Job Openings and Labor Turnover: December 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 3.1 million job openings on the last business day of December, the U.S. Bureau of Labor Statistics reported today. The job openings rate was essentially unchanged over the month at 2.3 percent. Both the hires rate and the separations rate were unchanged at 3.2 percent each in December. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector by industry and by geographic region.

Job Openings The number of job openings in December was 3.1 million, which was little changed from 3.2 million in November. (See table 1.) Since the most recent series trough in July 2009, the level of job openings has risen by 0.7 million, or 31 percent. 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 in December remained 1.3 million below the 4.4 million openings when the recession began in December 2007.

The number of job openings in December 2010 (not seasonally adjusted) increased from 12 months earlier for total nonfarm and total private. The level was little changed over the year for government. Over the year, the job openings level increased in seven industries, decreased in one industry, and was essentially unchanged in the remaining industries. The job openings level increased in the Midwest and West regions. (See table 5.)

Hires In December, the hires rate was unchanged for total nonfarm (3.2 percent), total private (3.6 percent), and government (1.4 percent). The hires rate decreased for retail trade. The hires rate was essentially unchanged for all regions. (See table 2.) There were 4.2 million hires during the month, 9 percent higher than the most recent series trough in June 2009. This trough coincided with the official end of the recession. Despite the gains since June 2009, the number of hires in December remained below the 5.0 million hires when the recession began in December 2007. Since their respective troughs, the hires level has risen at a slower pace than the job openings level.

Over the 12 months ending in December, the hires rate (not seasonally adjusted) was essentially unchanged for total nonfarm, total private, and government. The hires rate was essentially unchanged in all industries and regions. (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 unchanged over the month for total nonfarm, total private, and government. The total separations rate increased for construction and decreased for retail trade. Over the 12 months ending in December, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm, total private, and government; the rate increased for construction and state and local government and decreased for federal government. (See tables 3 and 7.)

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. In December, the quits rate remained unchanged for total nonfarm (1.5 percent), total private (1.7 percent), and government (0.5 percent) and there was little or no change in every industry and region. (See table 4.) The number of quits in December (2.0 million) was higher than the series trough in September 2009 (1.7 million), but it was still well below the series peak in November 2006 (3.2 million).

Over the 12 months ending in December, the quits rate (not seasonally adjusted) was essentially unchanged for total nonfarm and government but increased for total private. The quits rate increased for manufacturing, professional and business services, and information, and remained essentially unchanged for the remaining industries and all 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 was essentially unchanged in December for total nonfarm, total private, and government. The number of layoffs and discharges for total nonfarm peaked at 2.6 million in January 2009, then fell to 1.8 million in December 2010. (See table B below.)

The layoffs and discharges level (not seasonally adjusted) was essentially unchanged over the 12 months ending in December for total nonfarm. The level decreased for total private. The layoffs and discharges level increased in construction over the year. The level declined over the year in several industries and in the Midwest region. (See table 9.)

The other separations series is not seasonally adjusted. In December, there were 332,000 other separations for total nonfarm, 276,000 for total private, and 56,000 for government. Compared to December 2009, the number of other separations was little changed for total nonfarm, total private, and 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 of layoffs and discharges at the total nonfarm level have been close. In December 2010, the proportion of quits for total nonfarm was 48 percent and the proportion of layoffs and discharges was 44 percent. For total private, the proportions were 49 percent quits and 44 percent layoffs and discharges. For government, the proportions were 33 percent quits and 51 percent layoffs and discharges. (See table C below.)

Net Change in Employment Over the 12 months ending in December, hires (not seasonally adjusted) totaled 51.0 million and separations (not seasonally adjusted) totaled 50.1 million, yielding a net employment gain of 0.9 million. These figures include workers who may have been hired and separated more than once during the year. Nearly half of the hires and nearly half of the separations during these 12 months occurred in three industries: retail trade; professional and business services; and accommodation and food services. The large share of total hires and separations accounted for by these three industries reflects the size of the industries as well as their relatively high hires and separations rates.