Job Openings and Labor Turnover: October 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 6.7 million on the last business day of October, the U.S. Bureau of Labor Statistics reported today. Hires were little changed at 5.8 million while total separations increased to 5.1 million. Within separations, the quits rate was unchanged at 2.2 percent while the layoffs and discharges rate increased to 1.2 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 October, the number and rate of job openings were little changed at 6.7 million and 4.5 percent, respectively. Job openings increased in health care and social assistance (+122,000) and state and local government education (+23,000). The number of job openings was little changed in all four regions. (See table 1.)

The number of job openings in October (not seasonally adjusted) decreased over the year to 7.1 million (-596,000) reflecting the continued impact of the COVID-19 pandemic on the labor market. Job openings decreased in a number of industries with the largest decreases in retail trade, accommodation and food services, and finance and insurance. Only nondurable goods manufacturing and durable goods manufacturing had increases in job openings. The number of job openings decreased in the Midwest region. (See table 7.)

Hires

In October, the number and rate of hires were little changed at 5.8 million and 4.1 percent, respectively. Hires decreased in wholesale trade (-81,000), other services (-74,000), and federal government (-12,000). The number of hires was little changed in all four regions. (See table 2.)

The number of hires in October (not seasonally adjusted) was little changed over the year. Hires increased in a number of industries over the year, with the largest increases in transportation, warehousing, and utilities and in durable goods manufacturing. Hires decreased in construction and 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 October, the number of total separations increased to 5.1 million (+263,000). The total separations rate was little changed at 3.6 percent. The total separations level increased in federal government (+109,000), largely the result of separations of temporary 2020 Census workers. Total separations increased in the Northeast region. (See table 3.)

Over the year, the number of total separations (not seasonally adjusted) decreased to 5.3 million (-408,000). Total separations decreased in a number of industries with the largest decreases in accommodation and food services and construction. Total separations increased in federal government and nondurable goods manufacturing. The number of total separations decreased in the West region. (See table 9.)

In October, the number of quits was little changed at 3.1 million and the quits rate was unchanged at 2.2 percent. Quits increased in arts, entertainment, and recreation (+17,000) and federal government (+7,000). 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 (-261,000). Quits declined in several industries, with the largest decreases in accommodation and food services and other services. The quits level increased in a number of industries with the largest increases in retail trade and wholesale trade. 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 increased to 1.7 million (+243,000) and 1.2 percent, respectively in October. The number of layoffs and discharges increased in federal government (+91,000), largely due to the release of temporary 2020 Census workers. Layoffs and discharges increased in the Northeast region. (See table 5.)

Over the year, the layoffs and discharges level (not seasonally adjusted) was little changed. Layoffs and discharges decreased in arts, entertainment, and recreation and in wholesale trade. The number of layoffs and discharges increased in federal government. The number of layoffs and discharges decreased over the year in the West region. (See table 11.)

The number of other separations was little changed in October at 336,000. Other separations increased in federal government (+10,000). 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 321,000. Other separations decreased in a number of industries with the largest decrease in information. Other separations increased 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.

Over the 12 months ending in October, hires totaled 70.4 million and separations totaled 76.1 million, yielding a net employment loss of 5.7 million. These totals include workers who may have been hired and separated more than once during the year.