In July, the job openings rate remained at 3.0 percent. The rate has been 2.9 or 3.0 percent for the last 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 July in any industry or region. The seasonally adjusted job openings rate was highest in July in professional and business services and in accommodations and food services (4.0 percent each).
Over the year, the job openings rate increased in nondurable goods manufacturing and in professional and business services. The rate decreased in the information industry. The job openings rate increased over the year in the West region.
Hires
The hires rate was little changed at 3.5 percent in July. Hires are any additions to the payroll during the month. In July, the hires rate did not change significantly in any industry or region. The seasonally adjusted hires rate was highest in July in accommodations and food services (6.1 percent).
From July 2006 to July 2007, the hires rate rose in federal government. The hires rate fell in retail trade; transportation, warehousing, and utilities; information; finance and insurance; health care and social assistance; and state and local government. The hires rate also fell over the year in the Northeast region.
Separations
The total separations, or turnover, rate was essentially unchanged at 3.2 percent in July. Separations are terminations of employment that occur at any time during the month. Over the month, the only industry to experience a significant change in the separations rate was education and health services. None of the regions experienced a significant change in the separations rate. From July 2006 to July 2007, the total separations rate increased in natural resources and mining and in federal government. The total separations rate decreased in information; real estate and rental and leasing; and educational services. Geographically, the total separations rate fell over the year in both the Northeast and Midwest regions.
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 July, and has been 1.9 percent for 4 months in a row. None of the industries experienced a significant change in the quits rate over the month. Regionally, the quits rate decreased in the Northeast. In July, the seasonally adjusted quits rate was highest in the accommodations and food services industry (4.5 percent).
Over the year, the quits rate rose in natural resources and mining. The quits rate fell over the year in durable goods manufacturing; information; real estate and rental and leasing; and state and local 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 July, the layoffs and discharges rate (1.1 percent) and level (1.5 million) were unchanged from a year earlier. The layoffs and discharges rate in July was highest in construction (1.8 percent), followed closely by professional and business services (1.7 percent). From July 2006 to July 2007, the other separations level declined to 348,000.
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 July 2007, quits accounted for 59 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 July 2007, these 5 industries produced 34.2 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.
