Job Openings and Labor Turnover: December 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 December, there were 4.0 million job openings in the United States, and the job openings rate was 2.8 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings and hires rates were essentially unchanged in December. The separations rate fell to 3.1 percent in December. 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.

Although the month-to-month changes in job openings, hires, and turnover data are often small, some over-the-year changes are significant. From December 2006 to December 2007, the job openings, hires, quits, and total separations rates all fell significantly for both the total nonfarm and total private sectors. (See tables 5, 6, 7, and 8.)

Job Openings

In December, the job openings rate remained at 2.8 percent. Job openings include only those jobs open on the last business day of the month. Over the month, the job openings rate did not change significantly in any industry or region. As occurs nearly every month, the seasonally adjusted job openings rate was highest in the accommodation and food services industry (4.4 percent). (See table 1.)

Over the year, the job openings rate rose significantly only in construction (to 1.6 percent). The rate fell over the year in durable goods manufacturing (1.7 percent); retail trade (1.8 percent); information (2.3 percent); real estate and rental and leasing (2.0 percent); arts, entertainment, and recreation (2.1 per- cent); other services (2.0 percent); and state and local government (1.8 percent). Regionally, the job openings rate fell over the year in the Northeast (2.1 percent) and in the South (2.7 percent). (See table 5.)

Hires

The hires rate was little changed at 3.3 percent in December. Hires are any additions to the payroll during the month. In December, the hires rate increased in state and local government (to 1.6 percent) and decreased in education and health services (2.5 percent). The hires rate did not change significantly in December in any region. As occurs nearly every month, the seasonally adjusted hires rate was highest in December in accommodation and food services (6.2 percent). (See table 2.)

From December 2006 to December 2007, the hires rate decreased in professional and business services (to 3.5 percent), health care and social assistance (1.9 percent), and in the West region (2.6 percent). The hires rate did not increase significantly in any industry or region over the year. (See table 6.)

Separations

The total separations, or turnover, rate fell to 3.1 percent in December. Separa- tions are terminations of employment that occur at any time during the month. Over the month, the separations rate decreased in manufacturing (to 2.3 percent), retail trade (4.3 percent), and the Northeast (2.5 percent). From December 2006 to December 2007, the total separations rate rose in federal government (1.6 percent). The rate fell over the year in durable goods manufacturing (1.5 percent), information (1.6 percent), finance and insurance (1.8 percent), and in the Midwest region (2.9 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, fell slightly in December in manufacturing (to 1.2 percent) and in the Northeast (1.2 percent). The quits rate did not rise significantly in any industry or region over the month. As has occurred every month since the series began in December 2000, the seasonally adjusted quits rate was highest in the accommodation and food services industry (4.5 percent). (See table 4.)

Over the year, the quits rate did not rise significantly in any industry but did fall in several industries, including durable goods manufacturing (to 0.6 percent), information (0.9 percent), finance and insurance (0.8 percent), professional and busi- ness services (1.7 percent), health care and social assistance (1.3 percent), and in the South region (1.6 percent). (See table 8.)

The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. For December, the layoffs and discharges rate (1.3 percent) and level (1.8 million) were unchanged from a year earlier. The layoffs and discharges rate in December 2007 was highest in construction (3.4 percent). The other separations rate (0.2 percent) and level (324,000) were essentially unchanged over the year. (See tables 9 and 10.)

Flows in the Labor Market

Several industries consistently have high rates of both hires and separations. These include construction; retail trade; professional and business services; arts, entertain- ment, and recreation; and accommodation and food services. In the 12 months ending in December 2007, these 5 industries produced 33.4 million hires and 32.0 million separa- tions. 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.

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 January 2008 is scheduled to be issued on Wednesday, March 12.