Job Openings and Labor Turnover: December 2015

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.

The number of job openings increased to 5.6 million on the last business day of December, the U.S. Bureau of Labor Statistics reported today. Hires and separations were little changed at 5.4 million and 5.1 million, respectively. Within separations, the quits rate was 2.1 percent, and the layoffs and discharges rate was 1.1 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.

Job Openings

Job openings rose to 5.6 million in December. The job openings rate was 3.8 percent. The number of job openings increased in December for total private and was little changed for government. Job openings increased in construction (+69,000), nondurable goods manufacturing (+60,000), and durable goods manufacturing (+26,000). In the regions, job openings increased in the West over the month. (See table 1.)

The number of job openings (not seasonally adjusted) increased over the 12 months ending in December for total nonfarm and total private, and edged up for government. Job openings rose in several industries over the year with the largest changes in health care and social assistance (+172,000) and finance and insurance (+99,000). The number of job openings increased over the year in the Northeast, Midwest, and West regions. (See table 7.)

Hires

The number of hires was 5.4 million in December, little changed from November. The number of hires is now higher than in December 2007 (5.0 million), the first month of the recession. The hires rate was 3.7 percent in December 2015. The number of hires was little changed for total private and government in December. The number of hires edged up in professional and business services and was little changed in all other industries and in the regions. (See table 2.)

Over the 12 months ending in December, the number of hires (not seasonally adjusted) was little changed for total nonfarm and total private and edged up for government. At the industry level, hires increased in accommodation and food services (+93,000); transportation, warehousing, and utilities (+43,000); and federal government (+11,000). Hires edged down in construction. The number of hires was little changed in all four regions over the year. (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 includes separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

There were 5.1 million total separations in December, little changed from November. The total separations rate was 3.5 percent. The number of total separations was little changed for total private and government. In December, total separations edged up in accommodation and food services and in state and local government. The number of total separations was little changed in all four regions. (See table 3.)

There were 3.1 million quits in December, up from November. The number of quits is now higher than in December 2007 (2.8 million), the first month of the recession. The quits rate was 2.1 percent in December 2015. The number of quits rose for total private and government over the month. Quits rose in state and local government (+20,000) but fell in nondurable goods manufacturing (-25,000). Quits increased in the South region over the month. (See table 4.)

The number of quits (not seasonally adjusted) increased over the 12 months ending in December for total nonfarm, total private, and government. Quits increased over the year in several industries with the largest changes occurring in professional and business services (+102,000), accommodation and food services (+68,000), and retail trade (+58,000). In the regions, quits rose in the South and Midwest. (See table 10.)

There were 1.6 million layoffs and discharges in December, little changed from November. The layoffs and discharges rate was 1.1 percent. The number of layoffs and discharges was little changed over the month for total private and unchanged for government. Layoffs and discharges was little changed in all four regions. (See table 5.) Seasonally adjusted estimates of layoffs and discharges are not available for individual industries.

The number of layoffs and discharges (not seasonally adjusted) decreased over the 12 months ending in December for total nonfarm and total private and edged up for government. The number of layoffs and discharges rose in mining and logging (+7,000) and fell in construction (-129,000) and retail trade (-64,000). The number of layoffs and discharges was little changed in all four regions over the year. (See table 11.)

In December, there were 411,000 other separations for total nonfarm, little changed from November. Over the month, the number of other separations was little changed for total private at 343,000 and for government at 68,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in December, the number of other separations (not seasonally adjusted) fell for total nonfarm and total private and was little changed for government. Other separations increased over the year in federal government (+7,000). Other separations decreased in the South region over the year. (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 December 2015, hires totaled 61.4 million and separations totaled 58.8 million, yielding a net employment gain of 2.6 million. These totals include workers who may have been hired and separated more than once during the year.