Job Openings and Labor Turnover: September 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 was little changed at 5.5 million on the last business day of September, the U.S. Bureau of Labor Statistics reported today. Hires edged down to 5.1 million and total separations was little changed at 4.9 million. Within separations, the quits rate was unchanged at 2.1 percent and the layoffs and discharges rate decreased to 1.0 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 September, there were 5.5 million job openings, little changed from August. The job openings rate was 3.7 percent in September. The number of job openings was little changed for total private and for government. Job openings was also little changed in all industries and regions. (See table 1.)

Hires

The number of hires edged down to 5.1 million in September (-187,000). The hires rate was 3.5 percent. The number of hires was little changed for total private and for government. Hires decreased in arts, entertainment, and recreation (-63,000) and was little changed in all other industries. The number of hires decreased in the Northeast region (-108,000) and was little changed in all other 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 4.9 million total separations in September, little changed from August. The total separations rate in September was 3.4 percent. The number of total separations was essentially unchanged for total private and for government. Total separations increased in transportation, warehousing, and utilities (+50,000) and decreased in arts, entertainment, and recreation (-55,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was little changed in September at 3.1 million. The quits rate was 2.1 percent. Over the month, the number of quits was little changed for total private, and increased for government (+36,000). Quits increased in transportation, warehousing, and utilities (+43,000), state and local government, excluding education (+25,000), information (+15,000), and state and local government education (+10,000). Quits decreased in other services (-37,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.5 million layoffs and discharges in September, a decrease of 218,000 from August. The layoffs and discharges rate decreased to 1.0 percent. The number of layoffs and discharges decreased for total private (-186,000) and for government (-31,000). The layoffs and discharges level decreased in health care and social assistance (-61,000), arts, entertainment, and recreation (-60,000), state and local government education (-23,000), and mining and logging (-5,000). The number of layoffs and discharges decreased in the South region (-105,000). (See table 5.)

In September, the number of other separations was little changed for total nonfarm, total private, and government. Other separations decreased in mining and logging (-3,000). The number of other separations was little changed in all other industries and in all four regions. (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 September, 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.