Job Openings and Labor Turnover: July 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 6.9 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were little changed at 5.7 million and 5.5 million, respectively. Within separations, the quits rate was little changed at 2.4 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 July, the job openings level was little changed but reached a new series high of 6.9 million. The job openings rate was 4.4 percent. The number of job openings was little changed for total private and for government. Job openings increased in finance and insurance (+46,000) and nondurable goods manufacturing (+32,000) but decreased in retail trade (-85,000), educational services (-34,000), and federal government (-19,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was little changed at 5.7 million in July. The hires rate was 3.8 percent. The number of hires was little changed for total private and for government. Hires decreased in finance and insurance (-36,000). 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.

The number of total separations was little changed at 5.5 million in July. The total separations rate was 3.7 percent. The number of total separations was little changed for total private and for government. Total separations increased in educational services (+26,000) but decreased in arts, entertainment, and recreation (-43,000). Total separations was little changed in all four regions. (See table 3.)

The number of quits was little changed in July at 3.6 million. The quits rate was 2.4 percent. The number of quits edged up for total private (+109,000) and was little changed for government. Quits increased in accommodation and food services (+61,000), other services (+49,000), and educational services (+12,000). The number of quits was little changed in all four regions. (See table 4.)

The number of layoffs and discharges was little changed at 1.6 million in July. The layoffs and discharges rate was 1.1 percent. The number of layoffs and discharges was little changed for total private and for government. Layoffs and discharges increased in retail trade (+53,000) but decreased in arts, entertainment, and recreation (-40,000). 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 July at 349,000. The other separations level was little changed for total private and for government. Other separations were little changed in all industries. The number of other separations decreased in the Northeast region. (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 July, hires totaled 66.7 million and separations totaled 64.2 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.