Job Openings and Labor Turnover: July 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 July, little changed from June, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.2 percent) and separations rate (3.0 percent) also were little changed in July. 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 July was 3.7 million, little changed from June. (See table 1.) The number of job openings was little changed in July in all industries and regions except professional and business services where the level dropped.

The number of job openings in July (not seasonally adjusted) was little changed over the year for total nonfarm, total private, and government. Increases in job openings in several industries were offset by decreases in job openings in several other industries, leading to little change at the total nonfarm level. In the Midwest region, the number of job openings rose over the year. (See table 7.)

Hires

The number of hires in July was 4.4 million, essentially unchanged from June. The number of hires also was little changed for total private and government. Over the month, the hires level increased for health care and social assistance. The number of hires was little changed in all four regions. (See table 2.)

Over the 12 months ending in July, the number of hires (not seasonally adjusted) was little changed for total nonfarm and government but rose for total private. The number of hires increased over the year in finance and insurance, professional and business services, and federal government. The hires level rose over the year in the South. (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 July, little changed from June. The number of total separations for total private also was little changed while the number fell in government, reflecting a decline in state and local government over the month.

In July, the quits rates were essentially unchanged at 1.7 percent for total nonfarm, 1.9 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) rose over the 12 months ending in July for total nonfarm and total private but was little changed for government. The number of quits rose in finance and insurance, professional and business services, and health care and social assistance. The rise in these three industries was partially offset by a decline in the number of quits in mining and logging and wholesale trade. The Midwest had a rise in the number of quits over the year but there was little change in the other three regions. (See table 10.)

The layoffs and discharges rate was essentially unchanged in July at 1.1 percent. The rates were little changed over the month for total private (1.2 percent) and government (0.4 percent). The rate was little changed in July for all four regions. Seasonally adjusted estimates of layoffs and discharges are not available for individual industries. (See table 5.)

The layoffs and discharges level (not seasonally adjusted) was little changed over the 12 months ending in July for total nonfarm, total private, and government. Over the year, the number of layoffs and discharges decreased in construction. The level was essentially unchanged in all four regions. (See table 11.)

In July, there were 328,000 other separations for total nonfarm, a decline from June. The number of other separations decreased over the month for total private and government. Seasonally adjusted estimates of other separations are not available for individual industries or regions. (See table 6.) Over the 12 months ending in July, the number of other separations was little changed for total nonfarm and total private but decreased 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 July 2013, hires totaled 52.1 million and separations totaled 50.2 million, yielding a net employment gain of 1.9 million. These figures include workers who may have been hired and separated more than once during the year.