Job Openings and Labor Turnover: June 2020

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 increased to 5.9 million on the last business day of June, the U.S. Bureau of Labor Statistics reported today. Hires decreased to 6.7 million in June, but was still the second highest level in the series history. The largest monthly increase in hires occurred in May 2020. Total separations increased to 4.8 million. Within separations, the quits rate rose to 1.9 percent while the layoffs and discharges rate was unchanged at 1.4 percent. These changes in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by four geographic regions.

Job Openings

On the last business day of June, the number of job openings increased to 5.9 million (+518,000) while the rate was little changed at 4.1 percent. Job openings rose in a number of industries with the largest increases in accommodation and food services (+198,000), other services (+69,000), and arts, entertainment, and recreation (+34,000). Job openings decreased in construction (-70,000) and in state and local government education (-26,000). The number of job openings increased in the Northeast and Midwest regions. (See table 1.)

Hires

In June, the number of hires decreased to 6.7 million (-503,000), the second highest level in series history, the series high occurred in May 2020. The June hires rate decreased to 4.9 percent. Hires decreased in a number of industries, with the largest fall in other services (-326,000), followed by health care and social assistance (-282,000), and construction (-181,000). Hires increased in professional and business services (+255,000), accommodation and food services (+78,000), and state and local government, excluding education (+30,000). The number of hires decreased in the West region. (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.

In June, the number and rate of total separations increased to 4.8 million (+522,000) and 3.5 percent, respectively. A year ago, total separations levels and rates were higher at 5.6 million and 3.7 percent in June 2019. Total separations increased in many industries in June 2020 with the largest increases in accommodation and food services (+175,000), retail trade (+103,000), and durable goods manufacturing (+58,000). The number of total separations decreased in state and local government education (-59,000) and federal government (-12,000). Total separations increased in the Northeast and West regions. (See table 3.)

In June, the number and rate of quits increased to 2.6 million (+531,000) and 1.9 percent, respectively. Quits increased in a number of industries with the largest increases in health care and social assistance (+106,000), accommodation and food services (+104,000), and retail trade (+99,000). Quits decreased in state and local government education (-40,000). The number of quits increased in all four regions. (See table 4.)

The number of layoffs and discharges was little changed at 1.9 million and the rate was unchanged at 1.4 percent in June. The rate, which had reached a series high of 7.6 percent in March, declined to 1.4 percent in May, and remains near its pre-pandemic rate of 1.2 percent in February. In June, the layoffs and discharges level decreased in health care and social assistance (-71,000), state and local government, excluding education (-24,000), and federal government (-10,000). Layoffs and discharges increased in accommodation and food services (+70,000) and durable goods manufacturing (+38,000). 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 June. Other separations increased in retail trade (+23,000) and arts, entertainment, and recreation (+3,000). Other separations decreased in state and local government education (-11,000) and educational services (-4,000). 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 June, hires totaled 70.2 million and separations totaled 79.1 million, yielding a net employment loss of 8.9 million. These totals include workers who may have been hired and separated more than once during the year.