Job Openings and Labor Turnover Summary Released for December 2021

On Tuesday (2-1-22), the U.S. Bureau of Labor Statistics (BLS) published the Job Openings and Labor Turnover Summary (JOLTS) for December 2021. According to the JOLTS report, as of the last day in December, the number of job openings was little changed at 10.9 million. The job opening rate was unchanged at 6.8%, and the number of job openings was little changed in all four reporting regions.

The number of hires in December decreased to 6.3 million, or -333,000. The hire rate was little changed at 4.2%. Nearly half of all hire’s decreases came in professional and business services (-159,000).

The total number and rate of separations decreased to 5.9 million, down -305,000 or 4.0%. Among the industries, only the federal government had an increase in total separations (+15,000).

The total number of quits in December inched lower to 4.3 million, down -161,000 or 2.9%, following a series high in November. Quits decreased in health care and social assistance (-89,000), accommodation and food services (-64,000), and construction (-44,000). Quits increased in nondurable goods manufacturing (+19,000).

The total number of layoffs and discharges were little changed at 1.2 million, or 0.8% (both are series lows). Layoffs and discharges decreased in retail trade (-67,000) but increased in the federal government (+14,000).

The BLS notes that a 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 December 2021, hires totaled 75.3 million and separations totaled 68.9 million, yielding a net employment gain of 6.4 million. These totals include workers who may have been hired and separated more than once during the year.