The job openings rate was little changed in July at a rate of 1.8 percent. The number of job openings has fallen by 2.4 million, or 50 percent, since the most recent peak in June 2007. The job openings rate was little changed in July in every industry except retail where the rate declined. The job openings rate decreased in the Northeast and was little changed in the remaining regions.
Over the 12 months ending in July, the job openings rates (not seasonally adjusted) decreased for total nonfarm, total private, government, and the majority of industries. The exceptions were information and arts, entertainment, and recreation, in which the rates were little changed. All four regions experienced a drop in the job openings rate over the 12 months ending in July.
Hires
The hires level was little changed at 4.1 million in July but has declined by 1.6 million, or 28 percent, since the most recent peak in July 2006. The hires rate was 3.1 percent in July and little changed from June. The hires rate increased over the month in construction.
Over the 12 months ending in July, the hires rate (not seasonally adjusted) declined for total nonfarm and total private. The hires rate decreased for retail trade; health care and social assistance; and accommodation and food services. The hires rate was little changed in the remaining industries. The hires rate fell over the past 12 months in the South and was little changed in the remaining regions.
Separations
The total separations, or turnover, rate was unchanged in July and remained low at 3.3 percent. The total separations rate(not seasonally adjusted) decreased over the 12 months ending in July for total nonfarm, total private, and government. Total separations includes quits (voluntary separations), layoffs and discharges(involuntary separations), and other separations (including retirements).
The quits rate can serve as a measure of workers’ willingness or ability to change jobs. The rate was little changed in July at 1.3 percent. The quits level was 1.7 million in July, which is 45 percent lower than the most recent peak in December 2006.
Over the 12 months ending in July, the quits rate (not seasonally adjusted) was lower for total nonfarm, total private, government, the majority of industries, and all four regions. The industries for which the quits rates were little changed over the year include transportation, warehousing, and utilities; information; finance and insurance; real estate and rental and leasing; other services; and federal government.
The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. The layoffs and discharges level was little changed in July at 2.3 million for total nonfarm. The level for total private increased to 2.2 million and decreased to 114,000 for government. The corresponding layoffs and discharges rates were 1.8 percent, 2.1 percent, and 0.5 percent, respectively. The number of layoffs and discharges in July was 46 percent higher than the recent low point in January 2006.
The layoffs and discharges rate (not seasonally adjusted)increased over the 12 months ending in July for total nonfarm and total private and was little changed for government. The layoffs and discharges rate rose in mining and logging; construction; durable goods manufacturing; nondurable goods manufacturing; professional and business services; and educational services. The layoffs and discharges rate increased in the West and was little changed in the remaining regions.
The other separations series is not seasonally adjusted. In July, there were 350,000 other separations for total nonfarm, 270,000 for total private, and 81,000 for government. Compared to July 2008, the number of other separations was little changed for total nonfarm, total private, and government.
The total separations level is influenced by the relative contribution of its three components - quits, layoffs and discharges, and other separations. The percentage of total separations at the total nonfarm level attributable to the individual components has varied over time. The proportion of separations due to quits declined from 61 percent in January 2007 to a series low of 38 percent in April 2009. It then rose slightly and stood at 40 percent in July 2009. The proportion of layoffs and discharges reached a series high of 54percent in March 2009 and April 2009 then dropped slightly before returning to 54 percent in July 2009.
Net Change in Employment
Over the 12 months ending in July, hires totaled 51.3 million and separations totaled 56.6 million, yielding a net employment loss of5.3 million.
