Thursday, August 13, 2015

Job Openings and Labor Turnover Summary – June 2015: Construction beings to experience a mobile, transient effect in construction workforce as Hires, Separations and Layoffs increase.



The number of job openings was little changed at 5.2 million on the last business day of June, the U.S. Bureau of Labor Statistics reported today. The number of hires and separations were little changed at 5.2 and 4.9 million, respectively. Within separations, the quits rate remained at 1.9 percent for the third month in a row and the layoffs and discharges rate was little changed at 1.3 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.


Job Openings

Job openings were little changed at 5.2 million on the last business day of June. The job openings rate for June 2015 remained at 3.6 percent for the third month in a row. The number of job openings was little changed for total private and government. Job openings decreased in nondurable goods manufacturing and were little changed in all four regions. (See table 1.)

The number of job openings (not seasonally adjusted) increased over the 12 months ending in June for total nonfarm and total private. The number of job openings for government was little changed. Job openings rose over the year for several industries with the largest increases occurring in professional and business services and in health care and social assistance. Job openings decreased over the year in mining and logging and in finance and insurance. The number of job openings increased over the year in the South and Midwest regions. (See table 7.)

Hires

The number of hires was 5.2 million in June, little changed from May. The hires rate was 3.7 percent. The number of hires was little changed for total private and government in June. There was little change in the number of hires in all industries and regions over the month. (See table 2.)

Over the 12 months ending in June, the number of hires (not seasonally adjusted) increased for total nonfarm, total private, and government. At the industry level, hires increased in construction, other services, and state and local government. Among the industries, the number of hires decreased over the year in mining and logging. The number of hires increased in the Midwest region. (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 includes separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.

There were 4.9 million total separations in June, about the same as in May. The separations rate was 3.5 percent. The number of total separations was little changed for total private and government. Total separations increased in construction. There was little change in all regions over the month. (See table 3.)

There were 2.7 million quits in June, little changed from May. The quits rate in June remained
unchanged at 1.9 percent. The number of quits was little changed for total private and overnment over the month. The quits level was little changed in all industries and in all four regions in June. (See table 4.)

The number of quits (not seasonally adjusted) increased over the 12 months ending in June for total nonfarm, total private, and government. Over the year, quits increased in durable goods manufacturing and in state and local government. The number of quits increased in the Northeast and West regions. (See table 10.)

There were 1.8 million layoffs and discharges in June, about the same as in May. The layoffs and
discharges rate was 1.3 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 June for total nonfarm, total private, and government. The number of layoffs and discharges increased over the year in construction and educational services but decreased in health care and social assistance. There was little change in layoffs and discharges over the year in all four regions. (See table 11.)

In June, there were 392,000 other separations for total nonfarm, about the same as in May. Over the month, the number of other separations was little changed for total private at 334,000 and decreased for government to 57,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in June, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, total private, and government. Other separations increased in professional and business services, health care and social assistance, and accommodation and food services. Other separations decreased in wholesale trade. The number of other separations was little changed in all four regions. (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 June 2015, hires totaled 60.6 million and separations totaled 57.9 million, yielding a net employment gain of 2.7 million. These totals include workers who may have been hired and separated more than once during the year.



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