Job Openings
In April, the job openings rate was unchanged at 2.6 percent. Job openings include only those jobs open on the last business day of the month. Over the month, the job openings rate did not rise or fall significantly in any industry or region. Since the series began in December 2000, three industries consistently have had higher job openings rates than the other industries: professional and business services (3.7 percent in April), education and health services (3.6 percent), and accommodation and food services (3.7 percent).
Over the year, the job openings rate (not seasonally adjusted) did not rise significantly for any industry. The rate fell over the year for total nonfarm (to 2.7 percent) and total private (2.9 percent) as well as in several industries, including construction (1.6 percent); durable goods manufacturing (1.7 percent); nondurable goods manufacturing (2.1 percent); wholesale trade (2.0 percent); information (2.3 percent); finance and insurance (2.0 percent); educational services (1.6 percent); and state and local government (1.9 percent). Two industries--wholesale trade and information—have experienced exceptionally steep declines in the job openings rate over the past year. The job openings rate for wholesale trade fell from 4.1 percent in April 2007 to 2.0 percent in April 2008; the rate for information fell from 4.3 percent to 2.3 percent. Regionally, the job openings rate fell over the year in the South (2.8 percent).
Hires
The hires rate, at 3.5 percent in April, did not change significantly over the month. Hires are any additions to the payroll during the month. For the fourth month in a row, the hires rate did not change significantly in any industry or region. As occurs nearly every month, the seasonally adjusted hires rate was highest in April in accommodation and food services (5.9 percent) and lowest in state and local government (1.6 percent).
From April 2007 to April 2008, the hires rate (not seasonally adjusted) increased in natural resources and mining (to 4.9 percent), construction (7.0 percent), and federal government (4.0 percent). Over the year, the hires rate decreased significantl in wholesale trade (2.1 percent), information (1.9 percent), finance and insurance (1.8 percent), and accommodation and food services (6.2 percent). The hires rate did not change significantly in any region in April. The steep downward trend in the hires rate since 2006 continues in transportation, warehousing, and utilities, but the rates have leveled off in construction, information, and professional and business services.
Separations
The total separations, or turnover, rate was unchanged at 3.2 percent in April. Separations are terminations of employment that occur at any time during the month. Over the month, the separations rate increased in two industries--manufacturing (to 2.8 percent) and state and local government (to 1.3 percent). The seasonally adjusted separations rate was highest in April in construction (5.6 percent) and lowest in state and local government (1.3 percent). From April 2007 to April 2008, the total separations rate did not rise in any industry or region; the rate fell in arts, entertainment, and recreation (4.5 percent), accommodation and food services (5.0 percent), and in the South region (3.3 percent).
Total separations include quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements). The quits rate, which can serve as a barometer of workers ability to change jobs, was little changed in April for total nonfarm (at 1.8 percent). The quits rate did not decrease in any industry in April, but rose in state and local government (to 0.7 percent). As has occurred every month since the series began in December 2000, the seasonally adjusted quits rate was highest in the accommodation and food services industry (4.0 percent) and lowest in state and local government (0.7 percent).
From April 2007 to April 2008, the quits rate (not seasonally adjusted) rose in real estate and rental and leasing (to 2.4 percent). The quits rate fell over the year in wholesale trade (1.1 percent), accommodation and food services (3.8 percent), and in the South region (2.1 percent).
The other two components of total separations--layoffs and discharges, and other separations--are not seasonally adjusted. For April, the layoffs and discharges rate (1.0 percent) and level (1.4 million) were little changed from a year earlier. The lay- offs and discharges rate in April 2008 was highest in construction (2.6 percent) and arts, entertainment, and recreation (2.4 percent), and lowest in state and local government (0.2 percent). The other separations rate (0.3 percent) and level (355,000) were essentially unchanged in April from a year earlier. The highest other separations rate in April 2008 was for the federal government (0.9 percent). The other separations rate for most of the other industries ranged from 0.1 to 0.3 percent each month.
The total separations rate is driven by the relative contribution of its three components (quits, layoffs and discharges, and other separations), with quits contributing the largest portion. The percentage of total separations attributable to quits has risen and fallen over time. The proportion of total separations due to quits rose from a postrecession low of 50 percent in December 2003 to a high of 61 percent in December 2006 (seasonally adjusted) before trending downward again. In April 2008, quits accounted for 56 percent of total separations. The proportion of separations attributable to quits varies widely by industry with the highest proportion regularly occurring in the accommodation and food services industry (74 percent in April) and the lowest proportion regularly
occurring in the construction industry (34 percent in April).
Flows in the Labor Market
Several industries consistently have high rates of both hires and separations. These include construction; retail trade; professional and business services; arts, entertainment, and recreation; and accommodation and food services. In the 12 months ending in April 2008, these 5 industries produced 32.9 million hires and 31.7 million separations. Therefore, these five industries accounted for 58 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 40 percent of total nonfarm employment.
