Job Openings and Labor Turnover: May 2011

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 3.0 million job openings on the last business day of May, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) and separations rate (3.1 percent) were again 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 by geographic region.

Job Openings The number of job openings in May was 3.0 million, unchanged from April. (See table 1.) The number of job openings in May was 862,000 higher than in July 2009 (the series trough) but remains well below the 4.4 million openings when the recession began in December 2007.

The number of job openings in May (not seasonally adjusted) rose over the last 12 months for total private as the number of job openings rose in durable goods manufacturing; transportation, warehousing, and utilities; information; and healthcare and social assistance. The level decreased over the year for federal government due largely to a drop in the number of temporary workers needed to conduct the 2010 Census. (See table 5.)

Hires In May, the hires rate was unchanged at 3.1 percent for total nonfarm. The hires rate was also essentially unchanged for all industries and regions. (See table 2.) At 4.1 million in May, the number of hires is up from 3.6 million in October 2009 (the series trough) but remains below the 5.0 million hires when the recession began in December 2007.

Over the past 12 months, the hires rate (not seasonally adjusted) showed no significant over-the-year increase in any industry or region. The hires rate fell in federal government and in the West. (See table 6.)

Separations The total separations figure includes voluntary quits, involuntary layoffs and discharges, and other separations, including retirements. Total separations is also referred to as turnover.

The seasonally adjusted total separations rate was essentially unchanged in May for total nonfarm (3.1 percent) and government (1.3 percent); the rate increased for total private (to 3.5 percent). (See table 3.) Over the year, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm, total private, and government. (See table 7.)

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. In May, the quits rate was essentially unchanged for total nonfarm (1.5 percent), total private (1.7 percent), and government (0.6 percent). (See table 4.) Although the number of quits rose from 1.5 million in January 2010 (the most recent trough) to 2.0 million in May 2011, the number remained below the 2.8 million quits when the recession began in December 2007.

The number of quits (not seasonally adjusted) in May 2011 was higher than 12 months earlier for total nonfarm, total private, and government. Several industries experienced a rise in the number of quits over the year, and federal government experienced a decline. In the regions, the number of quits rose in the South but was little changed in the other three regions. (See table 8.)

The layoffs and discharges component of total separations is seasonally adjusted only at the total nonfarm, total private, and government levels. The layoffs and discharges rate was little changed in May for total nonfarm, total private, and government. The number of layoffs and discharges for total nonfarm was 1.8 million in May, up slightly from the recent low point of 1.5 million in January 2011, but still well below the peak of 2.5 million in February 2009. (See table B below.)

The layoffs and discharges level (not seasonally adjusted) was essentially unchanged over the 12 months ending in May for total nonfarm and total private. The level decreased over the year for federal government, returning to a more typical level after a large number of layoffs in May 2010 of temporary Census workers. The number of layoffs and discharges was steady in the regions. (See table 9.)

The other separations series is not seasonally adjusted. In May, there were 302,000 other separations for total nonfarm, 234,000 for total private, and 68,000 for government. Compared to May 2010, 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 attributable to the individual components has varied over time at the total nonfarm level, 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 total separations.

The proportions of quits and layoffs and discharges were last equal in November 2010. Since then, the proportion of quits has trended upward, again exceeding the proportion of layoffs and discharges, which has trended downward. In May, the proportion of quits for total nonfarm was 49 percent and the proportion of layoffs and discharges was 44 percent. The proportions were similar for total private with 50 percent quits and 44 percent layoffs and discharges. For government, the proportions were 41 percent quits and 38 percent layoffs and discharges. (See table C below.)

Net Change in Employment Over the 12 months ending in May, not seasonally adjusted data totaled 47.5 million hires and 46.7 million separations, yielding a net employment gain of 0.7 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.