1.9 Million Net New Jobs Created in 2012

There were 3.7 million job openings on the last business day of November, unchanged from October, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.2 percent) and separations rate (3.1 percent) also were unchanged in November. 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 November was 3.7 million, unchanged from October. The number of openings increased in retail trade and was little changed in all remaining industries and in all four regions in November. The level of total nonfarm job openings was 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 November (not seasonally adjusted) rose over the year for total nonfarm and total private but was little changed for government. Job openings increased over the year for retail trade and for health care and social assistance. The Midwest and Northeast regions experienced an increase in job openings over the 12 months ending in November.

Hires

In November, the hires rate was unchanged at 3.2 percent. The hires rate increased in government over the month. The rate was little changed in all four regions. The number of hires in Noquit vember was 4.3 million, up from 3.7 million at the end of the recession in June 2009.

Over the 12 months ending in November, the hires rate (not seasonally adjusted) was unchanged for total nonfarm and total private and was little changed for government. The hires rate decreased in arts, entertainment, and recreation over the 12 months ending in November and was little changed in all four regions.

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.

In November, the quits rate was unchanged at 1.6 percent. The quits rate was little changed for total private and government. The number of quits was 2.1 million in November compared to 1.8 million at the end of the recession in June 2009.

The number of quits (not seasonally adjusted) was little changed over the 12 months ending in November for total nonfarm and total private. The number of quits rose in government. Quits increased over the year in transportation, warehousing, and utilities and in state and local government. Quits levels were essentially unchanged over the year for all four regions.

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 little changed in November at 1.2 percent. The rate was also little changed for total private and government and in all four regions. The number of layoffs and discharges for total nonfarm was 1.7 million in November, 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, total private, and government over the 12 months ending in November 2012. Over the year, the number of layoffs and discharges rose in construction but fell in arts, entertainment, and recreation. The number of layoffs and discharges was little changed over the year in all four regions.

In November, there were 344,000 other separations for total nonfarm, little changed from the previous month. The number of other separations was also little changed over the year.

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 November 2012, hires totaled 51.7 million and separations totaled 49.9 million, yielding a net employment gain of 1.9 million. These figures include workers who may have been hired and separated more than once during the year.