In May, the job openings rate was unchanged at 2.9 percent. Job openings include only those jobs still open on the last business day of the month. The job openings rate rose over the month in the accommodations and food services industry. None of the regions experienced a significant over-the-month change in the job openings rate. The seasonally adjusted job openings rate was highest in May for the following industries: accommodations and food services (4.2 percent), professional and business services (3.7 percent), and education and health services (3.7 percent).
Over the year, the job openings rate increased in construction; nondurable goods manufacturing; health care and social assistance; and accommodations and food services. The rate decreased in wholesale trade and retail trade. The job openings rate did not change significantly over the year in any of the regions.
Hires
The hires rate was little changed at 3.6 percent in May. Hires are any additions to the payroll during the month. In May, there were no significant increases or decreases in the hires rate for any of the industries or regions. The seasonally adjusted hires rate was highest in May in accommodations and food services (6.9 percent).
From May 2006 to May 2007, the hires rate rose in finance and insurance; accommodations and food services; and federal government. The hires rate fell in durable goods manufacturing; information; professional and business services; and health care and social assistance. The hires rate decreased over the year in the Northeast region.
Separations
The total separations, or turnover, rate was little changed at 3.2 percent in May. 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 May 2006 to May 2007, the total separations rate increased in natural resources and mining and in federal government. The total separations rate decreased in construction; trade, transportation, and utilities; professional and business services; educational services; and state and local government. 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 at 1.9 percent in May. None of the industries or regions experienced a significant change in the quits rate over the month. In May, the seasonally adjusted quits rate among industries was highest in the accommodations and food services industry (4.4 percent).
Over the year, the quits rate rose in natural resources and mining; durable goods manufacturing; and finance and insurance. The quits rate fell over the year in construction; information; professional and business services; and educational services. Geographically, the quits rate fell over the year in the Northeast and Midwest regions.
The other two components of total separations-layoffs and discharges, and other separations- are not seasonally adjusted. For May, the layoffs and discharges rate (0.9 percent) and level (1.3 million) decreased from a year earlier. As is the case in many months, the layoffs and discharges rate in May was highest in arts, entertainment, and recreation (3.0 percent) and construction (2.0 percent). From May 2006 to May 2007, the other separations rate decreased slightly to 0.2 percent, and the level decreased to 311,000.
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 May 2007, quits accounted for 60 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 May 2007, these 5 industries produced 34.6 million hires and 32.5 million separations. Thus, these five industries accounted for 59 percent of total nonfarm hires and 59 percent of total nonfarm separations while comprising only 39 percent of total nonfarm employment.
