Job Openings
In April, the job openings rate was unchanged at 2.9 percent. Job openings include only those jobs still open on the last business day of the month. The job openings rate fell over the month in the accommodations and food services industry. None of the regions experienced a significant over-the-month change in the job openings rate. The seasonally adjusted job openings rate was highest in April for the following industries: professional and business services (4.2 percent), accommodations and food services (3.8 percent), and education and health services (3.7 percent).
Over the year, the job openings rate increased in nondurable goods manufacturing; health care and social assistance; and other services. The rate decreased in finance and insurance; educational services; and arts, entertainment, and recreation. The job openings rate did not change significantly over the year in any of the regions.
Hires
The hires rate was unchanged at 3.5 percent in April. Hires are any additions to the payroll during the month. In April, the hires rate increased in accommodations and food services. None of the regions experienced a significant over-the-month change in the hires rate. The seasonally adjusted hires rate was highest in April in accommodations and food services (7.1 percent).
From April 2006 to April 2007, the hires rate rose in nondurable goods manufacturing; finance and insurance; accommodations and food services; and federal government. The hires rate fell in real estate and rental and leasing; educational services; and arts, entertainment, and recreation. None of the regions experienced a significant over-the-year change in the hires rate.
Separations
The total separations, or turnover, rate was little changed at 3.3 percent in April. Separations are terminations of employment that occur at any time during the month. In April, none of the industries or regions experienced a significant change in the separations rate. From April 2006 to April 2007, the total separations rate increased in durable goods manufacturing; arts, entertainment, and recreation; and federal government. The total separations rate decreased in information. Geographically, the total separations rate rose over the year in the
South region.
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 at 1.9 percent in April. None of the industries or regions experienced a significant change in the quits rate over the month. In April, the seasonally adjusted quits rate was highest in the accommodations and food services industry (4.6 percent).
Over the year, the quits rate rose in nondurable goods manufacturing. The quits rate fell over the year in transportation, warehousing, and
utilities; and information. Geographically, the quits rate rose over the year in the South region.
The other two components of total separations-layoffs and discharges, and other separations-are not seasonally adjusted. For April, the layoffs and discharges rate (1.1 percent) and level (1.5 million) were essentially unchanged from a year earlier. As is typical many months, the layoffs and discharges rate in April was highest in arts, entertainment, and recreation (5.4 percent), construction (2.3 percent), and professional and business services (2.3 percent). From April 2006 to April 2007, the other separations rate decreased to 0.2 percent, and the level decreased to 308,000.
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 along with employment levels. The proportion of quits fell from 61 percent in February 2001 to 51 percent in August 2003 (seasonally adjusted), and has since risen. In April 2007, the percentage of quits was 58 percent.
Flows in the Labor Market
Hires and separations data help show dynamic flows in the labor market. For the 12 months ending in April 2007, hires have averaged 4.9 million per month and separations have averaged 4.6 million per month (not seasonally adjusted). The comparable figures for the prior 12-month period were 4.8 million hires and 4.6 million separations.
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 accommodations and food services. In the 12 months ending in April 2007, these five industries produced 34.8 million hires and 33.0 million separations. Thus, these five industries accounted for 59 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 39 percent of total nonfarm employment.
