Wednesday, December 9, 2015

Job Openings and Labor Turnover Summary – October, 2015



Job openings were little changed at 5.4 million on the last business day of October. Hires and separations were also little changed at 5.1 million and 4.9 million, respectively. Within separations, the quits rate was 1.9 percent and the layoffs and discharges rate was 1.2 percent.

JOB OPENINGS AND LABOR TURNOVER – OCTOBER 2015


The number of job openings was little changed at 5.4 million on the last business day of October, the U.S. Bureau of Labor Statistics reported today. Hires and separations were little changed at 5.1 million and 4.9 million, respectively. Within separations, the quits rate was 1.9 percent for the seventh consecutive month, and the layoffs and discharges rate was 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 were little changed at 5.4 million in October. The job openings rate was 3.6 percent. The number of job openings was little changed in October for total private and government. Job openings decreased in professional and business services (-137,000) and in the West region (-132,000). (See table 1.)

The number of job openings (not seasonally adjusted) increased over the 12 months ending in October for total nonfarm, total private, and government. Job openings rose over the year in health care and social assistance (+225,000), retail trade (+141,000), state and local government (+51,000), and federal government (+15,000). Job openings decreased over the year in finance and insurance (-55,000) and mining and logging (-17,000). The number of job openings increased over the year in 3 out of the 4 regions—Northeast, South, and Midwest—and was little changed in the West. (See table 7.)

Hires

The number of hires was 5.1 million in October, little changed from September. The hires rate was 3.6 percent. The number of hires was little changed for total private and government in October. There was little change in the number of hires in all industries while hires increased in the West region over the month. (See table 2.)

Over the 12 months ending in October, the number of hires (not seasonally adjusted) was little changed for total nonfarm and total private, and increased for government. At the industry level, hires increased in state and local government (+33,000). The number of hires was little changed in all four regions over the year. (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 October, little changed from September. The total separations rate was 3.4 percent. The number of total separations was little changed for total private and rose for government. In October, total separations were little changed in all industries except state and local government where the number increased. The number of total separations was essentially unchanged in all four regions. (See table 3.)

There were 2.8 million quits in October, little changed from September. The number of quits has held between 2.7 million and 2.8 million for the past 14 months. The quits rate remained unchanged in October, measuring 1.9 percent for the seventh consecutive month. The number of quits was little changed for total private and rose for government over the month. Quits rose in state and local government (+19,000) and nondurable goods manufacturing (+17,000), but fell in durable goods manufacturing (-15,000). Quits were little changed in all four regions over the month. (See table 4.)

The number of quits (not seasonally adjusted) was little changed over the 12 months ending in October for total nonfarm, total private, and government. Quits increased over the year in accommodation and food services (+58,000) and nondurable goods manufacturing (+26,000). In the regions, quits rose in the Midwest. (See table 10.)

There were 1.7 million layoffs and discharges in October, little changed from September. 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 edged up for government. Layoffs and discharges were little changed 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 October for total nonfarm and total private, and rose for government. The number of layoffs and discharges rose over the year in state and local government (+30,000) and mining and logging (+6,000). The number of layoffs and discharges fell over the year in professional and business services (-88,000) and transportation, warehousing, and utilities (-28,000). Layoffs and discharges fell in the Midwest over the year. (See table 11.)

In October, there were 414,000 other separations for total nonfarm, little changed from September. Over the month, the number of other separations was little changed for total private at 338,000 and for government at 76,000. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions.

Over the 12 months ending in October, 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 finance and insurance (+22,000), information (+7,000), and federal government (+6,000). The number of other separations decreased over the year in wholesale trade (-19,000). Other separations were 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 October 2015, hires totaled 61.0 million and separations totaled 58.3 million, yielding a net employment gain of 2.7 million. These totals include workers who may have been hired and separated.




Source: BLS

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