In August, the job openings rate remained at 2.9 percent. The rate has been 2.9 percent for 6 of the past 7 months. Job openings include only
those jobs still open on the last business day of the month. The job openings rate did not change significantly in August in any industry. Regionally, the job openings rate declined in the Northeast and West. The seasonally adjusted job openings rate was highest in August in accommodations and food services (4.1 percent).
Over the year, the job openings rate rose in finance and insurance. The rate fell over the year in natural resources and mining; transportation, warehousing, and utilities; and information. Regionally, the job openings rate fell over the year in the Northeast and Midwest.
Hires
The hires rate was little changed at 3.4 percent in August. Hires are any additions to the payroll during the month. In August, the hires rate did not change significantly in any industry or region. As in nearly every month, the seasonally adjusted hires rate was highest in August in accommodations and food services (6.4 percent).
From August 2006 to August 2007, the hires rate increased in nondurable manufacturing; finance and insurance; and federal government. The hires rate decreased in durable manufacturing; retail trade; transportation, warehousing, and utilities; and state and local government. Regionally, the hires rate fell over the year in the South.
Separations
The total separations, or turnover, rate was essentially unchanged at 3.2 percent in August. Separations are terminations of employment that occur at any time during the month. Over the month, the separations rate did not change significantly in any industry or region. From August 2006 to August 2007, the total separations rate increased in finance and insurance and in state and local government. Over the year, the total separations rate decreased in transportation, warehousing, and utilities and in other services. Geographically, the total separations rate did not change significantly in any 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 unchanged in August and has been 1.9 percent for 5 months in a row. None of the industries or regions experienced a significant change in the quits rate over the month. As in every month since the series began in December 2000, the seasonally adjusted quits rate was highest in August in the accommodations and food services industry (4.6 percent).
Over the year, the quits rate rose in finance and insurance. The quits rate fell over the year in many industries, including retail trade; trans-
portation, warehousing, and utilities; information; educational services;other services; and federal government. Geographically, the quits rate fell over the year in the Northeast region.
The other two components of total separations-layoffs and discharges,and other separations-are not seasonally adjusted. For August, the layoffs and discharges rate (1.3 percent) and level (1.8 million) were unchanged from a year earlier. The layoffs and discharges rate in August 2007 was highest in construction (3.3 percent). Over the year, the other separations rate (0.2 percent) and level (319,000) were essentially unchanged.
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 total nonfarm employment levels. The proportion of total separations due to quits fell from 61 percent in February 2001 to 51 percent in August 2003 (seasonally adjusted), and has since risen. In August 2007, quits accounted for 58 percent of total separations.
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 accommodations and food services. In the 12 months ending in August 2007, these 5 industries produced 34.1 million hires and 32.3 million separations. Thus, these five industries accounted for 58 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 39 percent of total nonfarm employment.
Although the month-to-month changes in job openings and turnover data are often small, some industries are experiencing significant over-the-year change. From August 2006 to August 2007, finance and insurance had increases in the job openings, hires, and quits rates. Transportation, warehousing, and utilities had decreases in the job openings, hires, and quits rates; information had decreases in the job openings and quits rates.
