Job openings little changed at 4.6 million in May

Hires and separations hold steady

WASHINGTON (July 8, 2014) — There were 4.6 million job openings on the last business day of May, little changed from 4.5 million in April, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.4 percent) and separations rate (3.2 percent) were essentially unchanged in May. Within separations, the quits rate (1.8 percent) was unchanged and the layoffs and discharges rate (1.1 percent) was little changed. 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.

Job openings

There were 4.6 million job openings in May, little changed from 4.5 million in April. The number of job openings was also little changed for total private and government. The job openings level increased for nondurable manufacturing and for health care and social assistance in May, while it decreased for retail trade and for arts, entertainment, and recreation. The number of job openings was little changed in all four regions in May.

Over the 12 months ending in May, the number of job openings (not seasonally adjusted) rose for total nonfarm, total private, and government. Over the year, the job openings level increased in nearly half of the industries and in all four regions.

Hires

There were 4.7 million hires in May, little changed from April. The number of hires was little changed for total private and government, and in all industries and regions.

Over the 12 months ending in May, the number of hires (not seasonally adjusted) was little changed for total nonfarm, total private, and government. The hires level increased over the year in mining and logging and in retail trade, but decreased in finance and insurance. The number of hires was little changed in all four regions.

Separations

Total separations includes quits, layoffs and discharges, and other separations. Total separations is 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, and disability, as well as transfers to other locations of the same firm.

There were 4.5 million total separations in May, little changed from April. The number of total separations was little changed for total private and government.

The quits rate was unchanged at 1.8 percent in May. The rate also was essentially unchanged for total private (2.1 percent) and unchanged for government (0.6 percent). The quits rate was little changed over the month in all industries and in all four regions.

The number of quits (not seasonally adjusted) increased over the 12 months ending in May for total nonfarm and total private and was little changed for government. The number of quits increased over the year in wholesale trade, retail trade, and in accommodation and food services while decreasing in finance and insurance. In the regions, the number of quits rose over the year in the Midwest and South.

The layoffs and discharges rate was little changed in May at 1.1 percent. The rate was little changed over the month for total private (1.3 percent) and unchanged for government (0.4 percent). The layoffs and discharges rate was essentially unchanged in all four regions. Seasonally adjusted estimates of layoffs and discharges are not available for individual industries.

The layoffs and discharges level (not seasonally adjusted) was little changed over the 12 months ending in May for total nonfarm, total private, and government. The number of layoffs and discharges increased over the year in mining and logging and decreased in federal government. The number of layoffs and discharges fell in the Midwest over the year.

In May, there were 392,000 other separations for total nonfarm, little changed from April. The number of other separations for total private was little changed over the month at 319,000 and rose to 73,000 for government. (See table 6.) Seasonally adjusted estimates of other separations are not available for individual industries or regions. Over the 12 months ending in May, the number of other separations (not seasonally adjusted) was little changed for total nonfarm and total private, and was up for government.

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 May 2014, hires totaled 55.3 million and separations totaled 53.0 million, yielding a net employment gain of 2.3 million. These figures include workers who may have been hired and separated more than once during the year.