Job Openings and Labor Turnover: July 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 increased to a series high of 10.9 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Hires and total separations were little changed at 6.7 million and 5.8 million, respectively. Within separations, the quits rate was unchanged at 2.7 percent while the layoffs and discharges rate was little changed at 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, by four geographic regions, and by establishment size class.

Job Openings

On the last business day of July, the number and rate of job openings increased to series highs of 10.9 million (+749,000) and 6.9 percent, respectively. Job openings increased in several industries, with the largest increases in health care and social assistance (+294,000); finance and insurance (+116,000); and accommodation and food services (+115,000). The number of job openings increased in the Northeast, South, and West regions. (See table 1.)

Hires

In July, the number and rate of hires were little changed at 6.7 million and 4.5 percent, respectively. Hires decreased in retail trade (-277,000), durable goods manufacturing (-41,000), and educational services (-23,000). The number of hires increased in state and local government education (+33,000) and in federal government (+21,000). The number of hires was little changed in all four regions. (See table 2.)

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 July, the number and rate of total separations were little changed at 5.8 million and 3.9 percent, respectively. The total separations level decreased in transportation, warehousing, and utilities (-43,000) and in federal government (-9,000). Total separations increased in the Northeast region. (See table 3.)

The number of quits was little changed in July at 4.0 million. The quits rate was unchanged at 2.7 percent. Quits increased in wholesale trade (+34,000) and in state and local government education (+14,000). Quits decreased in transportation, warehousing, and utilities (-25,000) and in federal government (-5,000). The number of quits was little changed in all four regions. (See table 4.)

In July, the number and rate of layoffs and discharges were little changed at 1.5 million and 1.0 percent, respectively. Layoffs and discharges increased in professional and business services (+107,000). Layoffs and discharges were little changed in all four regions. (See table 5.)

The number of other separations was little changed in July at 350,000. Other separations decreased in health care and social assistance (-16,000), information (-6,000), and real estate and rental and leasing (-5,000). The other separations level decreased in the West region. (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 July, hires totaled 72.6 million and separations totaled 65.6 million, yielding a net employment gain of 7.0 million. These totals include workers who may have been hired and separated more than once during the year.

Establishment Size Class

In July, the job openings rate increased in medium establishments with 50-249 employees and decreased in large establishments with 5,000 or more employees. The hires rate decreased in large establishments with 5,000 or more employees. The total separations rate decreased in large establishments with 5,000 or more employees. The other separations rate decreased in large establishments with 250-999 employees and 1,000-4,999 employees. For a more in-depth description of the JOLTS establishment size class estimates, please visit www.bls.gov/jlt/sizeclassmethodology.htm.