Job Openings and Labor Turnover: January 2021

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 changed little at 6.9 million on the last business day of January, the U.S. Bureau of Labor Statistics reported today. Hires were little changed at 5.3 million while total separations decreased to 5.3 million. Within separations, the quits rate and layoffs and discharges rate changed little at 2.3 percent and 1.2 percent, respectively. 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. The release also includes 2020 annual estimates for hires and separations. The annual number of hires at 73.1 million and the annual number of layoffs and discharges at 41.0 million increased in 2020. The annual number of quits at 36.3 million decreased in 2020.

Job Openings

On the last business day of January, the number and rate of job openings were little changed at 6.9 million and 4.6 percent, respectively. Job openings increased in state and local government education (+56,000); educational services (+21,000); and mining and logging (+10,000). The number of job openings was little changed in all four regions. (See table 1.)

Over the year, the number of job openings (not seasonally adjusted) was little changed in January. Job openings decreased in a number of industries over the year with the largest decreases in accommodation and food services; state and local government, excluding education; and arts, entertainment, and recreation. The job openings level increased over the year in nondurable goods manufacturing; durable goods manufacturing; and mining and logging. The number of job openings decreased in the West region. (See table 7.)

Hires

In January, the number and rate of hires were little changed at 5.3 million and 3.7 percent, respectively. Hires increased in arts, entertainment, and recreation (+59,000) and in educational services (+25,000). Hires decreased in federal government (-15,000). The number of hires decreased in the South region. (See table 2.)

The number of hires in January (not seasonally adjusted) decreased over the year (-696,000). Hires decreased in a number of industries with the largest decreases in accommodation and food services; professional and business services; and health care and social assistance. The number of hires decreased in the South and West regions. (See table 8.)

Separations

Total separations includes quits, layoffs and discharges, and other separations. 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 January, the number of total separations decreased to 5.3 million (-275,000), and the total separations rate was little changed at 3.7 percent. The total separations level decreased in accommodation and food services (-242,000); educational services (-38,000); and state and local government education (-27,000). Total separations increased in transportation, warehousing, and utilities (+87,000) and in federal government (+9,000). Total separations were little changed in all four regions. (See table 3.)

Over the year, the number of total separations (not seasonally adjusted) decreased (-403,000). Total separations decreased in a number of industries with the largest decreases in professional and business services; state and local government education; and educational services. Total separations increased in transportation, warehousing, and utilities and in federal government. The number of total separations decreased in the South and Midwest regions. (See table 9.)

In January, the quits level and rate were little changed at 3.3 million and 2.3 percent, respectively. The number of quits increased in finance and insurance (+36,000) and in federal government (+5,000). The number of quits decreased in wholesale trade (-28,000); educational services (-18,000); and state and local government education (-14,000). 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 (-239,000). Quits decreased in a number of industries with the largest decreases in professional and business services; state and local government education; and educational services. Quits increased in a number of industries with the largest increases in durable goods manufacturing; finance and insurance; and nondurable goods manufacturing. The number of quits decreased in the West region. (See table 10.)

In January, the number and rate of layoffs and discharges were little changed at 1.7 million and 1.2 percent, respectively. The number of layoffs and discharges decreased in accommodation and food services (-209,000). The number of layoffs and discharges increased in transportation, warehousing, and utilities (+113,000) and in federal government (+5,000). Layoffs and discharges were little changed in all four regions. (See table 5.)

Over the year, the layoffs and discharges level (not seasonally adjusted) was little changed. The number of layoffs and discharges decreased in a number of industries with the largest decreases in professional and business services; durable goods manufacturing; and finance and insurance. Layoffs and discharges increased in transportation, warehousing, and utilities; wholesale trade; and federal government. The number of layoffs and discharges increased in the West region but decreased in the Midwest region. (See table 11.)

The number of other separations edged down in January to 310,000 (-42,000). Other separations decreased in a number of industries with the largest decreases in retail trade (-21,000); state and local government education (-9,000); and transportation, warehousing, and utilities (-8,000). Other separations increased in health care and social assistance (+17,000). The other separations level decreased in the South region but increased in the West region. (See table 6.)

Over the year, the other separations level (not seasonally adjusted) decreased (-67,000). Other separations decreased in a number of industries with the largest decreases in retail trade; accommodation and food services; and state and local government education. The number of other separations increased in federal government. The number of other separations decreased in the South region. (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 January, hires totaled 72.4 million and separations totaled 81.2 million, yielding a net employment loss of 8.8 million. These totals include workers who may have been hired and separated more than once during the year.

Annual Levels and Rates

Consistent with BLS practice, annual estimates are published for not seasonally adjusted data and are published with the January news release each year. Annual estimates are not calculated for job openings because job openings are a stock, or point-in-time, measurement for the last business day of each month. Calculating annual levels and rates allows additional comparisons across years. Annual levels for hires, quits, layoffs and discharges, other separations, and total separations are the sum of the 12 revised monthly levels. Annual rates are computed by dividing the annual level by the Current Employment Statistics (CES) annual average employment level, and multiplying that quotient by 100.

In 2020, there were 73.1 million hires, an increase of 3.1 million from 2019. Total separations increased by 13.5 million in 2020 to 81.5 million. Quits decreased for the first time in 11 years to 36.3 million in 2020, down by 5.8 million. Quits comprised 44.6 percent of total separations. Layoffs and discharges increased by 19.2 million in 2020 to 41.0 million and comprised 50.3 percent of total separations. Other separations increased by 162,000 in 2020 to 4.2 million and comprised 5.1 percent of total separations. These data reflect the effects of the coronavirus (COVID-19) pandemic and efforts to contain it. (See tables 13 through 22.)

The annual hires rate for 2020 was 51.4 percent of the annual average CES employment level. The annual total separations rate for 2020 was 57.3 percent. The annual rates for the components of total separations were 25.5 percent for quits, 28.8 percent for layoffs and discharges, and 2.9 percent for other separations. (See tables 13 through 22.)

(p) Preliminary NOTE: Data have been revised to incorporate the annual updates to the Current Employment Statistics employment estimates and the JOLTS seasonal adjustment factors.

Revisions to Job Openings and Labor Turnover Data

The JOLTS data are revised annually to reflect updates to the Current Employment Statistics (CES) employment estimates. The JOLTS employment levels (not published) are ratio-adjusted to the CES employment levels, and the resulting ratios are applied to all JOLTS data elements. This annual benchmarking process results in revisions to both the seasonally adjusted and not seasonally adjusted JOLTS data series. The seasonally adjusted data are recalculated for the most recent 5 years in order to reflect updated seasonal adjustment factors. Further, the alignment methodology creates a dependency of the not seasonally adjusted estimates on the seasonal adjustment process. Therefore, the data series that are not seasonally adjusted are also recalculated for the most recent 5 years in order to reflect the effect of the updated seasonal adjustment factors on the alignment process.

Tables B through G below present revised total nonfarm data for January through December 2020. The December 2020 revisions also reflect the routine incorporation of additional sample receipts into the final December estimates. Tables presenting revisions to total nonfarm data for January 2016 through December 2020 will be available on the JOLTS website later in the day following the release. The website also contains all revised seasonally adjusted and not seasonally adjusted data. The revision tables and data can be accessed through the JOLTS homepage at www.bls.gov/jlt/.

As of January 2021, all JOLTS data series will be seasonally adjusted. Not seasonally adjusted series that were previously designated as equal to the seasonally adjusted series have been revised back to December 2000.