Job Openings and Labor Turnover: June 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 3.9 million job openings on the last business day of June, little changed from May, 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 June. 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 June was 3.9 million, little changed from May. (See table 1.) The number of job openings was little changed over the month in all industries and regions.

The number of job openings in June (not seasonally adjusted) was little changed over the year for total nonfarm, total private, and government. Although the number of total job openings was little changed over the year, several industries experienced increases and several industries experienced decreases. In the Midwest region, the number of job openings rose over the year. (See table 7.)

Hires

The number of hires in June was 4.2 million, a decrease from May. The number of hires also declined for total private but was little changed for government. Over the month, the hires level decreased for health care and social assistance. In June, the number of hires fell in the Midwest. (See table 2.)

Over the 12 months ending in June, the number of hires (not seasonally adjusted) was little changed for total nonfarm, total private, and government. The number of hires increased in information over the year but fell in durable goods manufacturing and in educational services. The hires level declined over the year in the Midwest. (See table 8.)

Separations

Total separations includes quits, layoffs and discharges, and other separations. Total separations 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.

There were 4.1 million total separations in June, a decrease from May. The number of total separations for total private also decreased while government was little changed over the month.

In June, the quits rate was unchanged at 1.6 percent for total nonfarm, 1.8 percent for total private, and 0.6 percent for government. The quits rate was little changed over the month for all industries and regions. (See table 4.)

The number of quits (not seasonally adjusted) was little changed over the 12 months ending in June for total nonfarm, total private, government, all industries, and all four regions. (See table 10.)

The layoffs and discharges rate decreased in June to 1.1 percent. The rate was little changed over the month for total private at 1.3 percent and government at 0.4 percent. In the Midwest region, the rate declined in June. The layoffs and discharges component of total separations is not seasonally adjusted for individual industries. (See table 5.)

The layoffs and discharges level (not seasonally adjusted) decreased over the 12 months ending in June for total nonfarm and total private but was little changed for government. Over the year, the number of layoffs and discharges increased in information. The layoffs and discharges level fell over the 12 months ending in June for educational services and for health care and social assistance; the level also fell in the Midwest. (See table 11.)

In June, there were 384,000 other separations for total nonfarm, essentially unchanged from the previous month. The number of other separations was little changed over the month for total private and government. The other separations component of total separations is not seasonally adjusted by industry or region. (See table 6.) Over the 12 months ending in June, the number of other separations was little changed for total nonfarm and total private but increased for government. (See table 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 June 2013, hires totaled 51.8 million and separations totaled 49.9 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.