Job Openings
Although job openings were essentially unchanged from November to December, the number of job openings has trended downward for 18 months. At 2.7 million in December, monthly openings were down 1.4 million, or 35 percent, since the starting point of the downward trend in July 2007. The job openings rate was 1.9 percent in December, a new series low. The job openings rate changed significantly in December in two industries - retail trade and education and health services - in which the rate fell. The rate did not change significantly in December in any of the regions. Over the 12 months ending in December, the job openings rate (not seasonally adjusted) did not rise significantly in any industry or region. The rate was essentially unchanged in six industries: natural resources and mining; retail trade; information; finance and insurance; real estate and rental and leasing; and other services. In the remaining 12 industries and at the total nonfarm and total private level, the job openings rate fell significantly over the year. Three of the four regions experienced a significant decline in the job openings rate over the year: Midwest, South, and West.
Hires
Hires were essentially unchanged in December at 3.9 million but remain low, down 900,000, or 19 percent, from a year ago. The hires rate was 2.9 percent in December. No industry or region experienced a significant change in the hires rate in December.
Over the 12 months ending in December, the hires rate did not increase significantly in any industry or region. The rate decreased over the past 12 months for total nonfarm and total private and in several industries, including durable goods manufacturing; nondurable goods manufacturing; retail trade; arts, entertainment, and recreation; accommodation and food services; federal government; and state and local government. In three of the four regions, the hires rate dropped significantly over the past 12 months: Northeast, South, and West.
Separations
The total separations, or turnover, rate was higher in December than in November and higher than a year ago. The quits rate can serve as a barometer of workers’ willingness or ability to change jobs. Although the quits rate was essentially unchanged in December at 1.5 percent, it remains at a low level last occurring in August 2003. Comparing December 2008 to December 2007, the quits rate was significantly lower for total nonfarm and total private and in many industries, including durable goods manufacturing; nondurable goods manufacturing; wholesale trade; retail trade; real estate and rental and leasing; arts, entertainment, and recreation; and accommodation and food services. Regionally, the quits rate fell over the year in three of the four regions: Midwest, South, and West. The quits rate did not rise significantly in the past 12 months in any industry or region.
The other two components of total separations -layoffs and discharges, and other separations - are not seasonally adjusted. Layoffs and discharges are up substantially over the past 12 months. There were 2.8 million layoffs and discharges in December, which is a 58 percent increase from a year earlier. In the past 12 months, layoffs and discharges increased significantly in most industries, in all four regions, and for total nonfarm and total private. The layoffs and discharges rate fell significantly only for the federal government in the past 12 months. The other separations level was 262,000 in December, which is significantly lower than a year ago.
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 varied over time and has been trending downward from a high of 61 percent in December 2006. Quits dropped to only 40 percent of total separations in December 2008, a new series low, as layoffs and discharges increased substantially.
