Job Openings and Labor Turnover: April 2018

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 6.7 million on the last business day of April, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were little changed at 5.6 million and 5.4 million, respectively. Within separations, the quits rate was unchanged at 2.3 percent and the layoffs and discharges rate increased to 1.2 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 April, the job openings level was little changed but reached a new series high of 6.7 million. The series began in December 2000. The job openings rate was 4.3 percent in April 2018. The number of job openings was little changed for total private and for government. Job openings increased in durable goods manufacturing (+33,000) and information (+26,000) but decreased in finance and insurance (-84,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was little changed at 5.6 million in April. The hires rate was 3.8 percent. Hires for total private and for government were little changed. The number of hires was little changed in all industries and 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.

The number of total separations was little changed at 5.4 million in April. The total separations rate was 3.6 percent. The number of total separations was little changed for total private and for government. Total separations increased in state and local government education (+20,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was little changed at 3.4 million in April. The quits rate was 2.3 percent. The number of quits was little changed for total private and increased for government (+17,000). Quits increased in state and local government education (+14,000) but decreased in arts, entertainment, and recreation (-25,000). The number of quits was little changed in all four regions (See table 4.)

The number of layoffs and discharges edged up to 1.7 million in April. The layoffs and discharges rate increased to 1.2 percent over the month. The number of layoffs and discharges edged up for total private and was little changed for government. Layoffs and discharges increased in arts, entertainment, and recreation (+51,000) and in finance and insurance (+27,000). The number of layoffs and discharges was little changed in all four regions. (See table 5.)

The number of other separations was little changed in April at 347,000. The number of other separations was little changed for total private and unchanged for government. Other separations was little changed in all 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 April, hires totaled 66.1 million and separations totaled 63.7 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.