Job Openings
The job openings rate fell to a new series low of 2.2 percent in January, continuing a 16-month downward trend. At 3.0 million in January, monthly openings were down 1.6 million, or 35 percent, since the starting point of the downward trend in September 2007.
Over the 12 months ending in January, the job openings rate (not seasonally adjusted) was essentially unchanged in five industries: mining and logging; retail trade; information; educational services; and other services. In the remaining 12 industries, at the total nonfarm and total private level, and in all four regions, the job openings rate fell significantly over the year. The job openings rate rose significantly over the year only in the federal government.
Hires
Although the hires rate of 3.3 percent was unchanged from December to January, the rate has trended downward over the last 15 months. At 4.4 million in January, monthly hires were down 928,000, or 17 percent, since the starting point of the downward trend in October 2007.
Over the 12 months ending in January, the hires rate did not increase significantly in any industry or region. The rate decreased for total nonfarm and total private and in several industries, including mining and logging; durable goods manufacturing; retail trade; accommodation and food services; and state and local government. Regionally, the hires rate fell over the year in the South and West and was essentially unchanged in the Midwest and Northeast.
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) remained essentially unchanged in January at 3.6 percent. The total separations rate (not seasonally adjusted) was also essentially unchanged over the 12 months ending in January since quits fell while layoffs and discharges rose.
The quits rate can serve as a barometer of workers’ willingness or ability to change jobs. Although the quits rate was essentially unchanged in January at 1.5 percent, the rate was at the lowest point in the 8-year series. Quits have been trending downward since December 2006, declining by 1.2 million, or 37 percent, in that time. Comparing January 2009 to January 2008, the quits rate was significantly lower for total nonfarm and total private, in most industries, and in all four regions. The rate was essentially unchanged in mining and logging; transportation, warehousing, and utilities; information; and other services. The rate did not rise significantly in the past 12 months in any industry or region.
Beginning with this release, 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 January were 2.5 million for total nonfarm, 2.4 million for total private, and 131,000 for government, corresponding to layoffs and discharges rates of 1.9 percent, 2.1 percent, and 0.6 percent, respectively. Over the 12 months ending in January, the layoffs and discharges rate (not seasonally adjusted) rose for total nonfarm and total private, in all four regions, and in many industries, including construction; durable goods manufacturing; nondurable goods manufacturing; wholesale trade; transportation, warehousing, and utilities; information; finance and insurance; real estate and rental and leasing; professional and business services; other services; and state and local government. The rate fell significantly over the year only in the federal government. In the remaining six industries, the rate was essentially unchanged.
The other separations series is not seasonally adjusted. Comparing January 2008 to January 2009, the number of other separations increased significantly for total nonfarm (to 505,000) and total private (435,000) and decreased significantly for government (70,000).
Net Change in Employment
In the 12 months ending in January, hires totaled 55.9 million and separations totaled 59.4 million, yielding a net employment loss over the year of 3.5 million. The loss resulted from total separations remaining level over the year, while hires trended sharply downward.
Annual Levels and Rates
This release contains the 2008 annual rates and levels for hires, total separations, quits, layoffs and discharges, and other separations. Note that annual figures for job openings are not calculated because job openings are measured on a stock, or point-in- time, basis rather than on a flow basis over a specified time period.
Calculating annual levels and rates allows additional comparisons across years. For the second year in a row, annual levels for hires, total separations, quits, and other separations fell in 2008, while annual levels for layoffs and discharges rose. In 2008, annual hires fell to 56.5 million (41.2 percent of employment), annual total separations fell to 59.3 million (43.3 percent of employment), annual quits declined steeply to 31.0 million (22.6 percent of employment), and annual other separations decreased to 4.0 million (2.9 percent of employment). Annual layoffs and discharges rose to 24.4 million (17.8 percent of employment) in 2008.
