Job Openings and Labor Turnover: August 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 3.1 million job openings on the last business day of August, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) and separations rate (3.0 percent) were essentially unchanged over the month. The job openings rate has trended upward slowly since the end of the recession in June 2009 (as determined by the National Bureau of Economic Research). This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by geographic region.

Job Openings

The number of job openings in August was 3.1 million, little changed from July. (See table 1.) Although the number of job openings remained below the 4.4 million openings when the recession began in December 2007, the level in August was 944,000 higher than in July 2009 (the most recent trough). The number of job openings is up 26 percent since the end of the recession in June 2009.

The number of job openings in August (not seasonally adjusted) increased over the year for total private and was essentially unchanged for total nonfarm and government. Several industries experienced an increase over the year in the number of job openings; the number of job openings decreased for federal government. The number of job openings rose in the Midwest.

Hires

In August, the hires rate was little changed at 3.1 percent for total nonfarm. The hires rate was also essentially unchanged for all industries and regions. (See table 2.) The number of hires in August was 4.0 million, up from 3.6 million in October 2009 (the most recent trough) but below the 5.0 million hires recorded when the recession began in December 2007. The number of hires has increased 11 percent since the end of the recession in June 2009.

Over the past 12 months, the hires rate (not seasonally adjusted) fell for federal government. The hires rate was essentially unchanged for all other industries and regions. (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 unchanged in August for total nonfarm (3.0 percent) and total private (3.4 percent) and little changed for government (1.3 percent). (See table 3.) Over the year, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm and total private but decreased for government. (See table 7.)

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

The number of quits (not seasonally adjusted) in August 2011 increased from 12 months earlier for total nonfarm and total private and was essentially unchanged for government. Several industries experienced an increase in the number of quits over the year, while federal government experienced a decline. Among the regions, the number of quits rose in the Midwest and South. (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 unchanged in August for total nonfarm, total private, and government. The number of layoffs and discharges for total nonfarm was 1.7 million in August, up slightly from the recent low point of 1.5 million in January 2011, but still below the peak of 2.5 million in February 2009. (See table B.)

The layoffs and discharges level (not seasonally adjusted) declined over the 12 months ending in August 2011 for government. The level decreased over the year for educational services, other services, and for state and local government. The level also decreased over the year for federal government, returning to a more typical level after a large number of layoffs in August 2010 of temporary Census workers. The number of layoffs and discharges was little changed in all four regions over the year. (See table 9.)

The other separations series is not seasonally adjusted. In August 2011, there were 321,000 other separations for total nonfarm, 259,000 for total private, and 62,000 for government. Compared to August 2010, the number of other separations was down for total nonfarm 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. Other separations is historically a very small portion of total separations; it has rarely been above 10 percent of total 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. For the majority of the months between November 2008 and November 2010, however, the proportion of layoffs and discharges was equal to or greater than the proportion of quits. Since November 2010 the series have returned to their historical pattern. In August, the proportion of quits for total nonfarm was 51 percent, and the proportion of layoffs and discharges was 42 percent. (See table C.)

Net Change in Employment

Large numbers of hires and separations occur every month. Over the 12 months ending in August 2011, hires totaled 47.9 million and separations totaled 46.7 million, yielding a net employment gain of 1.2 million based on not seasonally adjusted data. These figures include workers who may have been hired and separated more than once during the year.