Friday, May 13, 2016

Job Openings and Labor Turnover Summary – March, 2016: Construction workforce on the move as Quits increased in construction (+50,000)



JOB OPENINGS AND LABOR TURNOVER – MARCH 2016

The number of job openings was little changed at 5.8 million on the last business day of March, the U.S. Bureau of Labor Statistics reported today. Hires edged down to 5.3 million while separations were little changed at 5.0 million. Within separations, the quits rate was 2.1 percent, 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 5.8 million in March. The job openings rate was 3.9 percent. The number of job openings was little changed in March for total private and edged up for government. Job openings increased in professional and business services (+124,000), transportation, warehousing, and utilities (+35,000), and nondurable goods manufacturing (+29,000). Job openings decreased in retail trade (-80,000), educational services (-36,000), and wholesale trade (-35,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires edged down to 5.3 million in March. The hires rate was 3.7 percent. The number of hires decreased for total private (-241,000) and was little changed for government. Hires rose in state and local government education (+23,000), but fell in retail trade (-85,000) and educational services (-21,000). In the regions, hires decreased in the West. (See table 2.)

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 5.0 million total separations in March, little changed from February. The total separations rate in March was 3.5 percent. The number of total separations was little changed for total private and for government. Total separations decreased in finance and insurance (-38,000). The number of total separations was down in the South region. (See table 3.)

The number of quits was little changed in March at 3.0 million. The quits rate was 2.1 percent. Over the month, the number of quits was little changed for total private and government. Quits increased in construction (+50,000) and state and local government, excluding education (+9,000). Quits decreased in finance and insurance (-38,000) and arts, entertainment, and recreation (-19,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.7 million layoffs and discharges in March, little changed from February. 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 for government. In March, layoffs and discharges rose in arts, entertainment, and recreation (+35,000) but fell in mining and logging (-6,000). The number of layoffs and discharges decreased in the South region. (See table 5.)

In March, other separations was little changed for total nonfarm, total private, and government. The number of other separations decreased in retail trade (-22,000), nondurable goods manufacturing (-7,000), and information (-5,000). In the regions, the number of other separations increased in the Northeast and Midwest but decreased in the West. (See table 6.)

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 March, hires totaled 62.4 million and separations totaled 59.6 million, yielding a net employment gain of 2.8 million. These totals include workers who may have been hired and separated more than once during the year.






Source: BLS

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