Sunday, October 18, 2015

Job Openings and Labor Turnover Summary – August, 2015



The number of job openings decreased to 5.4 million on the last business day of August, the U.S. Bureau of Labor Statistics reported today. The number of hires and separations was little changed at 5.1 million and 4.8 million, respectively. Within separations, the quits rate was 1.9 percent for the fifth month in a row, 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.


Job Openings

Job openings decreased to 5.4 million in August after reaching a series high of 5.7 million in July. The job openings rate for August was 3.6 percent, the same rate as in April, May, and June. The number of job openings decreased in August for total private and government. Job openings declined in state and local government (-33,000) and nondurable goods manufacturing (-25,000). The number of openings was little changed in all four regions. (See table 1.)

The number of job openings (not seasonally adjusted) increased over the 12 months ending in August for total nonfarm, total private and government. Job openings rose over the year for several industries with the largest increases occurring in professional and business services (+184,000) and in health care and social assistance (+103,000). Job openings decreased over the year in arts, entertainment, and recreation (-31,000) and in mining and logging (-14,000). Among the regions, the number of job openings increased over the year in the South (+198,000), Midwest (+109,000), and the West (+109,000). (See table 7.)

Hires

The number of hires was 5.1 million in August, about the same as in July. The hires rate was 3.6
percent. The number of hires was little changed for total private and government in August. 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 August, the number of hires (not seasonally adjusted) rose for total nonfarm, total private, and government. At the industry level, hires increased in accommodation and food services (+165,000), state and local government (+129,000), health care and social assistance (+87,000), and federal government (+9,000). Among the regions, the number of hires rose in the Northeast (+151,000) and in the South (+144,000). (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 4.8 million total separations in August, about the same as in July. The separations rate was 3.4 percent. The number of total separations was little changed for total private and government. In August, total separations was little changed in all industries and increased in the Northeast region (+105,000). (See table 3.)

There were 2.7 million quits in August, little changed from July. The number of quits has held between 2.7 million and 2.8 million for the past 12 months after increasing steadily since the end of the recession. The quits rate was unchanged in August, measuring 1.9 percent for the fifth month in a row. The number of quits was little changed for total private and government over the month. Quits increased in arts, entertainment, and recreation (+17,000) and in nondurable goods manufacturing (+15,000). The number of quits was little changed in all four regions. (See table 4.)

The number of quits (not seasonally adjusted) increased over the 12 months ending in August for total nonfarm, total private, and government. Several industries experienced an increase in the number of quits over the year led by accommodation and food services (+97,000) and health care and social assistance (+86,000). Quits decreased over the year in real estate, rental, and leasing (-23,000). In the regions, quits increased in the South (+170,000) and Northeast (+84,000). (See table 10.)

There were 1.7 million layoffs and discharges in August, about the same as in July. 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. Within the regions, the number increased in the Northeast (+111,000). (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 August for total nonfarm and total private, and increased for government. The number of layoffs and discharges rose over the year in accommodation and food services (+107,000), state and local government (+41,000) and durable goods manufacturing (+30,000). Layoffs and discharges decreased over the year in professional and business services (-122,000), arts entertainment and recreation (-54,000) and wholesale trade (-32,000). The number of layoffs and discharges rose over the year in the Midwest region (+130,000) and fell in the South region (-143,000). (See table 11.)

In August, there were 417,000 other separations for total nonfarm, about the same as in July. Over the month, the number of other separations was little changed for total private at 355,000 and decreased for government to 62,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in August, the number of other separations (not seasonally adjusted) was little changed for total nonfarm, edged up for total private, and decreased for government. Other separations increased over the year in retail trade (+39,000), professional and business services (+37,000), and information (+5,000). The number of other separations decreased in accommodation and food services (-25,000) and in state and local government (-14,000). Other separations was little changed in all four regions over the year. (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 August 2015, hires totaled 60.9 million and separations totaled 58.2 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.





Source: BLS

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