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The number of job openings was little changed at 6.5 million on the last business day of August, the U.S. Bureau of Labor Statistics reported today. Hires were little changed at 5.9 million in August. Total separations decreased to 4.6 million. Within separations, the quits rate was little changed at 2.0 percent while the layoffs and discharges rate decreased to a series low of 1.0 percent. 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 August, the number and rate of job openings were little changed at 6.5 million and 4.4 percent, respectively. Over the month, the number of job openings edged down for total private (-242,000) and was little changed for government. Job openings decreased in construction (-68,000), and information (-25,000). The number of job openings decreased in the Midwest region. (See table 1.)
The number of job openings in August (not seasonally adjusted) decreased over the year to 6.6 million (-685,000) reflecting the continued impact of the COVID-19 pandemic on the labor market. Job openings increased over the year for federal government reflecting recruitment efforts related to the 2020 Census. Nondurable goods manufacturing job openings also grew since August 2019. Job openings decreased in a number of industries with the largest decreases in accommodation and food services and in transportation, warehousing, and utilities. The number of job openings decreased in all four regions. (See table 7.)
Hires
In August, the number and rate of hires were little changed at 5.9 million and 4.2 percent, respectively. Hires increased in federal government (+246,000), largely because of temporary 2020 Census hiring. Hires also increased in durable goods manufacturing (+41,000). Hires decreased in accommodation and food services (-177,000), health care and social assistance (-73,000), and real estate and rental and leasing (-28,000). The number of hires was little changed in all four regions. (See table 2.)
The number of hires in August (not seasonally adjusted) was little changed over the year. Hires increased in a number of industries over the year, with the largest increases in federal government and retail trade. Hires decreased in accommodation and food services and in state and local government education. The number of hires was little changed in all four regions. (See table 8.)
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 August, the number and rate of total separations decreased to 4.6 million (-394,000) and 3.3 percent, respectively. Total separations decreased in other services (-80,000) and in arts, entertainment, and recreation (-56,000). The number of total separations increased in federal government (+13,000). Total separations decreased in the West region. (See table 3.)
Over the year, the number of total separations (not seasonally adjusted) decreased to 5.5 million (-1,248,000). Total separations decreased in a number of industries with the largest decreases in accommodation and food services and in professional and business services. Total separations increased in federal government. The number of total separations decreased in all four regions. (See table 9.)
In August, the number of quits edged down to 2.8 million (-139,000) and the quits rate was 2.0 percent. Quits decreased in a number of industries with the largest decreases in other services (-48,000), construction (-40,000), and arts, entertainment, and recreation (-18,000). The number of quits increased in finance and insurance (+36,000). The number of quits decreased in the Midwest region. (See table 4.)
Over the year, the number of quits (not seasonally adjusted) decreased to 3.6 million (-838,000). Quits declined in several industries, with the largest decreases in accommodation and food services and in professional and business services. Over the year, the number of quits decreased in all four regions. (See table 10.)
The number and rate of layoffs and discharges decreased to series lows of 1.5 million (-272,000) and 1.0 percent, respectively in August. Layoffs and discharges decreased in a few industries, with the largest decreases in professional and business services (-95,000), accommodation and food services (-62,000), and durable goods manufacturing (-42,000). The number of layoffs and discharges increased in federal government (+12,000). The number of layoffs and discharges decreased in the South and West regions. (See table 5.)
Over the year, the layoffs and discharges level (not seasonally adjusted) decreased to 1.6 million (-418,000). Layoffs and discharges decreased in a number of industries with the largest decreases in professional and business services and in other services. The number of layoffs and discharges increased in health care and social assistance and in federal government. The number of layoffs and discharges decreased over the year in the Northeast and South regions. (See table 11.)
The number of other separations was little changed in August at 328,000. Other separations decreased in transportation, warehousing, and utilities (-17,000) and nondurable goods manufacturing (-5,000). Other separations increased in other services (+13,000). Other separations was little changed in all four regions. (See table 6.)
Over the year, the other separations level (not seasonally adjusted) was little changed at 350,000. Other separations increased in other services and federal government. The number of other separations decreased in wholesale trade. The number of other separations was little changed in all four regions. (See table 12.)
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.
Source: U.S. Bureau of Labor Statistics · Original release Oct 6, 2020.
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