Job Openings
The number of job openings declined in November 2008, continuing the downward trend begun over a year ago. At 2.8 million in November, openings were down 1.2 million, or 30 percent, from a year ago. The job openings rate was 2.0 percent in November, matching the series low set in September 2003. The job openings rate fell at the total nonfarm level, and in manufacturing, accommodation and food services, and government. The rate increased significantly in November only in retail trade.
Over the last 12 months, the job openings rate (not seasonally adjusted) rose significantly only in the retail industry and was essentially unchanged in natural resources and mining; real estate and rental and leasing; educational services; and other services. In the remaining 13 industries, the job openings rate fell significantly over the year. All four regions experienced a significant decline in the job openings rate over the year.
Hires
Hires fell sharply in November to 3.5 million, down 607,000 from October and 1.1 million from a year ago. The overall hires rate dropped to 2.6 percent in November due to declines in the rates for manufacturing; trade, transportation, and utilities; leisure and hospitality; and government. Regionally, the hires rate fell significantly in November in three of the four regions-Midwest, Northeast, and South. No industry or region experienced a significant increase in the hires rate in November.
Over the past 12 months, the hires rate did not increase significantly in any industry or region but decreased for total nonfarm and total private and in most industries, including construction; durable goods manufacturing; nondurable goods manufacturing; retail trade; real estate and rental and leasing; professional and business services; health care and social assistance; arts, entertainment, and recreation; accommodation and food services; federal government; and state and local government. In the remainder of the industries the hires rate decreased, but not significantly. In all four regions, the hires rate dropped significantly over the past 12 months.
Separations
The total separations, or turnover, rate was essentially unchanged in November from October and from a year ago. The quits rate can serve as a barometer of workers' ability to change jobs. The quits rate fell in November to a new series low of 1.4 percent; the prior low was 1.5 percent, occurring in several months in 2003. Comparing November 2008 to November 2007, the quits rate was significantly lower for total nonfarm and total private and in many industries, including durable goods manufacturing; nondurable goods manufacturing; retail trade; professional and business services; healthcare and social assistance; arts, entertainment, and recreation; accommodation and food services; and state and local government. Regionally, the quits rate fell over the year in all four regions. The quits rate did not rise significantly over the past 12 months in any industry or region.
The other two components of total separations-layoffs and discharges, and other separations-are not seasonally adjusted. In November, the layoffs and discharges rate (1.6 percent) and level (2.1 million) were higher than a year earlier due to increases in construction; durable goods manufacturing; information; and finance and insurance. The layoffs and discharges rate declined over the year in other services and in federal government. The other separations rate (0.2 percent) and level (285,000) were unchanged from a year earlier at the total nonfarm level.
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 varied over time and has been trending downward from a high of 61 percent in December 2006. Quits accounted for only 43 percent of total separations in November 2008, a new series low. The prior minimum was 50 percent, occurring in June 2003 and again in December 2003.
