Job Openings and Labor Turnover: September 2007

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.

On the last business day of September, 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 rate and total separations rate were unchanged in September, while the hires rate was essentially unchanged. This re- lease 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 September, the job openings rate remained at 2.9 percent. The rate has been 2.9 percent for 7 of the past 8 months. Job openings include only those jobs still open on the last business day of the month. The job open- ings rate changed significantly in September only in the construction in- dustry, rising from 1.9 in August to 2.4 in September. The job openings rate did not change significantly in any region. The seasonally adjusted job openings rate was highest in September in the accommodations and food services industry (4.6 percent). (See table 1.)

Over the year, the job openings rate rose in construction (2.4 percent); nondurable manufacturing (2.7 percent); and accommodations and food services (4.5 percent). The rate fell over the year in natural resources and mining (1.7 percent); transportation, warehousing, and utilities (2.7 percent); in- formation (3.0 percent); professional and business services (3.7 percent); and state and local government (2.1 percent). Regionally, the job openings rate fell over the year in the Northeast (2.7 percent). (See table 5.)

Hires

The hires rate was little changed at 3.4 percent in September. Hires are any additions to the payroll during the month. In September, the hires rate changed significantly only in the education and health services sector, in which it fell. As in nearly every month, the seasonally adjusted hires rate was highest in September in accommodations and food services (6.3 percent). (See table 2.)

From September 2006 to September 2007, the hires rate increased in arts, entertainment, and recreation (6.4 percent) and in federal government (4.8 percent). The hires rate decreased over the year in transportation, ware- housing, and utilities (3.0 percent); information (2.0 percent); profes- sional and business services (4.6 percent); health care and social assis- tance (2.8 percent); and state and local government (2.3 percent). Region- ally, the hires rate fell over the year in the South (3.8 percent) and in the West (3.7 percent). (See table 6.)

Separations

The total separations, or turnover, rate was unchanged at 3.2 percent in September. Separations are terminations of employment that occur at any time during the month. Over the month, the separations rate changed signi- ficantly only in state and local government, in which it declined. The separations rate did not change significantly in any region over the month. From September 2006 to September 2007, the total separations rate increased in the finance and insurance industry (2.4 percent) and in the federal govern- ment (4.3 percent). Over the year, the total separations rate decreased only in state and local government (1.4 percent). Geographically, the total separa- tions rate declined in the Northeast (3.1 percent). (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 unchanged in September. The quits rate changed significantly over the month only in the accommodations and food services industry. None of the regions experienced a significant change in the quits rate over the month. As in every month since the series began in December 2000, the seasonally adjusted quits rate was highest in September in the accommodations and food services industry (3.5 percent). (See table 4.)

Over the year, the quits rate did not rise significantly in any industry but did fall in many industries, including wholesale trade (1.2 percent); information (1.4 percent); real estate and rental and leasing (1.6 percent); health care and social assistance (1.5 percent); accommodations and food services (4.1 percent); and federal government (1.5 percent). Geographically, the quits rate fell over the year in the Northeast (1.6 percent) and South (2.1 percent). (See table 8.)

The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. For September, the layoffs and discharges rate (1.3 percent) and level (1.9 million) were unchanged from a year earlier. The layoffs and discharges rate in September 2007 was highest in arts, entertainment, and recreation (6.9 percent). Over the year, the other separations rate (0.2 percent) and level (304,000) were essentially unchanged. (See tables 9 and 10.)

Flows in the Labor Market

Several industries consistently have high rates of both hires and sepa- rations. These include construction; retail trade; professional and business services; arts, entertainment, and recreation; and accommodations and food services. In the 12 months ending in September 2007, these 5 industries produced 34.0 million hires and 32.2 million separations. Thus, these five industries accounted for 58 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 39 percent of total nonfarm employment.

Although the month-to-month changes in job openings and turnover data are often small, some industries are experiencing significant over-the-year change. From September 2006 to September 2007, the information industry had decreases in the job openings, hires, and quits rates. Experiencing a decrease in the job openings and hires rates over the year were transporta- tion, warehousing, and utilities; professional and business services; and state and local government.

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 October 2007 is scheduled to be issued on Tuesday, December 11.