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Job Openings and Labor Turnover Summary

On the last business day of August, the number of job openings in the U.S. was little changed at a series low level of 2.4 million, the U.S. Bureau of Labor Statistics reported today. The hires rate was little changed and remained low at 3.1 percent in August. The total separations rate was little changed and remained low at 3.3 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
The job openings rate was unchanged in August at a rate of 1.8 percent. The number of job openings has fallen by 2.4 million, or 50 percent, since the most recent peak in June 2007. The job openings rate was little changed in August in all industries and regions.

Over the 12 months ending in August, the job openings rate (not seasonally adjusted) decreased for total nonfarm, total private, government, the majority of industries, and all four regions. The rate was little changed in construction; wholesale trade; real estate and rental and leasing; educational services; and other services.

Hires
The hires level was little changed at 4.0 million in August but has declined by 1.6 million, or 28 percent, since the most recent peak in July 2006. The hires rate was low in August at 3.1 percent and little changed from July. The hires rate was little changed in August in all industries. The hires rate decreased over the month in the West and was little changed in the remaining regions.

Over the 12 months ending in August, the hires rate (not seasonally adjusted) declined for total nonfarm, total private, and government. The hires rate decreased for mining and logging; construction; retail trade; finance and insurance; educational services; and state and local government. The hires rate fell over the past 12 months in the West and was little changed in the remaining regions.

Separations
The total separations, or turnover, rate was little changed in August and remained low at 3.3 percent. The total separations rate (not seasonally adjusted) decreased over the 12 months ending in August for total nonfarm and total private. Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements).

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. The rate was little changed in August at 1.3 percent. The quits level was 1.7 million in August, which is 45 percent lower than the most recent peak in December 2006.

Over the 12 months ending in August, the quits rate (not seasonally adjusted) was lower for total nonfarm, total private, government, the majority of industries, and all four regions. The industries for which the quits rate was little changed over the year include transportation, warehousing, and utilities; information; finance and insurance; real estate and rental and leasing; arts, entertainment and recreation; and federal government.

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. The layoffs and discharges level for total nonfarm, total private, and government was little changed in August at 2.3 million, 2.2 million, and 135,000 respectively. The corresponding layoffs and discharges rates were 1.8 percent, 2.0 percent, and 0.6 percent. The number of layoffs and discharges in August was 46 percent higher than the recent low point in January 2006.

The layoffs and discharges rate (not seasonally adjusted) was little changed over the 12 months ending in August for total nonfarm and total private and increased for government. The layoffs and discharges rate rose in mining and logging; construction; nondurable goods manufacturing; and state and local government. The layoffs and discharges rate increased in the Midwest and was little changed in the remaining regions.

The other separations series is not seasonally adjusted. In August, there were 321,000 other separations for total nonfarm, 263,000 for total private, and 58,000 for government. Compared to August 2008, the number of other separations was little changed for total nonfarm, total private, and government.

The total separations level is influenced by the relative contribution of its three components—quits, layoffs and discharges, and other separations. The percentage of total separations at the total nonfarm level attributable to the individual components has varied over time. The proportion of separations due to quits declined from 61 percent in January 2007 to a series low of 38 percent in April 2009. It then rose slightly and stood at 41 percent in August 2009. The proportion of layoffs and discharges reached a series high of 55 percent in July 2009 then dropped slightly to 54 percent in August 2009.

Net Change in Employment
Over the 12 months ending in August, hires totaled 50.9 million and separations totaled 56.1 million, yielding a net employment loss of 5.2 million.

Compromise
There was bad news and then there was good news.

Yesterday we learned that in January, the country suffered its largest one-month job loss in 34 years.

But last night, the Senate struck a compromise on the economic recovery plan and put us on our way to giving the economy the short-term jolt and long-term investments it needs.

“Americans across this country are struggling, and they are watching to see if we’re equal to the task before us,” the President says in this morning’s Weekly Address. “Let’s show them that we are.”

REMARKS OF PRESIDENT BARACK OBAMA
WEEKLY ADDRESS
The White House
Saturday, February 7, 2009

Yesterday began with some devastating news with regard to our economic crisis. But I’m pleased to say it ended on a more positive note.

In the morning, we received yet another round of alarming employment figures – the worst in more than 30 years. Another 600,000 jobs were lost in January. We’ve now lost more than 3.6 million jobs since this recession began.

But by the evening, Democrats and Republicans came together in the Senate and responded appropriately to the urgency this moment demands.

In the midst of our greatest economic crisis since the Great Depression, the American people were hoping that Congress would begin to confront the great challenges we face. That was, after all, what last November’s election was all about.

Legislation of such magnitude deserves the scrutiny that it’s received over the last month, and it will receive more in the days to come. But we can’t afford to make perfect the enemy of the absolutely necessary. The scale and scope of this plan is right. And the time for action is now.

Because if we don’t move swiftly to put this plan in motion, our economic crisis could become a national catastrophe. Millions of Americans will lose their jobs, their homes, and their health care. Millions more will have to put their dreams on hold.

Let’s be clear: We can’t expect relief from the tired old theories that, in eight short years, doubled the national debt, threw our economy into a tailspin, and led us into this mess in the first place. We can’t rely on a losing formula that offers only tax cuts as the answer to all our problems while ignoring our fundamental economic challenges – the crushing cost of health care or the inadequate state of so many schools; our addiction to foreign oil or our crumbling roads, bridges, and levees.

The American people know that our challenges are great. They don’t expect Democratic solutions or Republican solutions – they expect American solutions.

From the beginning, this recovery plan has had at its core a simple idea: Let’s put Americans to work doing the work America needs done. It will save or create more than 3 million jobs over the next two years, all across the country – 16,000 in Maine, nearly 80,000 in Indiana – almost all of them in the private sector, and all of them jobs that help us recover today, and prosper tomorrow.

Jobs that upgrade classrooms and laboratories in 10,000 schools nationwide – at least 485 in Florida alone – and train an army of teachers in math and science.

Jobs that modernize our health care system, not only saving us billions of dollars, but countless lives.

Jobs that construct a smart electric grid, connect every corner of the country to the information superhighway, double our capacity to generate renewable energy, and grow the economy of tomorrow.

Jobs that rebuild our crumbling roads, bridges and levees and dams, so that the tragedies of New Orleans and Minneapolis never happen again.

It includes immediate tax relief for our struggling middle class in places like Ohio, where 4.5 million workers will receive a tax cut of up to $1,000. It protects health insurance and provides unemployment insurance for those who’ve lost their jobs. And it helps our states and communities avoid painful tax hikes or layoffs for our teachers, nurses, and first responders.

That’s what is at stake with this plan: putting Americans back to work, creating transformative economic change, and making a down payment on the American Dream that serves our children and our children’s children for generations to come.

Americans across this country are struggling, and they are watching to see if we’re equal to the task before us. Let’s show them that we are. And let’s do whatever it takes to keep the promise of America alive in our time.

Thank you.

Department Of Labor — Nonfarm payroll employment declined sharply in December, and the unemployment rate rose from 6.8 to 7.2 percent. Payroll employment fell by 524,000 over the month and by 1.9 million over the last 4 months of 2008. In December, job losses were large and widespread across most major industry sectors.

In December, the number of unemployed persons increased by 632,000 to 11.1 mil-
lion and the unemployment rate rose to 7.2 percent. Since the start of the reces-
sion in December 2007, the number of unemployed persons has grown by 3.6 million,
and the unemployment rate has risen by 2.3 percentage points. (See table A-1.)