Job Openings and Labor Turnover: January 2022

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 11.3 million on the last business day of January, the U.S. Bureau of Labor Statistics reported today. Hires and total separations were little changed at 6.5 million and 6.1 million, respectively. Within separations, the quits rate decreased to 2.8 percent. The layoffs and discharges rate was little changed at 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, by four geographic regions, and by establishment size class. The release also includes 2021 annual estimates for hires and separations. The annual number of hires and quits in 2021 increased to 75.6 million and 47.8 million, respectively. The annual number of layoffs and discharges decreased to 17.0 million in 2021.

Job Openings

On the last business day of January, the number and rate of job openings were little changed at 11.3 million and 7.0 percent, respectively. Job openings decreased in several industries, with the largest decreases in accommodation and food services (-288,000); transportation, warehousing, and utilities (-132,000); and federal government (-60,000). Job openings increased in other services (+136,000) and in durable goods manufacturing (+85,000). Job openings decreased in the West region. (See table 1.)

Hires

In January, the number of hires was little changed at 6.5 million. The hires rate was unchanged at 4.3 percent. Hires were little changed in all industries. 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 January, the number and rate of total separations were little changed at 6.1 million and 4.0 percent, respectively. Among the industries, total separations decreased for federal government (-13,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits edged down in January to 4.3 million (-151,000). The quits rate decreased to 2.8 percent. Quits decreased in retail trade (-69,000) and in information (-20,000) but increased in finance and insurance (+30,000). The number of quits decreased in the Midwest region. (See table 4.)

In January, the number and rate of layoffs and discharges were little changed at 1.4 million and 0.9 percent, respectively. Layoffs and discharges increased in retail trade (+48,000) and in information (+40,000) but decreased in federal government (-12,000). The number of layoffs and discharges increased in the Northeast region. (See table 5.)

The number of other separations was little changed in January at 391,000. Other separations increased in transportation, warehousing, and utilities (+10,000) and in durable goods manufacturing (+8,000). The other separations level decreased in information (-9,000); state and local government education (-9,000); and in arts, entertainment, and recreation (-3,000). Other separations were little changed in all four regions. (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 January 2022, hires totaled 76.4 million and separations totaled 70.0 million, yielding a net employment gain of 6.4 million. These totals include workers who may have been hired and separated more than once during the year.

Establishment Size Class

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

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 2021, there were 75.6 million hires, an increase of 2.9 million from 2020. Total separations decreased by 11.7 million in 2021 to 69.0 million. Quits increased to a series high of 47.8 million in 2021, a gain of 12.0 million (JOLTS annual estimates are available back to 2001). Quits comprised 69.3 percent of total separations. Layoffs and discharges decreased by 23.8 million in 2021 to a series low of 17.0 million and comprised 24.6 percent of total separations. Other separations increased by 94,000 in 2021 to 4.2 million and comprised 6.1 percent of total separations. (See tables 13 through 22.)

The annual hires rate for 2021 was 51.7 percent, a 0.6 percentage point increase from 2020. The annual total separations rate for 2021 was 47.2 percent, down 9.6 percentage points from the previous year. The annual rates for the components of total separations were 32.7 percent for quits, 11.6 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 2021. The December 2021 revisions also reflect the routine incorporation of additional sample receipts into the final December estimates. Tables presenting revisions to total nonfarm data for January 2017 through December 2021 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/.