1.8 Million Jobs Added June 2011-12; Currently 3.8 Million Job Openings

Large numbers of hires and separations (retirement, quit, fired, etc.) 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 2012, hires totaled 51.3 million and separations totaled 49.6 million, yielding a net employment gain of 1.8 million. These figures include workers who may have been hired and separated more than once during the year.

There were 3.8 million job openings on the last business day of June, little changed from 3.7 million in May, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.3 percent) and separations rate (3.2 percent) were essentially unchanged in June. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by geographic region.

Job Openings

The number of job openings in June was 3.8 million, little changed from May. Job openings were little changed in all industries and regions. The level of total nonfarm job openings in June was up from 2.4 million at the end of the recession in June 2009. (Recession dates are determined by the National Bureau of Economic Research.)

The number of job openings in June (not seasonally adjusted) increased over the year for total nonfarm and total private. The number of job openings for government was little changed. Job openings increased over the year for several industries and the Midwest, Northeast and South regions.

Hires

In June, the hires rate was essentially unchanged at 3.3 percent for total nonfarm. The hires rate was little changed in all industries and regions. The number of hires in June was 4.4 million, up from 3.7 million at the end of the recession in June 2009.

Over the 12 months ending in June, the hires rate (not seasonally adjusted) was little changed for total nonfarm and total private but increased for government. The hires rate was little changed in all industries and regions over the year.

Separations

The total separations figure includes quits, layoffs and discharges, and other separations. Total separations is also 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.

The total separations rate was essentially unchanged for total nonfarm, total private, and government in June. Over the year, the total separations rate (not seasonally adjusted) was essentially unchanged for total nonfarm, total private, and government.

In June, the quits rate was unchanged for total nonfarm, total private, and government. The number of quits was 2.1 million in June, up from 1.8 million at the end of the recession in June 2009.

The number of quits (not seasonally adjusted) in June increased over the year for total nonfarm, total private, and government. The number of quits increased over the year in several industries and in the South.

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels and for the four regions. The layoffs and discharges rate was essentially unchanged in June for total nonfarm and total private and unchanged for government. The layoffs and discharges rate decreased in the South. The number of layoffs and discharges for total nonfarm was 1.8 million in June, down from 2.1 million at the end of the recession in June 2009.

The layoffs and discharges level (not seasonally adjusted) was little changed for total nonfarm and total private but decreased for government over the 12 months ending in June 2012. The number of layoffs and discharges was essentially unchanged over the year in all four regions.

The other separations component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. In June 2012, there were 357,000 other separations for total nonfarm, little changed from the previous month. Over the 12 months ending in June 2012, the number of other separations for total nonfarm was little changed.