Ratio:
| Job Openings | Hires | Separations |
| 5.5 million | 5.0 million | 5.0 million |
As you look at these seemingly good numbers note that we net 0 increase as hires are higher equal to separation in May. What does that mean? It means supply and demand is super tough if you are trying to hire folks.
The numbers are looking good once again. However, please do your due diligence and know that these numbers don’t necessarily talk about the people that have taken themselves out of the workforce or are underemployed.*
Summary
The number of job openings decreased to 5.5 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today. Hires and separations were both little changed at 5.0 million. Within separations, the quits rate was 2.0 percent and the layoffs and discharges rate was 1.2 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by four geographic regions.
Job Openings
Job Openings decreased in May by 345,000 to 5.5 million. The prior 3-month average change in job openings was +80,000. The job openings rate in May 2016 was 3.7 percent. The number of job openings decreased for total private and was little changed for government. Job openings decreased in a number of industries, with the largest changes occurring in wholesale trade (-104,000), other services (-98,000), and real estate and rental and leasing (-53,000). In the regions, job openings decreased in the South and the Midwest.
Hires
The number of hires was little changed at 5.0 million in May. The hires rate was 3.5 percent. The number of hires was little changed for total private and for government. Hires were little changed in all industries and in all regions in May.
Separations
Total separations includes quits, layoffs and discharges, and other separations. Total separations is 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 includes separations due to retirement, death, and disability, as well as transfers to other locations of the same firm.
There were 5.0 million total separations in May, little changed from April. The total separations rate in May was 3.4 percent. The number of total separations was little changed over the month for total private and for government. In May, total separations decreased in state and local government education (-17,000) and in federal government (-8,000). The number of total separations was little changed over the month in all four regions.
The number of quits was little changed in May at 2.9 million. The quits rate was 2.0 percent. Over the month, the number of quits was little changed for total private and for government. By industry, quits increased in educational services (+17,000). The number of quits increased in the Northeast region.
There were 1.7 million layoffs and discharges in May, little changed from April. The layoffs and discharges rate was 1.2 percent. The number of layoffs and discharges was little changed over the month for total private and for government. Layoffs and discharges declined in state and local government education (-15,000) and in mining and logging (-9,000). The number of layoffs and discharges was little changed over the month in all four regions.
The number of other separations was little changed for total nonfarm, total private, and government in May. Other separations increased in professional and business services (+29,000) and in educational services (+4,000). Other separations decreased in information (-6,000) and in federal government (-5,000). Other separations were little changed over the month 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 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 May, hires totaled 62.3 million and separations totaled 59.8 million, yielding a net employment gain of 2.5 million. These totals include workers who may have been hired and separated more than once during the year.
For the full report: http://www.bls.gov/news.release/jolts.nr0.htm
