In June, the job openings rate increased slightly to 3.0 percent after remaining steady at 2.9 percent for the prior 4 months. Job openings include only those jobs still open on the last business day of the month. The job openings rate rose in June in retail trade and in professional and business services but fell in construction. The job openings rate increased over the month in the West region. The seasonally adjusted job openings rate was highest in June for the following industries: professional and business services (4.3 percent) and accommodations and food services (4.0 percent).
Over the year, the job openings rate increased in nondurable goods manufacturing; retail trade; and professional and business services. The rate decreased in construction and in transportation, warehousing, and utilities. The job openings rate increased over the year in the West region.
Hires
The hires rate was little changed at 3.4 percent in June. Hires are any additions to the payroll during the month. In June, the hires rate did not increase significantly in any industry but decreased in retail trade. The hires rate decreased over the month in the South region. The seasonally adjusted hires rate was highest in June in accommodations and food services (6.3 percent).
From June 2006 to June 2007, the hires rate rose in natural resources and mining; finance and insurance; and federal government. The hires rate fell in retail trade; transportation, warehousing, and utilities; and state and local government. The hires rate decreased over the year in both the Northeast and South regions.
Separations
The total separations, or turnover, rate was unchanged at 3.3 percent in June. Separations are terminations of employment that occur at any time during the month. Over the month, none of the industries or regions experienced a significant change in the separations rate. From June 2006 to June 2007, the total separations rate increased in federal government. The total separations rate decreased in retail trade; transportation, warehousing, and utilities; real estate and rental and leasing; and state and local government. Geographically, the total separations rate fell over the year in both the Northeast and South 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 at 1.9 percent in June. None of the industries experienced a significant change in the quits rate over the month. The quits rate decreased in the South region. In June, the seasonally adjusted quits rate was highest in the accommodations and food services industry (4.6 percent).
Over the year, the quits rate rose in natural resources and mining. The quits rate fell over the year in information and in real estate and rental and leasing. Geographically, the quits rate fell over the year in the South region.
The other two components of total separations-layoffs and discharges,and other separations-are not seasonally adjusted. For June, 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 June was highest in educational services (2.0 percent), followed closely by arts, entertainment, and recreation (1.9 percent) and construction (1.9 percent). From June 2006 to June 2007, the other separations rate was unchanged at 0.3 percent and the level was essentially unchanged at 410,000.
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 June 2007, quits accounted for 58 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 busi-
ness services; arts, entertainment, and recreation; and accommodations and food services. In the 12 months ending in June 2007, these 5 industries produced 34.4 million hires and 32.4 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.
