The number of job openings was little changed at 6.7 million on the last business day of June, the U.S. Bureau of Labor Statistics reported this week. Over the month, hires and separations were little changed at 5.7 million and 5.5 million, respectively. Within separations, the quits rate was unchanged at 2.3 percent and the layoffs and discharges rate was little changed at 1.2 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.
On the last business day of June, the job openings level was little changed at 6.7 million. The job openings rate was 4.3 percent. The number of job openings was little changed for total private and for government. Job openings increased in educational services (+20,000) but decreased in transportation, warehousing, and utilities (-84,000). The number of job openings was little changed in all four regions.
Total separations include quits, layoffs and discharges, and other separations. Total separations are referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.
The number of total separations was little changed at 5.5 million in June. The total separations rate was 3.7 percent. The number of total separations was little changed for total private. Total separations were little changed in all industries and regions.
The number of quits was little changed in June at 3.4 million. The quits rate was 2.3 percent. The number of quits was little changed for total private and for government. Quits fell in educational services (-14,000). The number of quits was little changed in all four regions.
The number of layoffs and discharges was little changed at 1.7 million in June. The layoffs anddischarges rate was 1.2 percent. The number of layoffs and discharges was little changed for total private. Layoffs and discharges increased in health care and social assistance (+36,000). The number of layoffs and discharges was little changed in all four regions.
The number of other separations rose in June (+57,000). The other separations level edged up for total private (+45,000) and increased for government (+13,000). Other separations increased in a number of industries, with the largest increases in finance and insurance (+19,000) and other services (+13,000). Other separations were essentially unchanged in all four regions.
Net Change in Employment
Large numbers of hires and separations occur every month throughout the business cycle. Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining.
Conversely, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising. Over the 12 months ending in June, hires totaled 66.6 million and separations totaled 64.1 million, yielding a net employment gain of 2.5 million. These totals include workers who may have been hired and separated more than once during the year.