U.S. Job Openings and Labor Turnover: August 2004

Note: This release from the Bureau of the Labor Statistics has been edited for length. You can find the original at http://www.bls.gov/news.release/jolts.nr0.htm.

U.S. JOB OPENINGS AND LABOR TURNOVER: AUGUST 2004

The job openings, hires, and total separations rates showed little or no change from July to August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings rate was unchanged at 2.4 percent. The hires rate was essentially unchanged at 3.3 percent, and the total separations rate remained at 3.1 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector by industry and geographic region.

Job Openings

On the last business day of August 2004, there were 3.2 million job openings in the United States, and the job openings rate was 2.4 percent. The job openings rate has generally trended upward over the last 12 months. In August, the job openings rate showed little or no change for the major industry categories.

Hires and Separations

The hires rate (the number of hires during the month divided by employment) was 3.3 percent in August, little changed from a month earlier. Hires are any additions to the payroll during the month. The hires rate increased in education and health services over the month, while other major industries showed little or no change in their hires rates. The hires rate in the West increased from a month earlier.

The total separations, or turnover, rate (the total number of separations during the month divided by employment) was 3.1 percent in August, unchanged from the month before. The total separations rate has been relatively unchanged since December 2001, ranging from 2.9 percent to 3.3 percent. Separations are terminations of employment that occur at any time during the month. In August, the total separations rate decreased in government and showed little or no change for all other major industry categories.

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 1.7 percent in August. The quits rate increased in construction and decreased in education and health services and government in over the month.

Hires and separations help show dynamic flows in the labor market. Over the last 12 months, hires have averaged 4.2 million per month and separations have averaged 4.0 million per month.