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On the last business day of April, job openings in the U.S. numbered 2.5 million, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings level was at its lowest point since the series began in December 2000. The hires rate (3.1 percent) was unchanged in April and remained low. The total separations rate (3.6 percent) was little changed over the month. 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 was unchanged in April at 1.9 percent. Since June 2007, the number of job openings has trended downward by 2.3 million, or 47 percent. In April, small declines in the job openings rate occurred in most industries; none of these declines were statistically significant. The job openings rate increased significantly for government due to an increase in job opportunities for temporary workers for Census 2010. (See table 1.)
Over the 12 months ending in April, the job openings rate (not seasonally adjusted) fell significantly in almost every industry except federal government where it rose significantly. The job openings rate also fell in all four regions. The rate did not change significantly in finance and insurance. (See table 5.)
Hires The hires level was little changed at 4.2 million in April. However, monthly hires experienced an overall downward trend, falling by 1.5 million, or 26 percent, since July 2006. The hires rate was 3.1 percent in April. Government experienced a significant increase in the hires rate over the month mainly due to hiring of temporary workers for Census 2010. The hires rate did not change significantly in the remaining industries. Regionally, the South experienced a significant increase in the hires rate. The remaining regions did not change significantly. (See table 2.)
Over the 12 months ending in April, the hires rate (not seasonally adjusted) increased significantly in federal government. The rate decreased significantly over the year for total nonfarm, total private, and many industries including mining and logging; durable goods manufacturing; nondurable goods manufacturing; wholesale trade; finance and insurance; educational services; health care and social assistance; arts, entertainment, and recreation; and accommodation and food services. Regionally, the hires rate dropped significantly over the past 12 months in the Midwest and West. The rate did not change significantly in the Northeast and South. (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 April, little changed from March. The total separations rate (not seasonally adjusted) decreased significantly over the 12 months ending in April. (See tables 3 and 7.)
The quits rate can serve as a barometer of workers’ willingness or ability to change jobs. Although the rate was little changed over the month at 1.3 percent in April, the quits rate was at the lowest point in the 8-year series. Quits have been trending downward since December 2006 to a level of 1.8 million, a decline of 1.4 million or 44 percent. Comparing April 2009 to April 2008, the quits rate (not seasonally adjusted) was significantly lower for total nonfarm, total private, and government.
Over the 12 months ending in April, the majority of industries experienced a significant decline in the quits rate with the exceptions of information; educational services; arts, entertainment, and recreation; other services; and federal government. The quits rate did not rise significantly over the past 12 months in any industry. 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 April were 2.6 million for total nonfarm, 2.4 million for total private, and 142,000 for government, corresponding to layoffs and discharges rates of 1.9 percent, 2.2 percent, and 0.6 percent, respectively. The layoffs and discharges rate was unchanged in April at the total nonfarm and total private levels. The government layoffs and discharges rate increased significantly.
Over the 12 months ending in April, the layoffs and discharges rate (not seasonally adjusted) rose significantly for total nonfarm, total private, government, and many industries including construction; durable goods manufacturing; retail trade; information; professional and business services; health care and social assistance; and state and local government. In the remaining industries, the layoffs and discharges rate did not change significantly. All four regions experienced a significant increase in the layoffs and discharges rate over the 12 months ending in April. (See table 9 for not seasonally adjusted layoffs and discharges.)
The other separations series is not seasonally adjusted. In April, there were 379,000 other separations for total nonfarm, 340,000 for total private, and 39,000 for government. Compared to April 2008, the number of other separations was little changed for total nonfarm, total private, and government. (See table 10.)
The total separations rate is influenced by the relative contribution of its three components—quits, layoffs and discharges, and other separations. The percentage of total separations at the total nonfarm level attributable to the individual components has varied over time. The proportion of quits has been trending downward from 59 percent in January 2008 to a series low of 38 percent in April 2009. The proportion of layoffs and discharges has increased from 33 percent in August 2006 to 54 percent in April 2009. (See tables 3, 4, and table B above.)
Net Change in Employment In the 12 months ending in April, hires totaled 53.7 million and separations totaled 58.4 million, yielding a net employment loss over the year of 4.7 million. Hires trended downward while total separations remained relatively level over the year. The two major components of separations had offsetting movements; quits declined while layoffs increased.
The Job Openings and Labor Turnover release for May 2009 is scheduled to be issued on Tuesday, July 7.
Source: U.S. Bureau of Labor Statistics · Original release Jun 9, 2009.
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