Job Openings and Labor Turnover: July 2019

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 7.2 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Over the month, hires edged up to 6.0 million and separations increased to 5.8 million. Within separations, the quits rate and the layoffs and discharges rate were little changed at 2.4 percent and 1.2 percent, respectively. 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 at 7.2 million. The job openings rate was 4.5 percent. The number of job openings was little changed for total private and for government. The job openings level decreased in wholesale trade (-55,000) and in federal government (-11,000). The job openings level increased in information (+42,000) and in mining and logging (+11,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires edged up to 6.0 million (+237,000) in July. The hires rate was 3.9 percent. The number of hires edged up for total private (+219,000) and was little changed for government. The hires level was little changed in all industries. 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 rose to 5.8 million (+246,000) in July. The total separations rate was 3.8 percent. The number of total separations increased for total private (+245,000) and was little changed for government. The total separations level increased in professional and business services (+98,000), transportation, warehousing, and utilities (+42,000), and information (+21,000). The number of total separations increased in the West region. (See table 3.)

The number of quits edged up to a series high in July of 3.6 million (+130,000). The quits rate was 2.4 percent. The quits level edged up for total private (+127,000) and was little changed for government. Quits increased in health care and social assistance (+54,000) and in federal government (+3,000). The number of quits rose in the Midwest region. (See table 4.)

The number of layoffs and discharges was little changed in July at 1.8 million. The layoffs and discharges rate was 1.2 percent. The layoffs and discharges level was little changed for total private and for government. The number of layoffs and discharges increased in information (+20,000). The layoffs and discharges level increased in the West region. (See table 5.)

The number of other separations was little changed in July. The other separations level was also little changed for total private and for government. Other separations decreased in accommodation and food services (-13,000) but increased in transportation, warehousing, and utilities (+11,000). 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 July, hires totaled 69.6 million and separations totaled 67.0 million, yielding a net employment gain of 2.6 million. These totals include workers who may have been hired and separated more than once during the year.