32  Monthly Labor Review • May 20

JOLTS Annual Story

J

ob openings and hires declined during 

2008. The number of job openings, a stock 

measure referenced to the last day of the 

month, dropped from 4.4 million, seasonally 

adjusted, in December 2007 to 3.2 million in 

December 2008 after trending down steadily 

over the year. Hires, which is a measure of 

worker flows, also trended down steadily over 

the year. Hires dropped from 5.1 million, seasonally adjusted, in December 2007 to a low 

of 4.2 million in November 2008 and then increased to 4.5 million in December 2008. Job 

openings and hires also declined in 2007.1

The total separations level which was 5.0 

million, seasonally adjusted, in December 

2007, fluctuated over the course of the year 

reaching a high of 5.2 million in April 2008 

and returned to 5.0 million in December 2008. 

The level of layoffs and discharges increased 

from 1.8 million in December 2007 to 2.4 

million in December 2008 and the level of 

quits dropped from 2.9 million in December 

2007 to 2.1 million in December 2008. 

In December 2008, the National Bureau of 

Economic Research announced that the current recession had begun in December 2007.2 

The downward trend in job openings, hires, 

and quits, and the upward trend in layoffs and 

discharges are consistent with recessionary 

trends in other economic statistics. Recessionary trends are evident in increasing unemployment and declining employment levels. For 

example, the unemployment rate, 4.9 percent 

in December 2007, climbed to 7.2 by of December 2008.3

 Also, since December 2007, 

Katherine Klemmer is an

economist in the Division

of Administrative Statistics and Labor Turnover,

Office of Employment

and Unemployment

Statistics, Bureau of

Labor Statistics. Klemmer.

Katherine@bls.gov

Job openings and hires 

decline in 2008

Downward trends in job openings, hires, and quits

were geographically widespread and affected almost

every industry

nonfarm employment dropped from 138 million to 135 million for the month of December 

2008, a net employment loss of approximately 

3 million over the course of 2008.4 Chart 1 

shows JOLTS total private job openings compared to CES total private employment levels 

since December 2000. The job openings leveled off and began to fall prior to December 

2007 when employment levels began to fall.

The Job Openings and Labor Turnover 

Survey program (JOLTS) measures job openings, hires, and separations on a monthly basis 

by industry and geographic region. The JOLTS 

statistics gauge labor demand by collecting 

data monthly from a sample of approximately 

16,000 nonfarm business establishments and 

is aligned monthly with the BLS Current Employment Statistics (CES) program. Published 

JOLTS data are available from December 2000 

forward. In 2008, JOLTS added seasonally-adjusted arts, entertainment, and recreation series 

for all data types and seasonally-adjusted layoffs and discharges for the Total Nonfarm, Total Private, and Government industries. Also, 

the entire JOLTS data series was retabulated on 

the basis of new methodology concurrent with 

the release of the January 2009 preliminary estimates.5

 Unless otherwise noted, JOLTS data 

used in this report are seasonally adjusted.

National level trends: job openings

The job openings rate at the national level 

experienced a downward trend for 2008 and 

Katherine Klemmer
Monthly Labor Review • May 2009  

 Chart 1. JOLTS total private job openings and CES total private employment, seasonally adjusted, December 

2000–December 2008 

5,000

4,750

4,500

4,250

4,000

3,750

3,500

3,250

3,000

2,750

2,500

2,250

2,000

117,000

116,000

115,000

114,000

113,000

112,000

111,000

110,000

109,000

108,000

107,000

106,000

105,000

Employment

Job openings

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

Job openings

(in thousands)

Employment

(in thousands)

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

reached a low in December 2008 of 2.3 percent. Fewer job 

openings mean fewer opportunities for job-seekers to find 

employment. An economic expansion is characterized by 

a rising number of job openings and falling unemployment while an economic contraction is characterized by 

rising unemployment and a falling number of job openings. Chart 2 illustrates the inverse relationship between 

job openings and unemployment.6 As the economy began 

to weaken prior to the beginning of the current recession, 

unemployment climbed while job openings dropped. 

The ratio between unemployment and job openings is 

an indication of how the number of unemployed persons 

per job opening changes over time. The ratio increased 

from mid-2006 where it hovered around 1.5 unemployed 

persons per job opening to a ratio of approximately 3.5 

unemployed persons per job opening in December 2008.7

(See chart 3.)

National level trends: hires

Hires are defined as the total number of additions to the 

payroll occurring at any time during the reference month. 

In November 2008, hires reached a series low of 4.2 

million. The series declined from a high of 5.0 million 

in February 2008 to 4.2 million in November 2008 and 

then increased in December 2008 to 4.5 million hires. The 

downward trend that concluded in November 2008 began 

in mid-2006. The annual hires rate dropped to a series low 

of 41.2 percent in 2008. (See table 1.)

When comparing hires to total separations, it is indicative of an economic contraction when total separations 

exceed hires. For 11 consecutive months, from February 2008 through December 2008, separations exceeded 

hires. Prior to that point, hires exceeded separations in 49 

of the 53 months from September 2003 through January 

2008. None of the four exceptions occurred in consecutive 

months. (See chart 4.)

National level trends: total separations

Total separations is defined as the total number of terminations of employment occurring at any time during the 

reference month and includes quits, layoffs and discharges, and other separations such as retirements. In 2008, 

monthly total separations peaked in April at 5.2 million, 

dropped to 4.8 million in July, and then trended upward 
JOLTS Annual Story

34  Monthly Labor Review • May 20

 Chart 3. Ratio of CPS unemployment to JOLTS job openings, seasonally adjusted, December 2000–December 2008

3.5

3.0

2.5

2.0

1.5

1.0

Unemployed workers

per job opening

3.5

3.0

2.5

2.0

1.5

1.0

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

Unemployed workers

per job opening

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

 Chart 2. JOLTS job openings rate and CPS unemployment rate, seasonally adjusted, December 2000–

December 2008

Job openings

rate

4.0

3.5

3.0

2.5

2.0

1.5

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

Unemployment

rate

U

J

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.
Monthly Labor Review • May 2009  

Table 1. Annual hires rates 1 and levels 2

Rates (percent) Levels (in thousands)

 Industry and region

2007 2008 Change Percent 2007 2008 Change Percent 

 change change

Total .......................................................................... 46.1 41.2 – 4.9 –10.6 63,381 56,496 –6,885 –10.9

 Industry      

Total private........................................................... 51.0 46.1 – 4.9 – 9.6 58,833 52,807 –6,026 –10.2

Natural resources and mining..................... 47.9 49.4 1.5 3.1 347 

Construction...................................................... 63.1 64.0 .9 1.4 4,811 4,618 –

Manufacturing .................................................. 33.3 27.2 – 6.1 –18.3 4,617 3,651 –966 –

Durable goods............................................... 30.5 24.6 – 5.9 –19.3 2,687 2,089 –598 –

Nondurable goods....................................... 38.1 31.5 – 6.6 –17.3 1,930 1,561 –369 –

Trade, transportation, and utilities............ 49.6 44.0 – 5.6 –11.3 13,215 11,602 –1,613 –12.2

Wholesale trade ............................................ 36.8 31.7 – 5.1 –13.9 2,212 1,892 –320 –

Retail trade...................................................... 58.8 51.3 – 7.5 –12.8 9,121 7,876 –1,245 –

Transportation, warehousing, and

  utilities......................................................... 36.9 36.2 – .7 – 1.9 1,881 1,833 –48

Information ........................................................ 32.4 27.2 – 5.2 –16.0 983 814 –1

Financial activities............................................ 38.0 32.5 – 5.5 –14.5 3,158 2,649 –509 –

Finance and insurance................................ 34.1 28.3 – 5.8 –17.0 2,089 1,704 –385 –

Real estate and rental and leasing ......... 49.3 44.4 – 4.9 – 9.9 1,070 945 –125

Professional and business services............ 64.0 56.9 – 7.1 –11.1 11,475 10,112 –1,363 –11.9

Education and health services. ................... 35.1 34.8 – .3 – .9 6,438 6,55

Educational services.................................... 30.9 30.9 .0 .0 91

Health care and social assistance ........... 35.9 35.5 – .4 – 1.1 5,529 5,616

Leisure and hospitality................................... 83.4 74.0 – 9.4 –11.3 11,194 9,965 –1,229 –11

Arts, entertainment, and recreation...... 83.2 74.8 – 8.4 –10.1 1,639 1,473 –166 –

Accommodations and food services..... 83.4 73.9 – 9.5 –11.4 9,554 8,492 –1,062 –

Other services.................................................... 47.3 44.5 – 2.8 – 5.9 2,600 2,462 –138 –

Government .......................................................... 20.5 16.4 – 4.1 –20.0 4,549 3,688 –861 –

Federal.................................................................. 30.9 12.1 –18.8 –60.8 844 335 –509

State and local ................................................... 19.0 17.0 – 2.0 –10.5 3,705 3,351 –354

 Region 3      

Northeast............................................................ 39.0 36.0 – 3.0 – 7.7 10,010 9,237 –773 – 7.7

South.................................................................... 49.0 42.1 – 6.9 –14.1 24,360 20,846 –3,514

Midwest............................................................... 45.4 40.7 – 4.7 –10.4 14,239 12,690 –1,549 –10.9

West ...................................................................... 47.8 44.6 – 3.2 – 6.7 14,774 13,721 –1,053 – 7.1  

1 The annual hires rate is the number of hires during the entire year as a

percent of annual average employment.

2 The annual hires level is the total number of hires during the enti

year.

3 The States(including the District of Columbia) that comprise the regions

are: Northeast: Connecticut, Maine, Massachusetts, New Hampshire, N

Jersey, New York, Pennsylvania, Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentuck

Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina,

Tennessee, Texas, Virginia, and West Virginia; Midwest: Illinois, Indiana, Iowa,

Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio,

South Dakota, and Wisconsin; West: Alaska, Arizona, California, Colorado,

Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington,

and Wyoming.

to 5.0 million in December. 

The annual total separations rate reached a series low 

of 43.3 percent in 2008. The annual total separations rate 

is the sum of total separations levels for the 12 months of 

the year divided by the annual average employment level 

multiplied by 100. This annual rate has declined for the 

last three years. However, while annual total separations 

rates have decreased over the past three years, the relative 

proportion of annual layoffs and discharges within total 

separations has increased. Layoffs and discharges rose 

from 34 percent of total separations in 2006 (prior to 

the current economic downturn) to 41 percent of total 

separations in 2008. The quits rate dropped from a high 

of 58 percent of total separations in 2006 to 52 percent 

of total separations in 2008, while the other separations 

rate slipped from 8 percent of total separations in 2006 

to 7 percent of total separations in 2008. (See tables 2–5.) 

Note the difference between the composition of total 
JOLTS Annual Story

36  Monthly Labor Review • May 20

Table 2. Annual total separations rates 1 and levels 2

 Rates (percent) Levels (in thousands)

2007 2008 Change Percent 2007 2008 Change Percent 

change change

Total.................................................................................    45.1 43.3 – 1.8 – 4.0 62,104 59,343 –2,761 – 4.4

 Industry      

Total private. ..............................................................    50.1 48.7 – 1.4 – 2.8 57,860 55,808 –2,052 – 3.5

Natural resources and mining.........................    43.0 43.2 .2 .5 31

Construction..........................................................    65.2 72.7 7.5 11.5 4,971 5,242 

Manufacturing ......................................................    35.1 33.3 – 1.8 – 5.1 4,871 4,475 –396 –

Durable goods....................................................    32.7 31.8 – .9 – 2.8 2,880 2,695 –185

Nondurable goods............................................    39.2 35.9 – 3.3 – 8.4 1,988 1,780 –208 –

Trade, transportation, and utilities................    48.4 47.3 – 1.1 – 2.3 12,889 12,488 –401 – 3.1

Wholesale trade .................................................    35.3 35.1 – .2 – .6 2,126 2,093 –

Retail trade...........................................................    57.5 54.9 – 2.6 – 4.5 8,928 8,424 –504 –

Transportation, warehousing, and

utilities.................................................................    36.0 38.9 2.9 8.1 1,835 1,97

Information ............................................................    32.9 29.9 – 3.0 – 9.1 999 897 –1

Financial activities................................................    39.3 35.2 – 4.1 –10.4 3,259 2,870 –389 –

Finance and insurance.....................................    35.6 30.9 – 4.7 –13.2 2,181 1,856 –325 –

Real estate and rental and leasing...............    49.7 47.6 – 2.1 – 4.2 1,078 1,013 –65 –

Professional and business services................    62.3 60.9 – 1.4 – 2.2 11,183 10,823 –360 – 3.2

Education and health services........................    32.3 32.1 – .2 – .6 5,911 6,05

Educational services.........................................    28.9 28.3 – .6 – 2.1 850 

Health care and social assistance.................    32.9 32.9 .0 .0 5,060 5,

Leisure and hospitality.......................................    81.5 75.5 – 6.0 – 7.4 10,938 10,158 –780 – 7.1

Arts, entertainment, and recreation ...........    81.3 76.6 – 4.7 – 5.8 1,601 1,509 –92 –

Accommodations and food services..........    81.5 75.3 – 6.2 – 7.6 9,341 8,648 –693 –

Other services........................................................    46.0 44.6 – 1.4 – 3.0 2,529 2,467 –62 –

     

Government................................................................    19.1 15.7 – 3.4 –17.8 4,242 3,534 –708 –

Federal......................................................................    30.2 11.6 –18.6 –61.6 825 322 –5

State and local.......................................................    17.6 16.3 – 1.3 – 7.4 3,420 3,210 –210 –

     

 Region 3      

Northeast................................................................    37.1 38.0 .9 2.4 9,530 9,7

South ........................................................................    48.0 44.2 – 3.8 – 7.9 23,852 21,891 –1,961 – 8.2

Midwest...................................................................    44.2 41.8 – 2.4 – 5.4 13,862 13,024 –838 – 6.0

West ..........................................................................    48.1 47.8 – .3 – .6 14,857 14,686 –171 –

 Industry and region

1 The annual total separations rate is the number of total separations

during the entire year as a percent of annual average employment.

2 The annual total separations level is the total number of total separations during the entire year.

3 See footnote 3, Ta

separations in 2006, prior to the economic downturn, and 

the composition of total separations in 2008, subsequent 

to the economic downturn, as shown in chart 5.

With the exception of 2007, the JOLTS total separations series has trended closely with CES employment 

annually, increasing and decreasing in a procyclical 

manner in conjunction with increases and decreases in 

employment levels.8 Total separations are procyclical 

with employment in most instances because quits are 

also procyclical. In 2007, however, the quits component 

of total separations decreased while total employment 

continued to increase and the layoffs and discharges 

component of total separations increased.

Quits. Quits are voluntary separations by employees, excluding retirements. During 2008, quits steadily declined 

from a high of 2.9 million in January to a low of 2.1 million in December. The downward trend in quits can be 

explained by worker behavior during an economic slowdown. Individuals are less willing to quit their current job 
Monthly Labor Review • May 2009  

Table 3. Annual quits rates 1 and levels 2

 Rates (percent) Levels (in thousands)

2007 2008 Change Percent 2007 2008 Change Percent

 change change

Total ........................................................................ 25.5 22.6 – 2.9 –11.4 35,103 31,004 –4,099 –11.7

   

 Industry    

Total private....................................................... 28.7 25.6 – 3.1 –10.8 33,095 29,344 –3,751 –11.3

Natural resources and mining................. 25.3 24.2 – 1.1 – 4.3 183 

Construction.................................................. 24.9 23.1 – 1.8 – 7.2 1,903 1,664 –239 –

Manufacturing.............................................. 18.1 14.4 – 3.7 –20.4 2,512 1,929 –583 –

Durable goods........................................... 16.2 12.6 – 3.6 –22.2 1,423 1,072 –351 –

Nondurable goods. .................................. 21.5 17.3 – 4.2 –19.5 1,088 855 –233

Trade, transportation, and utilities........ 28.7 25.9 – 2.8 – 9.8 7,652 6,824 –828 –

Wholesale trade......................................... 19.5 16.8 – 2.7 –13.8 1,170 999 –171

Retail trade .................................................. 35.8 31.7 – 4.1 –11.5 5,553 4,861 –692 –

Transportation, warehousing, and

utilities......................................................... 18.2 19.1 .9 4.9 927

Information.................................................... 19.2 15.5 – 3.7 –19.3 581 465 –1

Financial activities....................................... 22.8 18.8 – 4.0 –17.5 1,896 1,528 –368 –

Finance and insurance ............................ 22.8 17.4 – 5.4 –23.7 1,400 1,047 –353 –

Real estate and rental and leasing...... 23.1 22.6 – .5 – 2.2 500 481

Professional and business services. ...... 32.3 28.9 – 3.4 –10.5 5,797 5,145 –652 –

Education and health services............. 20.4 18.7 – 1.7 – 8.3 3,732 3,531 –201 –

Educational services................................ 14.1 12.7 – 1.4 – 9.9 414 386 –

Health care and social assistance .......... 21.6 19.9 – 1.7 – 7.9 3,315 3,148 –167 –

Leisure and hospitality .............................. 55.4 49.7 – 5.7 –10.3 7,443 6,685 –758 –

Arts, entertainment, and recreation... 32.1 28.9 – 3.2 –10.0 632 570 –

Accommodations and food services. 59.4 53.2 – 6.2 –10.4 6,810 6,115 –695 –

Other services............................................... 25.5 25.1 – .4 – 1.6 1,400 1,387 –

Government...................................................... 9.0 7.4 – 1.6 –17.8 2,008 1,661 –347

Federal............................................................... 10.5 3.8 – 6.7 –63.8 287 105 

State and local................................................ 8.8 7.9 – .9 –10.2 1,722 1,555 

 Region 3    

Northeast......................................................... 18.3 18.0 – .3 – 1.6 4,708 4,616 –92

South ................................................................. 29.1 25.0 – 4.1 –14.1 14,478 12,393 –2,085 –14.4

Midwest............................................................ 24.1 21.8 – 2.3 – 9.5 7,552 6,800 –752 –

West ................................................................... 27.1 23.4 – 3.7 –13.7 8,366 7,191 –1,175 –

1 The annual quits rate is the number of quits during the entire year as a

percent of annual average employment.

2 The annual quits level is the total number of quits during the entire

year.

3 See footnote 3, 

Industry and region

if they believe it will be difficult to find a new job. They 

are also less willing to relocate for new jobs.9 In 2008, this 

downward trend in quits could be tied to the collapse of 

the housing market, high gas prices in the first half of the 

year, and economic uncertainty in general.10 

In December 2008, the Consumer Confidence IndexTM, a leading indicator, reached a historic low of 

38.6,11 down from 90.6 in December 2007. Over time, 

the JOLTS quits rate series has trended closely with the 

Consumer Confidence Index.12 If consumers are not 

confident in the economy, they are less likely to quit 

their jobs. (See chart 6.)

Layoffs and Discharges. Layoffs and discharges are involuntary separations initiated by the employer. While there 

was some fluctuation in the month-to-month levels during 2008, layoffs and discharges have trended up over the 

year. In January 2008, there were 1.8 million layoffs and 

discharges. By December 2008, the number of layoffs and 

discharges rose to 2.4 million. 

Because unemployment insurance claims are usually 

filed after job loss, they trend closely with the layoffs and 

discharges series. Similar to the upward trend in layoffs 

and discharges, unemployment insurance claims rose over 

the course of 2008.13 Chart 7 shows that both series reflect 
JOLTS Annual Story

38  Monthly Labor Review • May 20

Table 4. Annual layoffs and discharges rates 1 and levels 2

Rates (percent) Levels (in thousands)

2007 2008 Change Percent 2007 2008 Change Percent

change change

Total.................................................................................. 16.4 17.8 1.4 8.5 22,539 24,370   1,83

 Industry

Total private................................................................ 18.4 20.2 1.8 9.8 21,176 23,146   1,97

Natural resources and mining.......................... 12.6 15.1 2.5 19.8 91 11

Construction........................................................... 37.3 46.4 9.1 24.4 2,848 3,347   49

Manufacturing ....................................................... 14.1 16.5 2.4 17.0 1,963 2,217   25

Durable goods.................................................... 13.7 16.7 3.0 21.9 1,205 1,413   20

Nondurable goods............................................ 14.9 16.2 1.3 8.7 757 

Trade, transportation, and utilities................. 13.6 16.3 2.7 19.9 821 973 

Retail trade........................................................... 17.7 18.9 1.2 6.8 2,753 2,907 

Transportation, warehousing, and

  utilities............................................................... 13.9 16.0 2.1 15.1 707 811 

Information ............................................................. 10.4 12.2 1.8 17.3 315 365

Financial activities................................................. 13.3 13.5 .2 1.5 1,107 1,100  

Finance and insurance..................................... 9.9 10.6 .7 7.1 605

Real estate and rental and leasing .............. 23.1 21.6 –1.5 – 6.5 500 461   

Professional and business services................. 26.4 28.7 2.3 8.7 4,744 5,110 

Education and health services......................... 9.5 11.0 1.5 15.8 1,737 2,069   

Educational services......................................... 13.2 14.0 .8 6.1 387 

Health care and social assistance ................ 8.8 10.4 1.6 18.2 1,350 1,644   

Leisure and hospitality........................................ 23.6 23.4 – .2 – .8 3,174 3,152   –22 

Arts, entertainment, and recreation........... 46.2 45.6 – .6 –1.3 910 898   

Accommodations and food services.......... 19.7 19.6 – .1 – .5 2,262 2,256   –6 

Other services......................................................... 16.6 17.7 1.1 6.6 914 

   

Government ............................................................... 6.1 5.5 – .6 –9.8 1,364 1,227   –1

Federal...................................................................... 8.2 3.9 – 4.3 –52.4 225 109 

State and local ....................................................... 5.8 5.6 – .2 –3.4 1,137 1,114  

 Region 3

Northeast.............................................................. 15.6 16.9 1.3 8.3 3,996 4,326 

South...................................................................... 15.9 16.5 .6 3.8 7,909 8,162

Midwest ................................................................ 16.8 17.0 .2 1.2 5,276 5,3

West........................................................................ 17.3 21.4 4.1 23.7 5,357 6,582   1,22

1 The annual layoffs and discharges rate is the number of layoffs and discharges during the entire year as a percent of annual average employment.

2 The annual layoffs and discharges level is the total number of layoffs and

discharges during the entire year.

3 See footnote 3, Table 1.

Industry and region

increases beginning well before the start of the recession.

Other Separations. Other separations includes separations due to retirement, transfer to other locations of the 

same firm, death, and disability. Other separations, not 

seasonally adjusted, declined from 334,000 in December 

2007 to 289,000 in December 2008. The annual other 

separations rate also reached a low in 2008 of 2.9 percent 

of annual average employment. This decline in other separations may represent a tendency to forestall retirement 

during a recession.

Regional trends: job openings

Just as job openings at the national level experienced a 

downward trend in 2008, the job openings rates for all 

four regions also experienced downward movements in 

2008. The Midwest regional job openings rate reached a 

low of 1.9 percent in December 2008.

Using Local Area Unemployment Statistics unemployment data, ratios for the number of unemployed persons 

per job opening were computed by region.14 The highest 

ratio is currently in the Midwest where the number of 
Monthly Labor Review • May 2009  

Table 5. Annual other separations rates1 and levels2 

Rates (percent) Levels (in thousands)

2007 2008 Change Percent 2007 2008 Change Percent 

change change

   

Total ........................................................................... 3.2 2.9 – 0.3 – 9.4 4,463 3,969 –494

     

 Industry       

     

Total private ........................................................ 3.1 2.9 – .2 – 6.5 3,591 3,319 

Natural resources and mining................... 4.8 3.6 – 1.2 –25.0 35 

Construction.................................................... 2.9 3.2 .3 10.3 2

Manufacturing................................................ 2.8 2.5 – .3 –10.7 393 

Durable goods............................................ 2.9 2.5 – .4 –13.8 252 

Nondurable goods.................................... 2.8 2.5 – .3 –10.7 142 

Trade, transportation, and utilities.......... 3.6 3.7 .1 2.8 

Wholesale trade.......................................... 2.2 2.0 – .2 – 9.1 134 

Retail trade ................................................... 4.0 4.3 .3 7.5 

Transportation, warehousing, and

utilities......................................................... 3.9 3.9 .0 .0 201

Information...................................................... 3.3 2.3 – 1.0 –30.3 100 

Financial activities......................................... 3.1 3.0 – .1 – 3.2 257 

Finance and insurance ............................. 2.8 2.9 .1 3.6 17

Real estate and rental and leasing....... 3.7 3.4 – .3 – 8.1 80

Professional and business services......... 3.6 3.2 – .4 –11.1 644 

Education and health services.................. 2.4 2.4 .0 .0 

Educational services................................. 1.7 1.6 – .1 – 5.9 50

Health care and social assistance......... 2.6 2.6 .0 .0 

Leisure and hospitality ................................ 2.4 2.4 .0 .0 

Arts, entertainment, and recreation.... 3.0 2.1 – .9 –30.0 59 

Accommodations and food services.. 2.3 2.4 .1 4.3 2

Other services................................................. 3.9 1.8 – 2.1 –53.8 217 10

     

Government ........................................................... 3.9 2.9 – 1.0 –25.6 872 64

Federal................................................................... 11.4 4.0 – 7.4 –64.9 312 110 

State and local.................................................... 2.9 2.7 – .2 – 6.9 559 

     

 Region3       

     

Northeast............................................................. 3.2 3.1 – .1 – 3.1 821 

South ..................................................................... 3.0 2.7 – .3 –10.0 1,475 1,342 

Midwest................................................................ 3.3 2.9 – .4 –12.1 1,034 91

West ....................................................................... 3.7 3.0 – .7 –18.9 1,132 90

            

            

1 The annual other separations rate is the number of other separations

during the entire year as a percent of annual average employment.  

          2 The annual other separations level is the total number of other separations during the entire year.              

3 See footnote 3, Table 1.

Industry and region

unemployed per job opening is approaching 4 to 1. All 

four regions show a similar trend of an increasing ratio 

beginning in mid-2007.

Regional trends: hires

Similar to the trend at the national level, hires have trended 

downward at the regional level in 2008. All four regions 

have dropped to series low hires rates, seasonally adjusted. 

In 2008, after peaking at a hires rate of 4.2 percent in 

April, the West region reached a series low of 3.4 percent 

in October. The Northeast and Midwest both experienced 

slight increases in hires rate in June 2008 at 3.2 and 3.6 

percent, respectively, but then the hires rates fell to 2.6 

percent in the Northeast and 3.0 percent in the Midwest 

by November 2008. The South region showed a steady 

decline in hires to a low of 3.2 percent in November 2008 

and then increased to 3.4 percent in December.

Regional trends: total separations

Total separations increased in the Northeast and West 

regions and decreased in the Midwest and South regions. 

From December 2007 to December 2008, separations in-
JOLTS Annual Story

40  Monthly Labor Review • May 20

 Chart 5. Composition of total separations: 2006 and 2008 

Quits

58%

2006

Other

separations

8%

Layoffs

and

discharges

34%

Quits

52%

Layoffs

and

discharges

41%

Other

separations

7%

2008

 Chart 4. Difference between monthly hires and separations, seasonally adjusted, December 2000–December 

2008

600

400

200

0

–200

–400

–600

–800

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

600

400

200

0

–200

–400

–600

–800

(In thousands) (In thousands)

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.
Monthly Labor Review • May 2009  

 Chart 7. JOLTS layoffs and discharges and initial unemployment insurance claims, seasonally adjusted, 

December 2000–December 2008

(In thousands) (In thousands)

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

2,700

2,500

2,300

2,100

1,900

1,700

1,500

1.300

1,100

2,700

2,500

2,300

2,100

1,900

1,700

1,500

1.300

1,100

Initia

Layoffs and discharges

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

 Chart 6. JOLTS quits and the Conference Board Consumer Confidence IndexTM, seasonally adjusted, December 

2000–December 2008

Consumer Confidence

Index

Quits

(in thousands)

Consumer Confidence Index

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

140

120

100

80

60

40

20

0

Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008

Quits

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.
JOLTS Annual Story

42  Monthly Labor Review • May 20

creased in the Northeast from 2.8 percent to 3.2 percent 

and in the West from 3.9 percent to 4.0 percent. During 

the same time period, total separations in the South decreased from 3.8 percent to 3.7 percent and in the Midwest from 3.6 percent to 3.5 percent.

Relative contributions of the components of total 

separations varied by region. Layoffs and discharges in 

the West showed the highest annual percentage of total 

separations of the four census regions at 44.8 percent in 

2008. The South showed the lowest contribution of layoffs 

and discharges to total separations at 37.3 percent. Quits 

were high in the South at 56.6 percent of that region’s 

total separations. The Northeast showed the lowest contribution of quits to total separations of the four Census 

regions at 47.4 percent. Other separations were highest in 

the Northeast as a percentage of that region’s total separations at 8.2 percent while the South again shows the 

lowest contribution at 6.1 percent.

Industry trends in 2008

The overall pattern of declining job openings, declining 

hires, increasing layoffs and discharges, and declining 

quits and other separations was consistent across most 

industries. For the majority of industries job openings 

declined from December 2007 to December 2008. The 

following industries reached series lows during 2008 for 

their job openings rates, seasonally adjusted: construction 

in December 2008; professional and business services in 

November 2008; and accommodation and food services 

in November 2008.

Hires rates also declined in the majority of industries 

over 2008. The following industries dropped to series low 

seasonally-adjusted hires rates during 2008: manufacturing in November 2008; retail trade in November 2008; 

professional and business services in September 2008; arts, 

entertainment, and recreation in November 2008; and accommodation and food services in December 2008. 

Typically, average monthly hires exceed average 

monthly job openings. This is true in 2008 at the total 

nonfarm level. However, there are several industries in 

which average monthly job openings exceeded average 

monthly hires in 2008 indicating areas where, in spite of 

the current recession, demand for some types of labor may 

be greater than the supply. These industries include information; finance and insurance; and health care and social 

assistance. (See chart 8.)

Total separations rates at the industry level showed a 

 Chart 8. Monthly hires and job openings rates, annual averages, 2008

Average monthly hires Average m

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Total nonfarm Information Finance and insurance Health care and soci

assistance

Percent Percent
Monthly Labor Review • May 2009  

mix of increases and decreases over the year: construction; 

manufacturing; trade, transportation, and utilities; and 

professional and business services experienced increasing 

seasonally-adjusted total separations numbers over the 

course of 2008. The remaining industries experienced seasonally-adjusted declines in total separations during 2008, 

with the exception of education and health services, which 

remained unchanged. Series lows occurred in the following seasonally-adjusted separations series: arts, entertainment, and recreation; and government. In the remaining 

separations series, which are not seasonally adjusted, total 

separations increased from December 2007 to December 

2008 with the following exceptions: finance and insurance; educational services; and Federal Government.

Industry level layoffs and discharges, which are not seasonally adjusted, have increased over the year in almost all 

industries with the exceptions of finance and insurance; 

Federal Government; and State and local government 

which showed declines. In December 2008, wholesale 

trade reached a series high for layoffs and discharges at 2.4 

percent of total employment, not seasonally adjusted. In a 

number of cases, layoffs and discharges remained stable 

until after the summer months when the climb in layoffs 

and discharges began.

Quits have declined in all of the seasonally adjusted 

industry series from over the year with most industries 

dropping to series low quit rates. For the not seasonally 

adjusted series, Federal Government quits dropped to a 

series low rate of 0.1 percent of total employment in November 2008.

Other separations, which are not seasonally adjusted, 

were fairly stable over 2008, trending downward only 

slightly in most industries. Notably, mining and logging 

showed a 0.3 percent decline from December 2007 to 

December 2008 in other separations as did wholesale 

trade. Real estate and rental and leasing on the other hand 

showed an increase in other separations of 0.4 percent of 

total employment.

Leisure and Hospitality. Leisure and hospitality showed 

large changes over the course of 2008 in job openings, 

hires, and total separations. The job openings rate, seasonally adjusted, declined steadily over the year from 4.1 percent in December 2007 to 2.3 percent in December 2008, 

a series low. Hires, seasonally adjusted, declined from a 

high of 6.9 percent in February 2008 to a low of 5.3 percent in November 2008. In May, the hires rate increased to 

6.7 percent but then resumed the downward trend. Total 

separations in the leisure and hospitality industry showed 

a downward trend from a high of 6.9 percent in February 

2008 to a low of 5.7 percent in December 2008. 

In arts, entertainment, and recreation, job openings 

dropped slightly by 0.3 percent while hires declined by 

1.1 percent, seasonally adjusted, from December 2007 to 

December 2008. Quits reached a series low of 1.5 percent 

in December 2008, seasonally adjusted. Accommodation 

and food services showed a downward trend for 2008 

in job openings. Job openings, seasonally adjusted, went 

from 4.4 percent in December 2007 to 2.4 percent in 

December 2008. Hires for accommodation and food services, seasonally adjusted, trended downward over 2008. 

From December 2007 to December 2008, total separations dropped from 6.8 percent to 5.7 percent, seasonally 

adjusted.

Durable Goods Manufacturing. The durable goods manufacturing industry experienced declining job openings 

and hires, and increasing total separations. An analysis of 

the annual data provides another look at the impact of the 

recession on the durable goods industry. 

On an annual basis, the share of layoffs and discharges 

as a percent of total separations showed a larger increase in 

durable goods manufacturing from 2007 to 2008 than any 

other industry. The contribution of layoffs and discharges 

went from 41.8 percent in 2007 to 52.4 percent in 2008, 

an increase of 10.6 points. Quits also declined from 49.4 

percent contribution to total separations in 2007 to 39.8 

percent in 2008, a decrease of 9.6 points. This represents 

a larger decline in quits as a portion of total separations 

than any other industry as well.

Construction. The construction industry experienced a 

drop in job openings rate from 1.8 percent in December 2007 to a low of 0.9 percent in December 2008 while 

hires experienced an increase from 5.0 percent in December 2007 to 5.3 percent in December 2008, seasonally 

adjusted. Total separations, seasonally adjusted, were up 

from 5.4 percent to 6.6 percent for the same time period. 

The layoffs and discharges rate, not seasonally adjusted, 

experienced a large increase from 3.8 percent in December 2007 to 5.8 percent in December 2008. The increase 

in layoffs and discharges in the construction industry can 

be explained by the severe problems in the financial and 

housing markets during the recession. According to CES

employment figures, national construction employment 

went from 7.5 million employees in December 2007 to 

6.8 million employees in December 2008, seasonally adjusted.
JOLTS Annual Story

44  Monthly Labor Review • May 20

Conclusion

The current recession continued to impact labor market 

demand in 2008; job openings and hires declined and 

layoffs and discharges increased while quits decreased at 

the national level. For all four Census regions, job openings declined as did hires. Total separations increased 

in the Northeast and remained relatively unchanged in 

the remaining regions. At the industry level, declining 

job openings, declining hires, increasing layoffs and discharges, and declining quits and other separations were 

measured across most industries.

NOTES

1

 Zhi Boon, “Job openings, hires, and turnover decrease in 2007,” Monthly 

Labor Review (May 2008): 14-23.

2

 National Bureau of Economic Research. Determination of the December 

2007 Peak in Economic Activity, December 1, 2008. http://www.nber.org/cycles/dec2008.html (visited Dec. 11, 2008).

3

 U.S. Department of Labor. Bureau of Labor Statistics. Data on the unemployment rates are available from Current Population Survey at http://stats.

bls.gov/cps/#news (visited Mar. 18, 2009).

4

 U.S. Department of Labor. Bureau of Labor Statistics. Data on the annual 

employment levels are available from the Current Employment Statistics at 

http://stats.bls.gov/ces/home.htm (visited Mar. 18, 2009).

5

 U.S. Department of Labor. Bureau of Labor Statistics. Job Openings and 

Labor Turnover Survey News Release: Job Openings and Labor Turnover: January 2009, March 10, 2009, http://stats.bls.gov/news.release/archives/jolts_

03102009.htm (visited Mar. 10, 2009).

6

 “Economic Jolt: Job Openings and Labor Turnover December 2008,” Paper Economy, February 10, 2009, http://paper-money.blogspot.com/2009/02/

economic-jolt-job-openings-and-labor.html#links (visited Mar. 18, 2009).

7

 Diane Stafford, “10 million job hunters for 3 million jobs,” Kansas City 

Star, December 14, 2008, http://economy.kansascity.com/?q=node/513 (visited Mar. 18, 2009). The article uses JOLTS data dating from before the most 

recent retabulations and methodology updates.

8

 U.S. Department of Labor. Bureau of Labor Statistics. Data on the annual employment levels are available from the Current Employment Statistics 

at http://stats.bls.gov/ces/home.htm (visited Mar. 18, 2009).

9

 Nick Zieminski, “Workers less willing to move or switch jobs,” Reuters, August 

1, 2008, http://www.reuters.com/article/reutersEdge/idUSN0143860920080801

(visited Mar. 18, 2009).

10 Ibid.

11 Sue Kirchhoff, “Consumer confidence hits new low; home values continue to slide,” USA Today, January 27, 2009, http://www.usatoday.com/money/

economy/housing/2009-01-27-case-shiller_N.htm. (visited Mar. 18, 2009).

12 Conference Board. Data on the Consumer Confidence Index are available from the Consumer Confidence Survey at http://www.conference-board.

org/economics/consumer.cfm (visited Mar. 18, 2009).

13 U.S. Department of Labor. Employment and Training Administration. 

Data from the Unemployment Insurance Claims are available on the internet at 

http://www.dol.gov/opa/media/press/eta/ui/eta20090005.htm (visited Mar. 

24, 2009). Monthly claims calculations shown on graph sum the weekly initial 

unemployment claims by month. 

14 U.S. Department of Labor. Bureau of Labor Statistics. Data on the local area unemployment rates are available from the Local Area Unemployment 

Statistics program at http://www.bls.gov/lau/ (visited Mar. 18, 2009).