Job Openings and Labor Turnover: February 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 5.7 million on the last business day of February, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were also little changed at 5.3 million and 5.1 million, respectively. Within separations, the quits rate was little changed at 2.1 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 February, there were 5.7 million job openings, little changed from January. The job openings rate was 3.8 percent in February. The number of job openings was little changed for total private and for government. Job openings increased in a number of industries, with the largest changes occurring in health care and social assistance (+73,000), accommodation and food services (+66,000), and finance and insurance (+47,000). Job openings decreased in real estate and rental and leasing (-63,000) and mining and logging (-7,000). Job openings increased in the Northeast region. (See table 1.)

Hires

The number of hires was essentially unchanged at 5.3 million in February. The hires rate was 3.6 percent. The number of hires was little changed for total private and for government. Hires increased in retail trade (+74,000) and mining and logging (+9,000), but decreased in federal government (-13,000). 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 5.1 million total separations in February, little changed from January. The total separations rate in February was 3.5 percent. The number of total separations was little changed for total private and for government. Total separations decreased in health care and social assistance (-54,000), educational services (-22,000), and federal government (-6,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was essentially unchanged at 3.1 million in February. The quits rate was 2.1 percent. The number of quits was little changed for total private and for government. Quits increased in transportation, warehousing, and utilities (+25,000) and mining and logging (+5,000). The number of quits decreased in health care and social assistance (-53,000), wholesale trade (-34,000), and finance and insurance (-22,000). In the regions, the number of quits decreased in the West. (See table 4.)

There were 1.6 million layoffs and discharges in February, little changed from January. The layoffs and discharges rate was 1.1 percent in February. The number of layoffs and discharges was little changed for total private and for government. The layoffs and discharges level increased in retail trade (+57,000) and state and local government education (+12,000). The number of layoffs and discharges decreased in transportation, warehousing, and utilities (-44,000), educational services (-15,000), and federal government (-3,000). Layoffs and discharges decreased in the Midwest region. (See table 5.)

In February, the number of other separations was little changed for total nonfarm, total private, and government. Other separations increased in accommodation and food services (+15,000) and state and local government education (+6,000), but decreased in information (-7,000) and educational services (-4,000). The number of other separations was little changed 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 February, hires totaled 63.0 million and separations totaled 60.6 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.