Job Openings
Job openings were essentially unchanged from January to February, although the number of job openings has trended downward since mid 2007. At 3.0 million in February, monthly openings were down 1.6 million, or 35 percent, since the high point in August 2007. The job openings rate changed significantly in February only in manufacturing, where it edged up.
Over the 12 months ending in February, the job openings rate (not seasonally adjusted) was essentially unchanged in the Northeast region and in six industries: retail trade; information; finance and insurance; real estate and rental and leasing; educational services; and other services. In the remaining 11 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. The job openings rate rose significantly over the year only in the federal government.
Hires
Hires, at 4.4 million in February, were essentially unchanged from January. However, monthly hires were down 967,000, or 18 percent, since the high point in October 2007. The hires rate was 3.3 percent in February. No industry experienced a significant change in the hires rate in February. Regionally, the rate rose significantly in the Northeast and fell significantly in the Midwest.
Over the 12 months ending in February, the hires rate did not increase significantly in any industry or region. The rate decreased significantly over the year for total nonfarm, total private, and several industries, including retail trade; finance and insurance; 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: Midwest, South, and West.
Separations
Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements). The total separations, or turnover, rate (seasonally adjusted) was essentially unchanged in February at 3.6 percent. The total separations rate (not seasonally adjusted) was also essentially unchanged over the 12 months ending in February because quits fell while layoffs and discharges rose.
The quits rate can serve as a barometer of workers’ willingness or ability to change jobs. The rate remained at 1.5 percent in February—the lowest point in the 8-year series. Quits have been trending downward since December 2006, declining by 1.2 million, or 37 percent. Comparing February 2009 to February 2008, the quits rate was significantly lower for total nonfarm, total private, and most industries. The rate was essentially unchanged in information; educational services; arts, entertainment, and recreation; and other services. The rate did not rise significantly in the past 12 months in any industry. Regionally, the quits rate fell significantly in three of the four regions -Northeast, South, and West. The rate was essentially unchanged in the Midwest region.
The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. Seasonally adjusted layoffs and discharges in February were 2.5 million for total nonfarm, 2.3 million for total private, and 106,000 for government, corresponding to layoffs and discharges rates of 1.8 percent, 2.1 percent, and 0.5 percent, respectively. Over the 12 months ending in February, the layoffs and discharges rate (not seasonally adjusted) rose significantly for total nonfarm, total private, and many industries, including mining and logging; construction; durable goods manufacturing; nondurable goods manufacturing; wholesale trade; transportation, warehousing, and utilities; finance and insurance; real estate and rental and leasing; and professional and business services. In the remaining industries, the rate was essentially unchanged. Regionally, the layoffs and discharges rate rose in the Midwest, South, and West and was little changed in the Northeast.
The other separations series is not seasonally adjusted. Comparing February 2008 to February 2009, the number of other separations was little changed for total nonfarm (280,000), total private (251,000), and government (29,000).
The total separations rate is driven by the relative contribution of its three components -quits, layoffs and discharges, and other separations. The percentage of total separations attributable to the individual components has varied over time. The proportion of quits has been trending downward from a high of 62 percent in January 2006, to a series low of 42 percent in February 2009. The proportion of layoffs and discharges has increased, climbing from the most-recent low of 33 percent in March 2006 to 51 percent in February 2009.
Net Change in Employment
In the 12 months ending in February, hires totaled 55.3 million and separations totaled 59.2 million, yielding a net employment loss over the year of 3.9 million. The loss resulted from total separations remaining level over the year, while hires trended sharply downward.
