Job Openings and Labor Turnover: January 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 3.7 million job openings on the last business day of January, little changed from December, 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 January. 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. The release also includes 2012 annual estimates for hires and separations. The annual levels for hires and quits increased in 2012 while the annual total for layoffs and discharges was about the same as in 2011.

Job Openings

The number of job openings in January was 3.7 million, little changed from December. (See table 1.) The number of openings rose in professional and business services but decreased in health care and social assistance; the number was little changed in all remaining industries and in all four regions in January.

The number of job openings in January (not seasonally adjusted) was up over the year for total nonfarm, total private, and government. Job openings increased over the year for retail trade, other services, and federal government, but decreased in mining and logging. The Northeast and West regions experienced an increase in job openings over the year. (See table 7.)

Hires

In January, the hires rate was unchanged at 3.1 percent. The hires rate was little changed in all industries and in all regions over the month. (See table 2.)

Over the 12 months ending in January, the hires rate (not seasonally adjusted) was unchanged for total nonfarm, total private, and government. The hires rate decreased in mining and logging and in arts, entertainment, and recreation. The hires rate was little changed in all four regions. (See table 8.)

Separations

Total separations 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 January, the quits rate was unchanged at 1.6 percent. The quits rate edged up for total private in January but was unchanged for government. (See table 4.)

The number of quits (not seasonally adjusted) rose over the 12 months ending in January for total nonfarm and total private but remained the same for government. The quits level increased over the year in construction, finance and insurance, health care and social assistance, and accommodation and food services. The quits level also increased over the year in the Midwest and West 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 January at 1.1 percent. The rate was little changed for total private, government, and all four regions. (See table 5.)

The layoffs and discharges level (not seasonally adjusted) was little changed for total nonfarm, total private, and government over the 12 months ending in January 2013. Over the year, the number of layoffs and discharges rose in transportation, warehousing, and utilities and in professional and business services but fell in construction, educational services, and accommodation and food services. The number of layoffs and discharges decreased over the year in the Midwest. (See table 11.)

In January, there were 376,000 other separations for total nonfarm, little changed from the previous month. The number of other separations for total private and government was also little changed. Over the 12 months ending in January, the number of other separations rose for total nonfarm, total private, and government. (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 January 2013, hires totaled 52.0 million and separations totaled 50.0 million, yielding a net employment gain of 2.0 million. These figures include workers who may have been hired and separated more than once during the year.

Annual Levels and Rates

This release contains the 2012 annual levels and rates for hires, total separations, quits, layoffs and discharges, and other separations. Note that annual figures for job openings are not calculated because job openings are measured on a stock, or point-in- time, basis rather than on a flow basis over a specified time period. The annual figures and additional tables are published with the release of January data each year. (See the Technical Note for additional information on these measures.)

Calculating annual levels and rates allows additional comparisons across years. In 2012, annual levels for hires, quits, and other separations rose for the third year in a row. The layoffs and discharges annual level was steady in 2012 after decreasing in 2011 and 2010.

In 2012, annual hires increased to 52.0 million (38.9 percent of employment) and annual total separations rose to 49.7 million (37.1 percent of employment). Annual quits increased to 25.1 million (18.8 percent of employment) in 2012. Annual layoffs and discharges held steady in 2012 at 20.5 million (15.4 percent of employment). Annual other separations edged up in 2012 to 4.0 million (3.0 percent of employment). (See tables 13 through 22.)

Revisions to Job Openings and Labor Turnover Data

In accordance with annual practice, the Job Openings and Labor Turnover Survey (JOLTS) data have been revised to reflect annual updates to the Current Employment Statistics (CES), or establishment survey, employment estimates. The JOLTS employment levels (not published) are ratio-adjusted to the CES employment levels, and the resulting ratios are applied to all JOLTS data elements. This annual benchmark process resulted in revisions to all not seasonally adjusted JOLTS data series from April 2011 forward, the time period since the last benchmark was established. Additionally, the seasonally adjusted JOLTS data series have been recalculated from January 2008 forward to reflect updated seasonal adjustment factors. Further, the methodology incorporated in 2009 to more closely align the hires and separations estimates with the monthly payroll employment change created a dependency of the not seasonally adjusted estimates on the seasonal adjustment process. Therefore, the not seasonally adjusted data series have been recalculated from January 2008 forward to reflect the updated seasonal adjustment factors’ effect on the alignment process.

Tables B through G below present revised total nonfarm data for January through December 2012. The December 2012 revisions also reflect the routine incorporation of additional sample receipts into the final December estimates. Tables presenting revisions to total nonfarm data for 2008 through 2011 will be available later today on the JOLTS website. The website also contains all revised seasonally adjusted and not seasonally adjusted data. The revision tables and data can be accessed through the JOLTS homepage at http://www.bls.gov/jlt/.