Tuesday, March 10, 2015

Job Openings and Labor Turnover – January, 2015: New Hires down while Quits are up.



JOB OPENINGS AND LABOR TURNOVER – JANUARY 2015

There were 5.0 million job openings on the last business day of January, little changed from 4.9 million in December, the U.S. Bureau of Labor Statistics reported today. Hires decreased to 5.0 million in January and separations were little changed at 4.8 million. Within separations, the quits rate was little changed at 2.0 percent and the layoffs and discharges rate was unchanged at 1.2 percent. 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. The release also includes 2014 annual estimates for hires and separations. The annual number of hires, quits, layoffs and discharges, and other separations increased in 2014.


Job Openings

There were 5.0 million job openings on the last business day of January, little changed from December. This was the highest level of job openings since January 2001. The job openings rate for January was 3.4 percent. The number of job openings was little changed for total private and government in January. Job openings increased for accommodation and food services and in the West region. (See table 1.)

The number of job openings (not seasonally adjusted) increased over the 12 months ending in January for total nonfarm, total private, and government. Job openings increased over the year for many industries including professional and business services, health care and social assistance, and accommodation and food services. Job openings decreased over the year in mining and logging. The number of openings increased over the year in all four regions. (See table 7.)

Hires

There were 5.0 million hires in January, down from December. The hires rate in January was 3.5
percent. The number of hires decreased for total private in January and was little changed in
government. Hires decreased over the month in construction and in the Northeast region. (See table 2.)

Over the 12 months ending in January, the number of hires (not seasonally adjusted) increased for total nonfarm and total private, and was little changed for government. Hires increased over the year in retail trade and in finance and insurance. Hires decreased over the year in educational services. In the regions, hires increased over the year in the Midwest. (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 January, little changed from December. The separations rate was 3.4 percent. The number of total separations was little changed for total private and government, and in all four regions. (See table 3.)

There were 2.8 million quits in January, little changed from December. The quits rate in January was 2.0 percent. The number of quits was little changed for total private and unchanged for government over the month. Quits increased in January in professional and business services and in health care and social assistance. The number of quits increased in the Midwest region. (See table 4.)

The number of quits (not seasonally adjusted) increased over the 12 months ending in January for total nonfarm and total private and was little changed for government. Over the year, quits increased for several industries, including the professional and business services and the accommodation and food services industries. The number of quits increased over the year in all four regions. (See table 10.)

There were 1.7 million layoffs and discharges in January, little changed from December. The layoffs and discharges rate was 1.2 percent. The number of layoffs and discharges was little changed over the month for total private and government, and in all four regions. (See table 5.) Seasonally adjusted estimates of layoffs and discharges are not available for individual industries.

The number of layoffs and discharges (not seasonally adjusted) was little changed over the 12 months ending in January for total nonfarm, total private, and government. The number of layoffs and discharges increased in mining and logging, construction, and federal government. The number decreased over the year in finance and insurance; educational services; and health care and social assistance. Layoffs and discharges was little changed in all four regions. (See table 11.)

In January, there were 354,000 other separations for total nonfarm, a decrease from December. Over the month, the number of other separations decreased for total private to 287,000 and was little changed for government at 67,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in January, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, total private, and government. Other separations increased over the year in retail trade and educational services. The number decreased in wholesale trade, information, and federal government. Other separations increased in the West region but decreased in the Midwest 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 2015, hires totaled 59.1 million and separations totaled 56.0 million, yielding a net employment gain of 3.1 million. These figures include workers who may have been hired and separated more than once during the year.

Annual Levels and Rates

This release contains the 2014 annual levels and rates for hires, total separations, quits, layoffs and discharges, and other separations. Note that annual figures for job openings are not calculated because job openings are measured on a stock, or point-in-time, basis rather than on a flow basis over a specified time period. The annual figures and additional tables are published with the release of January data each year. (See the Technical Note for additional information on these measures.)

Calculating annual levels and rates allows additional comparisons across years. In 2014, annual levels for hires, quits, and other separations rose for the fourth consecutive year. The layoffs and discharges annual level rose in 2014 after declining in 2013.

In 2014, annual hires increased to 58.7 million (42.2 percent of employment) and annual total
separations rose to 55.5 million (39.9 percent of employment). Annual quits increased to 30.5 million (22.0 percent of employment) in 2014. Annual layoffs and discharges increased in 2014 to 20.4 million (14.7 percent of employment). Annual other separations rose in 2014 to 4.6 million (3.3 percent of employment). (See tables 13 through 22.)
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The Job Openings and Labor Turnover Survey results for February 2015 are scheduled to be
released on Tuesday, April 7, 2015 at 10:00 a.m. (EDT).





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