent). (See table 4.)
Over the year, the quits rate rose in nondurable manufacturing; finance and insurance; and real estate and rental and leasing. The quits rate fell over the year in construction, other services, and federal government. Geo- graphically, the quits rate declined over the year in the Northeast region. (See table 8.)
The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. For March, the layoffs and discharges rate (1.0 percent) and level (1.3 million) were unchanged from a year earlier. As is typical many in months, the layoffs and dis- charges rate in March was highest in construction (2.4 percent) and arts, entertainment, and recreation (2.2 percent). From March 2006 to March 2007, the other separations rate was essentially unchanged at 0.2 percent, and the level was little changed at 288,000. (See tables 9 and 10.)
The total separations rate is driven by the relative contribution of its three components (quits, layoffs and discharges, and other separations), with quits contributing the largest portion. The percentage of total sepa- rations attributable to quits has risen and fallen over time along with em- ployment levels. The proportion of quits fell from 61 percent in February 2001 to 51 percent in August 2003 (seasonally adjusted), and has since risen. In March 2007, the percentage of quits was 58 percent.
Flows in the Labor Market
Hires and separations data help show dynamic flows in the labor market. For the 12 months ending in March 2007, hires have averaged 4.9 million per month and separations have averaged 4.6 million per month (not seasonally adjusted). The comparable figures for the prior 12-month period were 4.8 million hires and 4.6 million separations. (See the Technical Note for additional information on these measures.)
Several industries consistently have high rates of both hires and sepa- rations. These include construction; retail trade; professional and busi- ness services; arts, entertainment, and recreation; and accommodations and food services. In the 12 months ending in March 2007, these 5 industries produced 34.8 million hires and 32.8 million separations. Thus, these five industries accounted for 59 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 39 percent of total nonfarm employment.
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 April 2007 is scheduled to be issued on Tuesday, June 12.
Source: U.S. Bureau of Labor Statistics · Original release May 8, 2007.
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