Although the month-to-month changes in job openings, hires, and turnover data are often small, the trends over time are notable. The job openings rate remained essentially flat from August 2006 through September 2007 then began trending downward. The hires rate has had an overall downward trend since July 2006, and the separations rate has had an overall downward trend since November 2006.
Job Openings
In February, the job openings rate remained at 2.7 percent. Job openings include only those jobs open on the last business day of the month. Over the month, the job openings rate rose in education and health services (to 3.9 percent) and fell in manufacturing (1.8 percent). Geographically, the job openings rate did not change significantly in any region. Since the series began in December 2000, three industries have consistently had higher job openings rates than the other industries: education and health services (3.9 percent in February), accommodation and food services (3.8 percent), and professional and business services (3.7 percent).
Over the year, the job openings rate did not rise significantly in any industry. The rate fell over the year for total nonfarm (to 2.6 percent) and total private (2.8 percent) as well as in several industries, including construction (1.8 percent); durable goods manufacturing (1.6 percent); nondurable goods manufacturing (2.1 percent); transportation, warehousing, and utilities (2.2 percent); information (1.7 percent); other services (2.1 percent); and federal government (1.1 percent). Regionally, the job openings rate fell over the year in the Northeast (2.2 percent) and in the South (2.8 percent).
Hires
The hires rate was unchanged at 3.4 percent in February. Hires are any additions to the payroll during the month. Over the month, 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 February in accommodation and food services (6.1 percent) and lowest in state and local government (1.5 percent).
From February 2007 to February 2008, the hires rate rose in construction (to 4.3 percent); other services (3.0 percent); and in federal government (2.4 percent). Over the year, the hires rate fell in durable goods manufacturing (1.7 percent); nondurable goods manufacturing (2.3 percent); educational services (2.0 percent); and in the Midwest region (2.5 percent).
Separations
The total separations, or turnover, rate remained essentially unchanged at 3.3 percent in February. 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. As with hires, the seasonally adjusted separations rate was, as usual, highest in February in accommodation and food services (6.1 percent) and lowest in state and local government (1.2 percent). From February 2007 to February 2008, the total separations rate rose in healthcare and social assistance (2.3 percent); the rate fell over the year in durable goods manufacturing (1.9 percent) and in the Midwest
region (2.4 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 unchanged in February for total nonfarm (1.8 percent) but rose in the professional and business services industry (to 2.7 percent) and in the Northeast region (1.6 percent) and fell in retail trade (to 2.4 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 (4.3 percent) and lowest in state and local government (0.6 percent).
From February 2007 to February 2008, the quits rate did not change significantly in any industry. Geographically, the quits rate rose in the Northeast (to 1.2 percent) and fell in the Midwest (to 1.3 percent).
The other two components of total separations-layoffs and discharges, and other separations-are not seasonally adjusted. For February, the layoffs and discharges rate (1.0 percent) and level (1.4 million) were essentially unchanged from a year earlier. The layoffs and discharges rate in February 2008 was highest in arts, entertainment, and recreation (2.5 percent) and lowest in state and local government (0.1 percent). The other separations rate (0.2 percent) and level (281,000) were little changed in February from a year ago. The highest other separations rate in February was in federal government (0.6 percent). The other separations rate is 0.2 percent or lower in most industries 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 along with total nonfarm employment levels. The proportion of total separations due to quits rose from a post-recession low of 50 percent in December 2003 to a high of 61 percent in December 2006 (seasonally adjusted) before trending downward again. In February 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 (70 percent in February)and the lowest proportion regularly occurring in the construction industry (43 percent in February).
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 February 2008, these 5 industries produced 33.1 million hires and 31.8 million separations. Thus, these five industries accounted for 58 percent of total nonfarm hires and 58 percent of total nonfarm separations while comprising only 40 percent of total nonfarm employment.
