Job Openings and Labor Turnover: August 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 3.2 million job openings on the last business day of August 2010, the U.S. Bureau of Labor Statistics reported today. The job openings rate was unchanged over the month at 2.4 percent. The hires rate (3.2 percent) and the separations rate (3.2 percent) were little changed. 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 in August was 3.2 million, which was little changed from July. Although the month-to-month change is small, the number of job openings has risen by 863,000 (37 percent) since the most recent series trough of 2.3 million in July 2009. (See table 1.) This trough immediately followed the end of the recession in June 2009 (as designated by the National Bureau of Economic Research). Even with the gains since July 2009, the number of job openings remained below the 4.4 million jobs open when the recession began in December 2007.

The number of job openings in August (not seasonally adjusted) increased from 12 months earlier for total nonfarm and total private. Over that period, the job openings level decreased in educational services but increased in many other industries and in all of the regions. (See table 5.)

Hires In August, the hires rate was little changed for total nonfarm at 3.2 percent. There were 4.1 million hires during the month for total nonfarm, 280,000 (7 percent) higher than its most recent trough in June 2009. This trough coincided with the official end of the recession. Hires remain below the 5.0 million hires in December 2007 when the recession began. The hires level in August was little changed for all industries and regions. (See table 2.)

Over the 12 months ending in August, the hires rate (not seasonally adjusted) was little changed for total nonfarm, total private, and government. The hires rate increased over the past 12 months in mining and logging and in construction. The rate decreased in real estate and rental and leasing as well as in health care and social assistance. (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 in August was little changed for total nonfarm and total private but decreased for government. Over the 12 months ending in August, the total separations rate (not seasonally adjusted) was little changed for total nonfarm and total private but increased for government. (See tables 3 and 7.)

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. In August, the quits rate remained unchanged at 1.5 percent for total nonfarm and 1.7 percent for total private and was little changed in every industry and region. (See table 4.) The number of quits for total nonfarm fell by 1.4 million between the November 2006 peak and the September 2009 trough. Since September 2009, the number of quits has risen by 282,000.

Over the 12 months ending in August, the quits rate (not seasonally adjusted) increased for total nonfarm and total private, and was little changed for government. The quits rate increased over the 12 months ending in August in nondurable goods manufacturing, professional and business services, and other services as well as in the Northeast and Midwest regions. (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 decreased in August for total nonfarm, total private, and government. The number of layoffs and discharges for total nonfarm peaked at 2.6 million in January 2009, falling to 1.8 million in August 2010. In government, the number of layoffs and discharges in August (236,000) was higher than when the recession began in December 2007 (117,000) due, in part, to the release of temporary Census 2010 workers in August. (See table B below.)

The layoffs and discharges level (not seasonally adjusted) declined over the 12 months ending in August for total nonfarm and total private but increased for government. The layoffs and discharges level increased over the year in federal government reflecting, in part, the layoffs of temporary Census 2010 workers. In many industries, the layoffs and discharges level declined. The layoffs and discharges level decreased over the year in the Midwest and West regions. (See table 9.)

The other separations series is not seasonally adjusted. In August, there were 367,000 other separations for total nonfarm, 289,000 for total private, and 78,000 for government. Compared to August 2009, the number of other separations was little changed for total nonfarm and total private but increased for government. The rise in government other separations is due to an increase in state and local government. (See table 10.)

Relative Contributions to Separations 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, but for the majority of the months since the series began in December 2000, the proportion of quits has exceeded the proportion of layoffs and discharges. Other separations is historically a very small portion of total separations; it has rarely been above 10 percent of the total.

Since February 2010, the proportions of quits and layoffs and discharges at the total nonfarm level have been close. In August 2010, the proportion of quits was 48 percent and the proportion of layoffs and discharges was 44 percent for total nonfarm. For total private, the proportions were 50 percent quits and 42 percent layoffs and discharges. For government, the proportions were 28 percent quits and 57 percent layoffs and discharges. (See table C below.)

Net Change in Employment Over the 12 months ending in August, hires totaled 50.2 million and separations totaled 50.1 million, yielding a net employment gain of 0.1 million.