Job Openings and Labor Turnover: September 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 September, the number of job openings in the U.S. was little changed at 2.5 million, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The hires rate (3.1 percent) and the separations rate (3.3 percent) were unchanged and remained low in September. 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 little changed in September at a rate of 1.9 percent. The number of job openings has fallen by 2.3 million, or 48 percent, since the most recent peak in June 2007. The job openings rate decreased in state and local government in September and was little changed in the remaining industries. The job openings rate increased in the Midwest. (See table 1.)

Over the 12 months ending in September, the job openings rate (not seasonally adjusted) decreased for total nonfarm, total private, and government. The job openings rate also decreased in the following industries: construction; durable goods manufacturing; nondurable goods manufacturing; transportation, warehousing, and utilities; health care and social assistance; accommodation and food services; federal government; and state and local government. The job openings rate decreased in 3 of the 4 regions—Midwest, South, and West. (See table 5.)

Hires

The hires level was little changed at 4.0 million in September but has declined by 1.6 million, or 29 percent, since its most recent peak in July 2006. The hires rate was unchanged in September at 3.1 percent. The hires rate increased in construction and was little changed in the remaining industries and all four regions. (See table 2.)

Over the 12 months ending in September, the hires rate (not seasonally adjusted) declined for total nonfarm, total private, and government. The hires rate decreased over the 12 months for retail trade; finance and insurance; accommodation and food services; and state and local government. The rate increased for educational services. The hires rate fell over the past 12 months in the Midwest and West. (See table 6.)

Separations

The total separations, or turnover, rate was unchanged in September and remained low at 3.3 percent. The total separations rate (not seasonally adjusted) decreased over the 12 months ending in September for total nonfarm and total private. Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements). (See tables 3 and 7.)

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. The quits rate remained unchanged in September at 1.4 percent. The quits level was 1.8 million in September, which is 43 percent lower than its most recent peak in December 2006. (See table 4.)

Over the 12 months ending in September, the quits rate (not seasonally adjusted) was lower for total nonfarm, total private, government, the majority of industries, and the South, Midwest, and West regions. The industries for which the quits rate was little changed over the year include construction; nondurable goods manufacturing; information; professional and business services; health care and social assistance; other services; and federal government. (See table 8.)

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. The layoffs and discharges levels for total nonfarm, total private, and government were little changed in September at 2.1 million, 2.0 million, and 118,000 respectively. The corresponding layoffs and discharges rates were 1.6 percent, 1.9 percent, and 0.5 percent. The number of layoffs and discharges at the total nonfarm level in September was 35 percent higher than the most recent trough in January 2006. (See table B below.)

The layoffs and discharges rate (not seasonally adjusted) was little changed over the 12 months ending in September for total nonfarm and total private, while the rate increased for government. The layoffs and discharges rate rose in mining and logging; construction; transportation, warehousing, and utilities; other services; federal government; and state and local government. The rate decreased in retail trade. The layoffs and discharges rate increased in the Northeast. (See table 9.)

The other separations series is not seasonally adjusted. In September, there were 323,000 other separations for total nonfarm, 266,000 for total private, and 57,000 for government. Compared to September 2008, the number of other separations was little changed for total nonfarm, total private, and government. (See table 10.)

The total separations level 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 separations due to quits declined from the most recent high of 59 percent in January 2008 to a series low of 38 percent in April 2009. It then rose slightly and stood at 42 percent in September 2009. The proportion of separations due to layoffs and discharges reached a series high of 55 percent in July 2009 then dropped to 50 percent in September 2009. (See tables 3 and 4, and table B above.)

Net Change in Employment

Over the 12 months ending in September, hires totaled 50.4 million and separations totaled 55.6 million, yielding a net employment loss of 5.2 million.