Job Openings and Labor Turnover: September 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 was little changed at 6.4 million on the last business day of September, the U.S. Bureau of Labor Statistics reported today. Hires and total separations were little changed at 5.9 million and 4.7 million, respectively. Within separations, the quits rate was little changed at 2.1 percent while the layoffs and discharges rate decreased to a series low of 0.9 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 September, the number of job openings was little changed at 6.4 million. The job openings rate was unchanged at 4.3 percent. Job openings decreased in federal government (-20,000). The number of job openings was little changed in all four regions. (See table 1.) The number of job openings in September (not seasonally adjusted) decreased over the year to 6.6 million (-566,000) reflecting the continued impact of the COVID-19 pandemic on the labor market. Job openings decreased in a number of industries with the largest in accommodation and food services, retail trade, and construction. The number of job openings decreased in the Midwest and West regions. (See table 7.)

Hires

In September, the number and rate of hires were little changed at 5.9 million and 4.1 percent, respectively. Hires decreased in federal government (-256,000), largely due to a drop in demand for temporary 2020 Census workers. Hires also decreased in retail trade (-105,000) and educational services (-23,000). The number of hires increased in accommodation and food services (+137,000), wholesale trade (+73,000), and transportation, warehousing, and utilities (+46,000). The number of hires was little changed in all four regions. (See table 2.)

The number of hires in September (not seasonally adjusted) was little changed over the year. Hires increased in a number of industries over the year, with the largest increases in other services and in transportation, warehousing, and utilities. Hires decreased in state and local government education and in arts, entertainment, and recreation. The number of hires decreased in the South region. (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 September, the number of total separations was little changed at 4.7 million. The total separations rate was unchanged at 3.3 percent. The total separations level increased in other services (+77,000). Total separations also increased in federal government (+31,000), largely the result of temporary 2020 Census workers. Total separations were little changed in all four regions. (See table 3.)

Over the year, the number of total separations (not seasonally adjusted) decreased to 5.0 million (-1.1 million). 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 September, the number of quits increased to 3.0 million (+179,000) and the quits rate was little changed at 2.1 percent. Quits increased in other services (+65,000), construction (+39,000), and arts, entertainment, and recreation (+17,000). The number of quits was little changed in all four regions. (See table 4.)

Over the year, the number of quits (not seasonally adjusted) decreased to 3.3 million (-356,000). Quits declined in several industries, with the largest decreases in accommodation and food services and in arts, entertainment, and recreation. The quits level increased in nondurable goods manufacturing. Over the year, the number of quits decreased in the Midwest and West regions. (See table 10.)

The number and rate of layoffs and discharges decreased to 1.3 million (-200,000) and 0.9 percent, respectively in September. The layoffs and discharges level decreased in construction (-102,000) and wholesale trade (-40,000). The number of layoffs and discharges increased in federal government (+37,000), largely due to the release of temporary 2020 Census workers. Layoffs and discharges were little changed in all four regions. (See table 5.)

Over the year, the layoffs and discharges level (not seasonally adjusted) decreased to 1.4 million (-720,000). Layoffs and discharges decreased in a number of industries with the largest decreases in accommodation and food services and in professional and business services. The number of layoffs and discharges increased in federal government. The number of layoffs and discharges decreased over the year in the Northeast, South, and West regions. (See table 11.)

The number of other separations was little changed in September at 314,000. Other separations decreased in federal government (-5,000) and arts, entertainment, and recreation (-3,000). Other separations were little changed in all four regions. (See table 6.)

Over the year, the other separations level (not seasonally adjusted) was little changed at 298,000. Other separations decreased in federal government. 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.