Job Openings and Labor Turnover: December 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 December, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were also little changed at 5.3 million and 5.0 million, respectively. Within separations, the quits rate was little changed at 2.0 percent and the layoffs and discharges rate was unchanged at 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 December, there were 5.5 million job openings, little changed from November. The job openings rate was 3.6 percent in December. The number of job openings was little changed for total private and decreased for government (-75,000). Job openings increased in other services (+50,000) and federal government (+13,000) but decreased in state and local government, excluding education (-85,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was essentially unchanged at 5.3 million in December. The hires rate was 3.6 percent. The number of hires was little changed for total private and decreased for government (-38,000). Hires decreased in state and local government, excluding education (-33,000), and in mining and logging (-7,000). 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 5.0 million total separations in December, little changed from November. The total separations rate in December was 3.4 percent. The number of total separations was little changed for total private and decreased for government (-37,000). Total separations decreased in state and local government education (-28,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was little changed in December at 3.0 million. The quits rate was 2.0 percent. Over the month, the number of quits was little changed for total private and for government. Quits decreased in state and local government education (-14,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.6 million layoffs and discharges in December, essentially unchanged from November. The layoffs and discharges rate was 1.1 percent in December. The number of layoffs and discharges was little changed for total private and decreased for government (-27,000). The layoffs and discharges level increased in construction (+75,000) but decreased in health care and social assistance (-46,000), state and local government, excluding education (-15,000), and state and local government education (-12,000). Layoffs and discharges were little changed in all four regions. (See table 5.)

In December, the number of other separations was little changed for total nonfarm, total private, and government as well as in all industries and 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 December, hires totaled 62.5 million and separations totaled 60.1 million, yielding a net employment gain of 2.4 million. These totals include workers who may have been hired and separated more than once during the year.