Job Openings and Labor Turnover: August 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 August, little changed from July, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.3 percent) and separations rate (3.2 percent) also were little changed in August. 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 August was 3.9 million, little changed from July. (See table 1.) The number of job openings rose in August in three industries and declined in state and local government. Job openings were up in the Northeast region.

The number of job openings in August (not seasonally adjusted) rose over the year for total nonfarm and total private but fell for government. Job openings levels increased in several industries and decreased in information. In the Midwest region, the number of job openings rose over the year. (See table 7.)

Hires

The number of hires in August was 4.5 million, essentially unchanged from July. The number of hires also was little changed for total private and government. Over the month, the number of hires was little changed in all industries and in all four regions. (See table 2.)

Over the 12 months ending in August, the number of hires (not seasonally adjusted) was little changed for total nonfarm and total private but fell in government. The number of hires increased over the year in retail trade and in educational services and decreased in state and local government. The hires level was little changed in all regions. (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 4.4 million total separations in August, little changed from July. The number of total separations for total private and government also was little changed.

In August, the quits rates were essentially unchanged at 1.7 percent for total nonfarm, 2.0 percent for total private, and 0.6 percent for government. The quits rate increased over the month for retail trade and was little changed in all other industries and in all regions. (See table 4.)

The quits rate (not seasonally adjusted) rose over the 12 months ending in August for total nonfarm and total private but was unchanged for government. The quits rate was up in several industries and was down in mining and logging and in durable goods manufacturing. The quits rate increased over the year in the West region. (See table 10.)

The layoffs and discharges rate was unchanged in August at 1.2 percent. The rates also were little changed over the month for total private (1.4 percent) and government (0.4 percent). The rate rose in August for the Midwest region. Seasonally adjusted estimates of layoffs and discharges are not available for individual industries. (See table 5.)

The layoffs and discharges rate (not seasonally adjusted) was little changed over the 12 months ending in August for total nonfarm, total private, and government. Over the year, the layoffs and discharges rate increased in educational services and decreased in federal government and in state and local government. The rate decreased in the South region. (See table 11.)

In August, there were 363,000 other separations for total nonfarm, about the same as in July. The number of other separations also was essentially unchanged 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 August, the number of other separations was little changed for total nonfarm, total private, and 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 August 2013, hires totaled 52.3 million and separations totaled 50.4 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.