Job Openings and Labor Turnover: October 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 October, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were also little changed at 5.1 million and 4.9 million, respectively. Within separations, the quits rate was unchanged at 2.1 percent and the layoffs and discharges rate was also unchanged at 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 October, there were 5.5 million job openings, little changed from September. The job openings rate was 3.7 percent in October. The number of job openings was little changed for total private and for government. Job openings increased in health care and social assistance (+139,000). Job openings decreased in professional and business services (-187,000), federal government (-13,000), and mining and logging (-8,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was essentially unchanged at 5.1 million in October. The hires rate was 3.5 percent. The number of hires was little changed for total private and for government. Hires decreased in state and local government education (-26,000) and was little changed in all other industries. The number of hires was little changed in all four 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 October, little changed from September. The total separations rate in October was 3.4 percent. The number of total separations was little changed for total private and decreased for government (-39,000). Total separations decreased in state and local government education (-26,000), information (-20,000), and federal government (-7,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was little changed in October 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 decreased for government (-26,000). Quits decreased in information (-18,000) and state and local government, excluding education (-16,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.5 million layoffs and discharges in October, essentially unchanged from September. The layoffs and discharges rate was unchanged at 1.0 percent in October. The number of layoffs and discharges was little changed for total private and for government. The layoffs and discharges level increased in health care and social assistance (+46,000) but decreased in state and local education (-18,000). The number of layoffs and discharges was little changed in all four regions. (See table 5.)

In October, the number of other separations was little changed for total nonfarm, total private, and government. Other separations increased in retail trade (+20,000) but decreased in federal government (-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 October, hires totaled 62.6 million and separations totaled 60.1 million, yielding a net employment gain of 2.5 million. These totals include workers who may have been hired and separated more than once during the year.