Labor Turnover Increases in February

Michigan’s job openings rate declined in the February release of the state Job Openings and Labor Turnover Survey (JOLTS) (5.0 percent). Similarly, the separations rate also declined during this time (3.1 percent). Though marginal, the hires rate (3.4 percent), quits rate (1.9 percent), and labor turnover rate (6.6 percent) all increased in February. The layoffs/discharges rate remained stagnant.

Job Openings Fell in February

Michigan job openings fell by 11,000 from January (248,000) to February (237,000). This was reflected in a 0.3 percentage point drop in the job openings rate to 5.0 percent. The state has fallen below the national rate (5.3 percent) after surpassing it in the final months of 2023. Michigan, along with most Midwest states continue to have some of the lowest job opening rates nationally.

Job openings rate in Michigan continues to decline and falls below the national rate in February. 

Source: Job Openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics

The unemployed persons to job openings ratio increased from 0.81 to 0.84. Like the previous month, this meant that for every 10 openings, there were approximately eight individuals available to fill those jobs. Michigan’s ratio was also higher than the national rate at the time (0.74). Among other states, Michigan had the eighth highest ratio in February compared to the 10th highest in January.

Hires Increased

Hires inched up in February by 8,000, moving from 146,000 to 154,000. Subsequently, the hires rate grew by 0.1 percentage point to 3.4 percent. Michigan remained below the national rate (3.7 percent) but moved up in relation to other states.

Separations Decline Marginally

Separations fell to 3.1 percent, a modest 0.1 percentage point change from the month prior. Numerically, only 1,000 less employees separated from their positions in February (140,000) than in January (141,000). Though the change was relatively small, this moved Michigan to the seventh lowest separations rate compared to 12th in the previous month. Michigan’s separations rate was also below the national rate in February (3.5 percent).

The quits rate grew to 1.9 percent, a small change from January (1.8 percent). Michigan’s quits rate was below the national rate (2.2 percent) for the third consecutive month and remained one of the lowest rates among other states at ninth. Conversely, the layoffs/discharges rate remained stagnant in February, recorded at 1.0 percent for the second consecutive month. This was below the national rate of 1.1 percent.

Labor Turnover Inching Upward

After reaching a near-decade low in December 2023, Michigan’s labor turnover rate has begun to pick back up, displaying rates of 6.4 percent and 6.6 percent in January and February, respectively. The main driver of this increase in labor turnover was the hires rate. Michigan’s hires rate has increased over two consecutive months, while separations have declined in the same time span. Despite this, Michigan remained one of the lowest among other states in labor turnover, while also remaining below the national rate (7.2 percent).

The job openings rate is similar across Midwest states.

Source: Job Openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics