Job Openings and Labor Turnover: December 2013

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 December, little changed from November, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) and separations rate (3.0 percent) also were little changed in December. 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 December was 3.6 million, little changed from November. (See table 1.) The number of openings decreased in retail trade and was little changed in all remaining industries and in all four regions in December. The level of total nonfarm job openings was 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 December (not seasonally adjusted) was little changed over the year for total nonfarm, total private, and government. Job openings increased over the year for retail trade, real estate and rental and leasing, educational services, and health care and social assistance but decreased in mining and logging and in professional and business services. The Midwest region experienced an increase in job openings over the 12 months ending in December. (See table 7.)

Hires

In December, the hires rate was little changed at 3.1 percent. The hires rate decreased in construction and in professional and business services. The hires rate was little changed in all four regions. (See table 2.) The number of hires in December was 4.2 million, up from 3.7 million at the end of the recession in June 2009.

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 little changed in all industries and in all regions over the 12 months ending in December. (See table 8.)

Separations

The total separations figure includes quits, layoffs and discharges, and other separations. Total separations also is 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 December, the quits rate was unchanged at 1.6 percent. The quits rate was unchanged for total private and little changed for government. (See table 4.) The number of quits was 2.2 million in December compared to 1.8 million at the end of the recession in June 2009.

The number of quits (not seasonally adjusted) was essentially unchanged over the 12 months ending in December for total nonfarm, total private, and government. The quits level increased over the year in accommodation and food services and in the South. (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 December at 1.2 percent. The rate was essentially unchanged for total private, government, and all four regions. (See table 5.) The number of layoffs and discharges for total nonfarm was 1.6 million in December, down from 2.1 million at the end of the recession in June 2009.

The layoffs and discharges level (not seasonally adjusted) was essentially unchanged for total nonfarm, total private, and government over the 12 months ending in December 2012. Over the year, the number of layoffs and discharges rose in mining and logging and in retail trade but fell in professional and business services. The number of layoffs and discharges decreased over the year in the South. (See table 11.)

In December, there were 345,000 other separations for total nonfarm, unchanged 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 December 2012, hires totaled 51.8 million and separations totaled 50.0 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.