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On the last business day of April, there were 4.1 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 in April, and the total separa- tions rate was essentially unchanged. 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
In April, the job openings rate was unchanged at 2.9 percent. Job openings include only those jobs still open on the last business day of the month. The job openings rate fell over the month in the accommodations and food services industry. None of the regions experienced a significant over-the-month change in the job openings rate. The seasonally adjusted job openings rate was high- est in April for the following industries: professional and business services (4.2 percent), accommodations and food services (3.8 percent), and education and health services (3.7 percent). (See table 1.)
Over the year, the job openings rate increased in nondurable goods manufac- turing; health care and social assistance; and other services. The rate de- creased in finance and insurance; educational services; and arts, entertainment, and recreation. 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 April. Hires are any addi- tions to the payroll during the month. In April, the hires rate increased in accommodations and food services. None of the regions experienced a significant over-the-month change in the hires rate. The seasonally adjusted hires rate was highest in April in accommodations and food services (7.1 percent). (See table 2.)
From April 2006 to April 2007, the hires rate rose in nondurable goods manu- facturing; finance and insurance; accommodations and food services; and federal government. The hires rate fell in real estate and rental and leasing; educational services; and arts, entertainment, and recreation. None of the regions experienced a significant over-the-year change in the hires rate. (See table 6.)
Separations
The total separations, or turnover, rate was little changed at 3.3 percent in April. Separations are terminations of employment that occur at any time during the month. In April, none of the industries or regions experienced a significant change in the separations rate. From April 2006 to April 2007, the total separa- tions rate increased in durable goods manufacturing; arts, entertainment, and re- creation; and federal government. The total separations rate decreased in infor- mation. Geographically, the total separations rate rose over the year in the South region. (See tables 3 and 7.)
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 1.9 percent in April. None of the industries or regions experienced a significant change in the quits rate over the month. In April, the seasonally adjusted quits rate was highest in the accommodations and food services industry (4.6 percent). (See table 4.)
Over the year, the quits rate rose in nondurable goods manufacturing. The quits rate fell over the year in transportation, warehousing, and utilities; and information. Geographically, the quits rate rose over the year in the South region. (See table 8.)
The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. For April, the layoffs and discharges rate (1.1 percent) and level (1.5 million) were essentially unchanged from a year earlier. As is typical many months, the layoffs and discharges rate in April was highest in arts, entertainment, and recreation (5.4 percent), construction (2.3 percent), and professional and business ser- vices (2.3 percent). From April 2006 to April 2007, the other separations rate decreased to 0.2 percent, and the level decreased to 308,000. (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 April 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 April 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 ad- ditional information on these measures.)
Several industries consistently have high rates of both hires and separa- tions. These include construction; retail trade; professional and business services; arts, entertainment, and recreation; and accommodations and food services. In the 12 months ending in April 2007, these five industries pro- duced 34.8 million hires and 33.0 million separations. Thus, these five in- dustries 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 May 2007 is scheduled to be issued on Tuesday, July 10.
Source: U.S. Bureau of Labor Statistics · Original release Jun 12, 2007.
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