Job Openings and Labor Turnover: August 2012

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 3.6 million job openings on the last business day of August, essentially unchanged from July, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.3 percent) and separations rate (3.3 percent) were little changed in August. 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 3.6 million, essentially unchanged from July. (See table 1.) The number of openings was little changed in all industries except accommodation and food services, where the number decreased. The number of openings was also little changed in all four regions in August. The level of total nonfarm job openings in August was up from 2.4 million at the end of the recession in June 2009. (Recession dates are determined by the National Bureau of Economic Research.)

The number of job openings in August (not seasonally adjusted) increased over the year for total nonfarm and total private, and was little changed for government. Job openings increased over the year for nondurable goods manufacturing, wholesale trade, finance and insurance, and federal government, but fell in mining and logging. The Northeast and South regions experienced a rise in job openings over the year. (See table 7.)

Hires

In August, the hires rate was little changed at 3.3 percent. The hires rate also was little changed in all industries and regions. (See table 2.) The number of hires in August was 4.4 million, up from 3.7 million at the end of the recession in June 2009.

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 was up for finance and insurance and little changed in all other industries and all four regions. (See table 8.) Separations

The total separations figure includes quits, layoffs and discharges, and other separations. Total separations is also referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

In August, the total separations rate was essentially unchanged for total nonfarm and total private, and unchanged for government. (See table 3.) Over the year, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm and total private but rose for government. (See table 9.)

In August, the quits rate was unchanged for total nonfarm, total private, and government. (See table 4.) The number of quits was 2.1 million in August, up from 1.8 million at the end of the recession in June 2009.

The number of quits (not seasonally adjusted) in August was little changed over the year for total nonfarm and total private but rose for government. Quits also increased over the year in several industries and in the Northeast. (See table 10.)

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels and for the four regions. The layoffs and discharges rate rose in August for total nonfarm and total private but was unchanged for government. The layoffs and discharges rate increased in the South in August. (See table 5.) The number of layoffs and discharges for total nonfarm was 1.8 million in August, down from 2.1 million at the end of the recession in June 2009.

The layoffs and discharges level (not seasonally adjusted) was little changed for total nonfarm, total private, and government over the 12 months ending in August 2012. Two industries experienced increases in layoffs and discharges over the year, while one reported a decrease. The number of layoffs and discharges was essentially unchanged over the year in all four regions. (See table 11.)

In August, there were 365,000 other separations for total nonfarm, little changed from the previous month but up over the year. (See tables 6 and 12.)

Net Change in Employment

Large numbers of hires and separations occur every month throughout the business cycle. Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining. Conversely, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising. Over the 12 months ending in August 2012, hires totaled 51.6 million and separations totaled 49.8 million, yielding a net employment gain of 1.8 million. These figures include workers who may have been hired and separated more than once during the year.