Job Openings and Labor Turnover: January 2017

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 5.6 million on the last business day of January, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were also little changed at 5.4 million and 5.3 million, respectively. Within separations, the quits rate was little changed at 2.2 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. The release also includes 2016 annual estimates for hires and separations. The annual number of hires at 62.7 million in 2016 was essentially the same as in 2015. The annual number of quits at 36.1 million increased in 2016 while the annual number of layoffs and discharges at 19.9 million declined.

Job Openings

On the last business day of January, there were 5.6 million job openings, little changed from December. The job openings rate was 3.7 percent in January. The number of job openings was little changed for total private and for government. Job openings increased in professional and business services (+136,000) and real estate and rental and leasing (+67,000) but decreased in federal government (-37,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was essentially unchanged at 5.4 million in January. The hires rate was 3.7 percent. The number of hires was little changed for total private and for government. Hires increased in other services (+54,000) and finance and insurance (+41,000). 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 5.3 million total separations in January, little changed from December. The total separations rate in January was 3.6 percent. The number of total separations was little changed for total private and for government. Total separations increased in finance and insurance (+39,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits edged up to 3.2 million in January. The quits rate was 2.2 percent. Over the month, the number of quits edged up for total private (+129,000) and was little changed for government. Quits increased in other services (+33,000), finance and insurance (+31,000), and real estate and rental and leasing (+24,000). The number of quits increased in the Midwest (+92,000) and West (+92,000) regions. (See table 4.)

There were 1.6 million layoffs and discharges in January, unchanged from December. The layoffs and discharges rate was 1.1 percent in January. The number of layoffs and discharges was little changed for total private and for government. The layoffs and discharges level increased in accommodation and food services (+69,000), transportation, warehousing, and utilities (+27,000), and mining and logging (+7,000). Layoffs and discharges were little changed in all four regions. (See table 5.)

In January, the number of other separations was little changed for total nonfarm, total private, and government. Other separations increased in health care and social assistance (+29,000) and nondurable goods manufacturing (+5,000) but decreased in federal government (-3,000). Other separations increased in the South region (+37,000) and was little changed in the other 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 January, hires totaled 63.1 million and separations totaled 60.7 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.

Annual Levels and Rates

This release contains the 2016 annual levels and rates for hires, total separations, quits, layoffs and discharges, and other separations. Note that annual figures for job openings are not calculated because job openings are measured on a stock, or point-in-time, basis rather than on a flow basis over a specified time period. The annual figures and additional tables are published with the release of January data each year. (See the Technical Note for additional information on these measures.)

Calculating annual levels and rates allows additional comparisons across years. In 2016, the annual level of hires was 62.7 million (43.5 percent of employment), essentially the same as in 2015. Quits rose for the seventh consecutive year reaching 36.1 million in 2016 (25.0 percent of employment). The layoffs and discharges annual level declined in 2016 to 19.9 million (13.8 percent of employment) after edging up the past 2 years. The annual level for other separations declined in 2016 to 4.4 million (3.1 percent of employment); the decline is the first since 2009. The annual level for total separations (the sum of quits, layoffs and discharges, and other separations) rose in 2016 for the sixth consecutive year, reaching 60.4 million (41.9 percent of employment). (See tables 13 through 22.)

(1) No regular seasonal movements could be identified in the job openings series, therefore, the seasonally adjusted and not seasonally adjusted data are identical. (p) Preliminary NOTE: Data have been revised to incorporate the annual updates to the Current Employment Statistics employment estimates and the JOLTS seasonal adjustment factors.

Revisions to Job Openings and Labor Turnover Data

In accordance with annual practice, the Job Openings and Labor Turnover Survey (JOLTS) data have been revised to reflect annual updates to the Current Employment Statistics (CES), or establishment survey, employment estimates. The JOLTS employment levels (not published) are ratio adjusted to the CES employment levels, and the resulting ratios are applied to all JOLTS data elements. The result is the revision of 21 months of not seasonally adjusted data. Additionally, new seasonal factors have been developed based on the full revised JOLTS series and have been applied to the data from January 2012 forward.

Tables B through G below present revised total nonfarm data for January through December 2016. The December 2016 revisions also reflect the routine incorporation of additional sample receipts into the final December estimates. Tables presenting revisions to total nonfarm data for January 2012 through December 2015 will be available later today on the JOLTS website. The website also contains all revised seasonally adjusted and not seasonally adjusted data. The revision tables and data can be accessed through the JOLTS homepage at www.bls.gov/jlt/.