Job Openings and Labor Turnover: August 2016

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 decreased to 5.4 million on the last business day of August, the U.S. Bureau of Labor Statistics reported today. Hires and separations were little changed at 5.2 million and 5.0 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

On the last business day of August, there were 5.4 million job openings, a decrease of 388,000 from July. The job openings rate was 3.6 percent in August. The number of job openings decreased over the month for total private (-348,000) and for government (-39,000). Job openings decreased in a number of industries, with the largest changes occurring in professional and business services (-223,000), durable goods manufacturing (-29,000), and arts, entertainment, and recreation (-28,000). In the regions, job openings decreased in the South and the Midwest. (See table 1.)

Hires

The number of hires was 5.2 million in August, little changed from July. The hires rate was 3.6 percent in August. The number of hires was little changed for total private and for government. Hires was also little changed in all industries and regions. (See table 2.)

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, disability, and transfers to other locations of the same firm.

There were 5.0 million total separations in August, little changed from July. The total separations rate in August was 3.4 percent. The number of total separations was essentially unchanged for total private and for government. Total separations increased in state and local government education (+23,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was essentially unchanged in August at 3.0 million. The quits rate was 2.1 percent. Over the month, the number of quits was little changed for total private and for government. Quits decreased in state and local government, excluding education (-13,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.6 million layoffs and discharges in August, little changed from July. The layoffs and discharges rate was 1.1 percent. The number of layoffs and discharges was essentially unchanged over the month for total private and edged up for government (+22,000). The layoffs and discharges level increased in healthcare and social assistance (+39,000) and in state and local government education (+14,000). The number of layoffs and discharges was little changed in all four regions. (See table 5.)

In August, the number of other separations was little changed for total nonfarm and total private and was unchanged for government. Other separations was little changed in all industries. The number of other separations decreased over the month in the West region. (See table 6.)

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, hires totaled 62.7 million and separations totaled 60.1 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.