Job Openings 10.073M in June, above consensus

The number of job openings increased to a series high of 10.1 million on the last business day of June, the U.S. Bureau of Labor Statistics reported today. Hires rose to 6.7 million and total separations edged up to 5.6 million. Within separations, the quits rate increased to 2.7 percent. The layoffs and discharges rate was unchanged at 0.9 percent, matching the series low reached last month. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, by four geographic regions, and by establishment size class.

Job Openings

On the last business day of June, the job openings level increased to a series high of 10.1 million (+590,000). The job openings rate rose to 6.5 percent. Job openings increased in several industries, with the largest increases in professional and business services (+227,000); retail trade (+133,000); and accommodation and food services (+121,000). The number of job openings increased in the South region.

Hires

In June, the number and rate of hires increased to 6.7 million (+697,000) and 4.6 percent, respectively. Hires increased in retail trade (+291,000); state and local government education (+94,000); and durable goods manufacturing (+36,000). The number of hires increased in the South and Midwest regions.

Separations

Total separations includes quits, layoffs and discharges, and other separations. 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 includes separations due to retirement, death, disability, and transfers to other locations of the same firm.

In June, the number of total separations edged up to 5.6 million (+254,000). The rate was little changed at 3.8 percent. The total separations level increased in professional and business services (+124,000); durable goods manufacturing (+48,000); and state and local government, excluding education (+30,000). Total separations decreased in state and local government education (-43,000). Total separations was little changed in all four regions.

 

In June, the quits level and rate increased to 3.9 million (+239,000) and 2.7 percent, respectively. Quits increased in professional and business services (+72,000); durable goods manufacturing (+47,000); and state and local government, excluding education (+33,000). Quits decreased in state and localgovernment education (-26,000). The number of quits increased in the South region.

In June, the number of layoffs and discharges was little changed at 1.3 million, a series low. The rate was unchanged at 0.9 percent, matching last month’s series low. Layoffs and discharges were little changed in all four regions.

The number of other separations increased in June to 405,000 (+58,000). Other separations increased in professional and business services (+43,000) and in durable goods manufacturing (+6,000). Other separations decreased in arts, entertainment, and recreation (-4,000). The other separations level waslittle changed in all four regions.

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 eclining.

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, hires totaled 72.1 million and separations totaled 65.2 million, yielding a net employment gain of 6.9 million. These totals include workers who may have been hired and separated more than once during the year.