Job Openings and Labor Turnover: March 2009

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 March, job openings in the U.S. numbered 2.7 million, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings level and rate (2.0 percent) were at their lowest points since the series began over 8 years ago. The hires rate (3.1 percent) was little changed in March and remained low. The total separations rate (3.6 percent) was unchanged in March. 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 The job openings rate fell in March to a series low of 2.0 percent. The number of job openings has trended downward since mid- 2007, and, at 2.7 million in March, monthly openings were down 2.1 million, or 44 percent, since the most recent high point in June 2007. The decline in the job openings rate at the total nonfarm and total private levels was due to small, nonsignificant declines in nearly every industry and a significant decline in retail trade. (See table 1.)

Over the 12 months ending in March, the job openings rate (not seasonally adjusted) fell significantly in nearly every industry and in three of the four regions. The rate did not change significantly in the Northeast region and in construction; information; other services; and federal government. (See table 5.)

Hires Hires, at 4.2 million in March, were essentially unchanged from February. However, monthly hires were down 1.5 million, or 26 percent, since the most recent high point in July 2006. The hires rate was 3.1 percent in March. No industry experienced a significant change in the hires rate over the month. Regionally, the rate changed significantly only in the Northeast, where it fell. (See table 2.)

Over the 12 months ending in March, the hires rate (not seasonally adjusted) did not increase significantly in any industry. The rate decreased significantly over the year for total nonfarm, total private, and many industries, including mining and logging; finance and insurance; professional and business services; health care and social assistance; arts, entertainment, and recreation; accommodation and food services; and state and local government. Regionally, the hires rate dropped significantly over the past 12 months in the South and West. The rate did not change significantly in the Midwest and Northeast. (See table 6.)

Separations Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements). The total separations, or turnover, rate (seasonally adjusted) was 3.6 percent in March, unchanged from February. The total separations rate (not seasonally adjusted) was also essentially unchanged over the 12 months ending in March, as quits fell while layoffs and discharges rose. (See tables 3, 7, 8 and 9.)

The quits rate can serve as a barometer of workers’ willingness or ability to change jobs. The rate remained at 1.4 percent in March—the lowest point in the 8-year series. Quits have been trending downward since December 2006, declining by 1.3 million, or 42 percent. Comparing March 2009 to March 2008, the quits rate was significantly lower for total nonfarm, total private, government, and many industries, including durable goods manufacturing; nondurable goods manufacturing; retail trade; finance and insurance; professional and business services; health care and social assistance; and accommodation and food services. The rate did not rise significantly in the past 12 months in any industry. Regionally, the quits rate fell significantly over the past 12 months in all four regions. (See tables 4 and 8.)

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. Layoffs and discharges in March were 2.6 million for total nonfarm, 2.4 million for total private, and 113,000 for government, corresponding to layoffs and discharges rates of 1.9 percent, 2.2 percent, and 0.5 percent, respectively. Over the 12 months ending in March, the layoffs and discharges rate (not seasonally adjusted) rose significantly for total nonfarm, total private, and many industries, including mining and logging; construction; durable goods manufacturing; nondurable goods manufacturing; transportation, warehousing, and utilities; finance and insurance; and real estate and rental and leasing. In the remaining industries, the rate was essentially unchanged. Regionally, the layoffs and discharges rate rose in the Midwest, Northeast, and South and was little changed in the West. (See table 9 for not seasonally adjusted layoffs and discharges. Seasonally adjusted layoffs and discharges are not presented in a table but are available through the JOLTS web site.)

The other separations series is not seasonally adjusted. In March, there were 290,000 other separations for total nonfarm, 259,000 for total private, and 31,000 for government. Compared to March 2008, the number of other separations was little changed for total nonfarm and total private, but declined for government. (See table 10.)

The total separations rate is driven by the relative contribution of its three components—quits, layoffs and discharges, and other separations. The percentage of total separations attributable to the individual components has varied over time. The proportion of quits has been trending downward from the recent high of 59 percent in January 2008 to a series low of 39 percent in March 2009. The proportion of layoffs and discharges has increased, climbing from the most recent low of 33 percent in August 2006 to a series high of 54 percent in March 2009. (See tables 3 and 4.)

Net Change in Employment In the 12 months ending in March, hires totaled 54.6 million and separations totaled 58.9 million, yielding a net employment loss over the year of 4.3 million. The loss resulted from total separations remaining relatively level over the year, while hires trended downward.

The Job Openings and Labor Turnover release for April 2009 is scheduled to be issued on Tuesday, June 9.