Thursday, November 13, 2014

Job Openings and Labor Turnover Summary – September, 2014



JOB OPENINGS AND LABOR TURNOVER – SEPTEMBER 2014



Workforce on the move as Quits and Hires increase while discharges remain constant. Construction Quits and Hires cool just a bit from August, 2014, but still up from this same time last year.

There were 4.7 million job openings on the last business day of September, little changed from 4.9  million in August, the U.S. Bureau of Labor Statistics reported today. Hires (5.0 million) and separations (4.8 million) increased in September. Within separations, the quits rate (2.0 percent) increased and the layoffs and discharges rate (1.2 percent) was unchanged. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.


Job Openings

There were 4.7 million job openings on the last business day of September. The job openings rate was 3.3 percent. The number of job openings was little changed for total private and government in September. (See table 1.) The level of job openings decreased for arts, entertainment, and recreation. The job openings level was little changed in all four regions.

The number of job openings (not seasonally adjusted) increased over the 12 months ending in
September for total nonfarm, total private, and government. The job openings level increased over the year for many industries, including both professional and business services and health care and social assistance. The number of openings also increased over the year in all four regions. (See table 7.)

Hires

The hires level increased to 5.0 million in September, up from 4.7 million in August. This was the highest level of hires since December 2007. The hires rate in September was 3.6 percent. The number of hires increased for total private and was little changed for government. Hires increased over the month in health care and social assistance as well as in the Midwest region. (See table 2.)

Over the 12 months ending in September, the number of hires (not seasonally adjusted) increased for total nonfarm, total private, and government. The hires level increased over the year in many industries, including both professional and business services and health care and social assistance. The level decreased for real estate and rental and leasing. The number of hires increased in the Midwest and West 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 include separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

There were 4.8 million total separations in September, up from 4.5 million in August. The separations rate was 3.4 percent. The number of total separations increased for total private and was little changed for government. (See table 3.)

The number of quits increased from 2.5 million in August to 2.8 million in September. This was the highest level of quits since April 2008. The quits rate in September was 2.0 percent. The number of quits increased for total private and government. The quits level increased in professional and business services, health care and social assistance, and state and local government. Quits increased in the Midwest region. (See table 4.)

The quits level (not seasonally adjusted) increased over the 12 months ending in September for total nonfarm, total private, and government. Over the year, the number of quits increased for many industries, including health care and social assistance, and accommodation and food services. The number of quits also increased over the year in all four regions. (See table 10.)

The number of layoffs and discharges was little changed in September at 1.6 million and at the rate of 1.2 percent. The number of layoffs and discharges was little changed over the month for total private, government, and in all four regions. (See table 5.) Seasonally adjusted estimates of layoffs and discharges are not available for individual industries.

The layoffs and discharges level (not seasonally adjusted) was little changed over the 12 months
ending in September for total nonfarm and total private, and decreased for government. The number of layoffs and discharges decreased for several industries, including arts, entertainment, and recreation and in accommodation and food services. The number of layoffs and discharges was little changed over the year in all four regions. (See table 11.)

In September, there were 388,000 other separations for total nonfarm, little changed from August.

Over the month, the number of other separations was little changed for total private at 324,000 and for government at 64,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in September, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, total private, and government. (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 September 2014, hires totaled 56.6 million and separations totaled 54.0 million, yielding a net employment gain of 2.6 million. These figures include workers who may have been hired and separated more than once during the year.

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