Although the month-to-month changes in job openings, hires, and turnover data are often small, the trends over time are notable. The job openings rate remained essentially flat from August 2006 through September 2007 then began trending downward; the rate in March was at the lowest point since mid-2005. The hires rate has had an overall downward trend since July 2006, and has reached the lowest level since early 2004. The separations rate has had an overall downward trend since November 2006.
Job Openings
In March, the job openings rate was essentially unchanged at 2.6 percent. Job openings include only those jobs open on the last business day of the month. Over the month, the job openings rate did not rise or fall significantly in any industry or region. Since the series began in December 2000, three industries have consistently had higher job openings rates than the other industries: education and health services (3.7 percent in March), accommodation and food services (3.8 percent), and professional and business services (3.9 percent).
Over the year, the job openings rate (not seasonally adjusted) rose significantly only for federal government. The rate fell over the year for total nonfarm (to 2.7 percent) and total private (2.9 percent) as well as in several industries, including construction (1.4 percent); durable goods manufacturing (1.8 percent); wholesale trade (2.2 percent); transportation, warehousing, and utilities (1.9 percent); information (1.7 percent); and finance and insurance (2.7 percent). Two industries-wholesale trade and information--have experienced exceptionally steep declines in the job openings rate over the past year. The job openings rate for wholesale trade fell from 3.8 percent in March 2007 to 2.2 percent in March 2008; the rate
for information fell from 4.5 percent in March 2007 to 1.7 percent in March 2008. Regionally, the job openings rate fell over the year in the Northeast (2.3 percent)and in the South (2.8 percent).
Hires
The hires rate was unchanged at 3.3 percent in March. Hires are any additions to the payroll during the month. Over the month, the hires rate did not change significantly in any industry or region. As occurs nearly every month, the seasonally adjusted hires rate was highest in March in accommodation and food services (5.7 percent) and lowest in state and local government (1.6 percent).
From March 2007 to March 2008, the hires rate (not seasonally adjusted) did not increase significantly in any industry or region. Over the year, the hires rate did fall significantly for total nonfarm (to 3.2 percent) and total private (3.6 percent)as well as in the information industry (1.4 percent), in the South region (3.3 percent), and in the Midwest region (3.0 percent). The downward trend in the hires rate since 2006 was steepest in construction; transportation, warehousing,and utilities; information; and professional and business services.
Separations
The total separations, or turnover, rate was essentially unchanged at 3.2 percent in March. Separations are terminations of employment that occur at any time during the month. Over the month, the separations rate did not change significantly in any industry or region. As with hires, the seasonally adjusted separations rate was, as usual, highest in March in accommodation and food services (5.6 percent) and lowest in state and local government (1.1 percent). From March 2007 to March 2008, the total separations rate did not rise in any industry or region; the rate fell for total nonfarm (to 2.8 percent); durable goods manufacturing (2.2 percent); nondurable goods manufacturing (2.3 percent); wholesale trade (2.0 percent); federal government (1.4 percent); and in the Midwest (2.4 percent) and South (3.0 percent) 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 little changed in March for total nonfarm (1.7 percent). The quits rate fell over the month in manufacturing (to 1.2 percent); professional and business services (2.1 percent); state and
local government (0.5 percent); and in the Northeast region (1.3 percent). As has occurred every month since the series began in December 2000, the seasonally adjusted quits rate was highest in the accommodation and food services industry (4.2 percent) and lowest in state and local government (0.5 percent).
From March 2007 to March 2008, the quits rate (not seasonally adjusted) did not increase significantly in any industry. The quits rate fell over the year for total nonfarm (to 1.6 percent) and total private (1.8 percent), as well as in many industries, including durable goods manufacturing (1.1 percent); nondurable goods manufacturing (1.3 percent); wholesale trade (1.0 percent); information (1.0 percent); professional
and business services (2.1 percent); and state and local government (0.4 percent). Geographically, the quits rate fell over the year in the Midwest (1.3 percent) and South (1.9 percent).
The other two components of total separations-layoffs and discharges, and other separations-are not seasonally adjusted. For March, the layoffs and discharges rate (1.0 percent) and level (1.4 million) were unchanged from a year earlier. The layoffs and discharges rate in March 2008 was highest in arts, entertainment, and recreation(2.9 percent) and lowest in state and local government (0.2 percent). The other separations rate (0.2 percent) and level (310,000) were essentially unchanged in March from a year earlier. The highest other separations rate in March was for federal government (0.6 percent). The other separations rate for most of the other industries range from 0.1 to 0.3 each month.
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 rose from a post-recession low of 50 percent in December 2003 to a high of 61 percent in December 2006 (seasonally adjusted) before trending downward again. In March 2008, quits accounted for 54 percent of total separations. The proportion of separations attributable to quits varies widely by industry with the highest proportion regularly occurring in the accommodation and food services industry (76 percent in March)and the lowest proportion regularly occurring in the construction industry (30 percent in March).
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 accommodation and food services. In the 12 months ending in March 2008, these 5 industries produced 32.9 million hires and 31.8 million separations. Thus, these five industries accounted for 58 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 40 percent of total nonfarm employment.
