Monday, September 12, 2016

Job Openings and Labor Turnover – July, 2016: Job openings increased to 5.9 million



The number of job openings increased to 5.9 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Hires and separations were little changed at 5.2 million and 4.9 million, respectively. Within separations, the quits rate was 2.1 percent and the layoffs and discharges rate was 1.1 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

On the last business day of July, there were 5.9 million job openings, an increase of 228,000 from June. The job openings rate was 3.9 percent in July. The number of job openings increased over the month for total private (+243,000) and was little changed for government. Job openings increased in professional and business services (+166,000) and durable goods manufacturing (+27,000) but decreased in health care and social assistance (-63,000). The number of job openings was little changed in all four regions. (See table 1.)

Hires

The number of hires was 5.2 million in July, little changed from June. The hires rate was 3.6 percent in July. The number of hires was little changed for total private and for government. Hires increased in professional and business services (+137,000) but decreased in other services (-77,000). The number of hires increased in the South region. (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, disability, and transfers to other locations of the same firm.

There were 4.9 million total separations in July, little changed from June. The total separations rate in July was 3.4 percent. The number of total separations was essentially unchanged for total private and edged down for government (-25,000) over the month. Total separations decreased in state and local government education (-29,000). The number of total separations was little changed in all four regions. (See table 3.)

The number of quits was essentially unchanged in July 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 decreased for government  (-21,000). Quits decreased in state and local government education (-25,000). The number of quits was little changed in all four regions. (See table 4.)

There were 1.6 million layoffs and discharges in July, little changed from June. The layoffs and
discharges rate was 1.1 percent. The number of layoffs and discharges was essentially unchanged over the month for total private and for government. The layoffs and discharges level was also essentially unchanged in all industries and in all four regions. (See table 5.)

The number of other separations was little changed for total nonfarm, total private, and government in July. Other separations decreased in other services (-12,000), educational services (-6,000), and state and local government education (-5,000). The number of other separations was little changed over the month in all four regions. (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 July, hires totaled 62.5 million and separations totaled 60.0 million, yielding a net employment gain of 2.5 million. These totals include workers who may have been hired and separated more than once during the year.





Source: BLS

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