Job Openings and Labor Turnover: September 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 September, essentially unchanged from August, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) was little changed while the separations rate (3.0 percent) declined in September. 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 September was 3.6 million, essentially unchanged from August. (See table 1.) The number of openings was little changed in all industries except government and professional and business services, where the number decreased. The number of openings was also little changed in all four regions in September. The level of total nonfarm job openings in September 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 September (not seasonally adjusted) was essentially unchanged over the year for total nonfarm, total private, and government. Job openings increased over the year for nondurable goods manufacturing, finance and insurance, real estate and rental and leasing, health care and social assistance, and federal government, but fell in mining and logging, durable goods manufacturing, and state and local government. The Midwest region experienced a rise in job openings over the year. (See table 7.)

Hires

In September, the hires rate was little changed at 3.1 percent. The hires rate was also little changed in all industries except state and local government, where it declined. The Midwest region experienced a decline in hires for September. (See table 2.) The number of hires in September was 4.2 million, up from 3.7 million at the end of the recession in June 2009.

Over the 12 months ending in September, the hires rate (not seasonally adjusted) was little changed for total nonfarm, total private, and government. The hires rate was little changed in all industries. The rate decreased in the Midwest and West 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 September, the total separations rate decreased for total nonfarm and was little changed for total private and government. (See table 3.) Over the year, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm and total private but fell for government. (See table 9.)

In September, the quits rate was little changed for total nonfarm, total private, and government. (See table 4.) The number of quits was 2.0 million in September compared to 1.8 million at the end of the recession in June 2009.

The number of quits (not seasonally adjusted) was little changed over the 12 months ending in September for total nonfarm, total private, and government. Quits decreased over the year in arts, entertainment, and recreation. Quits levels were essentially unchanged over the year for all regions. (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 was little changed in September for total nonfarm, total private, government, and all four regions. (See table 5.) The number of layoffs and discharges for total nonfarm was 1.7 million in September 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 and total private, but decreased for government over the 12 months ending in September 2012. Over the year, layoffs and discharges declined in arts, entertainment, and recreation and in state and local government. Layoffs and discharges were essentially unchanged over the year in all four regions. (See table 11.)

In September, there were 347,000 other separations for total nonfarm, little changed from the previous month. The number of other separations was little changed 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 September 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.