Job Openings
In September, the job openings rate remained at 2.9 percent. The rate has been 2.9 percent for 7 of the past 8 months. Job openings include only those jobs still open on the last business day of the month. The job openings rate changed significantly in September only in the construction industry, rising from 1.9 in August to 2.4 in September. The job openings rate did not change significantly in any region. The seasonally adjusted job openings rate was highest in September in the accommodations and food services industry (4.6 percent).
Over the year, the job openings rate rose in construction (2.4 percent); nondurable manufacturing (2.7 percent); and accommodations and food services (4.5 percent). The rate fell over the year in natural resources and mining (1.7 percent); transportation, warehousing, and utilities (2.7 percent); information (3.0 percent); professional and business services (3.7 percent); and state and local government (2.1 percent). Regionally, the job openings rate fell over the year in the Northeast (2.7 percent).
Hires
The hires rate was little changed at 3.4 percent in September. Hires are any additions to the payroll during the month. In September, the hires rate changed significantly only in the education and health services sector, in which it fell. As in nearly every month, the seasonally adjusted hires rate was highest in September in accommodations and food services (6.3 percent).
From September 2006 to September 2007, the hires rate increased in arts, entertainment, and recreation (6.4 percent) and in federal government (4.8 percent). The hires rate decreased over the year in transportation, warehousing, and utilities (3.0 percent); information (2.0 percent); professional and business services (4.6 percent); health care and social assistance (2.8 percent); and state and local government (2.3 percent). Regionally, the hires rate fell over the year in the South (3.8 percent) and in the West (3.7 percent).
Separations
The total separations, or turnover, rate was unchanged at 3.2 percent in September. Separations are terminations of employment that occur at any time during the month. Over the month, the separations rate changed significantly only in state and local government, in which it declined. The separations rate did not change significantly in any region over the month. From September 2006 to September 2007, the total separations rate increased in the finance and insurance industry (2.4 percent) and in the federal government (4.3 percent). Over the year, the total separations rate decreased only in state and local government (1.4 percent). Geographically, the total separations rate declined in the Northeast (3.1 percent).
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 in September. The quits rate changed significantly over the month only in the accommodations and food services industry. None of the regions experienced a significant change in the quits rate over the month. As in every month since the series began in December 2000, the seasonally adjusted quits rate was highest in September in the accommodations and food services industry (3.5 percent).
Over the year, the quits rate did not rise significantly in any industry but did fall in many industries, including wholesale trade (1.2 percent); information (1.4 percent); real estate and rental and leasing (1.6 percent); health care and social assistance (1.5 percent); accommodations and food services (4.1 percent); and federal government (1.5 percent). Geographically, the quits rate fell over the year in the Northeast (1.6 percent) and South (2.1 percent).
The other two components of total separations-layoffs and discharges, and other separations-are not seasonally adjusted. For September, the layoffs and discharges rate (1.3 percent) and level (1.9 million) were unchanged from a year earlier. The layoffs and discharges rate in September 2007 was highest in arts, entertainment, and recreation (6.9 percent). Over the year, the other separations rate (0.2 percent) and level (304,000) were essentially unchanged.
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 September 2007, these 5 industries produced 34.0 million hires and 32.2 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.
Although the month-to-month changes in job openings and turnover data are often small, some industries are experiencing significant over-the-year change. From September 2006 to September 2007, the information industry had decreases in the job openings, hires, and quits rates. Experiencing a decrease in the job openings and hires rates over the year were transportation, warehousing, and utilities; professional and business services; and state and local government.
