Job Openings and Labor Turnover: February 2010

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.

There were 2.7 million job openings on the last business day of February 2010, the U.S. Bureau of Labor Statistics reported today. The job openings rate was little changed over the month at 2.1 percent. The hires rate (3.1 percent) and the separations rate (3.1 percent) were also little changed in February. 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 number of job openings was little changed in February at 2.7 million. Although little changed over the month, the level has trended upward since the most recent trough of 2.3 million in July 2009. The job openings level was little changed in February for most industries and all four regions. (See table 1.)

In February, the number of job openings was little different from 12 months earlier for total nonfarm, total private, and government. The job openings level was little changed in most industries and in 3 of the 4 regions over the year; the level fell in the South. (See table 5.)

Hires

The hires rate was little changed in February at 3.1 percent. The rate has remained between 3.0 percent and 3.2 percent since November 2008. After falling from the most recent peak of 5.6 million hires in January 2005, the hires level reached a low point of 3.9 million in June 2009. In February 2010, the hires level was 4.0 million. The hires rate was little changed in February for all industries and 3 of the 4 regions; the rate decreased in the Northeast. (See table 2.)

Over the 12 months ending in February, the hires rate (not seasonally adjusted) was unchanged for total nonfarm and total private, but increased for government. The hires rate was little changed in the remaining industries and in all four regions over the year. (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 was little changed in February for total nonfarm and remained low at 3.1 percent. The rate was little changed for total private and government. The total separations rate (not seasonally adjusted) decreased over the 12 months ending in February for total nonfarm and total private, while the rate for government was little changed. (See tables 3 and 7.)

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. In February, the quits rate was little changed for total nonfarm (1.4 percent), total private (1.6 percent), and government (0.6 percent). The rate was little changed over the month for most industries while increasing in the Northeast and West regions. After falling from the most recent peak of 3.2 million in November 2006, the number of quits has hovered between 1.7 million and 1.8 million since April 2009. (See table 4.)

Over the 12 months ending in February, the quits rate (not seasonally adjusted) was little changed for total nonfarm, total private, and government as well as in almost every industry and region. (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 level was little changed in February for total nonfarm (1.8 million), total private (1.7 million), and government (110,000). Although little changed over the month, the number of layoffs and discharges has trended downward since peaking in January 2009 for total nonfarm and total private and since June 2009 for government. (See table B below.)

The layoffs and discharges rate (not seasonally adjusted) fell over the 12 months ending in February for total nonfarm and total private, and was little changed for government. The layoffs and discharges rate fell over the year in many industries and in 3 of the 4 regions—Midwest, South, and West. (See table 9.)

The other separations series is not seasonally adjusted. In February, there were 283,000 other separations for total nonfarm, 247,000 for total private, and 36,000 for government. Compared to February 2009, 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 quits had exceeded the proportion of layoffs and discharges every month from the beginning of the series in December 2000 until November 2008 when layoffs and discharges became the larger contributor to total separations. In April 2009, the proportion of quits hit a low of 39 percent and began to rise, while the proportion of layoffs and discharges hit a high of 56 percent and began to fall. In February 2010, the relative contribution reversed again with the proportion of quits (47 percent) slightly exceeding the proportion of layoffs and discharges (46 percent). (See tables 3 and 4, and table B above.)

Net Change in Employment

Over the 12 months ending in February, hires totaled 48.3 million and separations totaled 51.5 million, yielding a net employment loss of 3.2 million.