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Labor Turnover Falls to Lowest in Over a Decade

Both the job openings rate and the unemployed persons to job openings ratio saw marginal increases in the latest release of the state Job Openings and Labor Turnover Survey (JOLTS). Other indicators such as separations, labor turnover, quits, layoffs/discharges, and hires declined in August.

Job Openings Grow Marginally

Job openings in Michigan increased by approximately 2,000 from July (213,000) to August (215,000). This increase moved the job openings rate, a measure of job openings as a percentage of employment, to 4.6 percent (+0.1 percentage points). Michigan remained below the national openings rate at the time (4.8 percent).

The unemployed persons to job openings ratio rose marginally from 1.04 to 1.05. Michigan was significantly above the national ratio at the time (0.88) and was the seventh highest among states. A ratio above one indicates that there were more unemployed individuals than available jobs in August. This was the second consecutive month where Michigan’s ratio has been above one.

Michigan's unemployed persons to job openings ratio continued to inch upward in August.

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

Hires Fell in August

Hires saw a significant decline from July (188,000) to August (138,000) by approximately 50,000. This resulted in a 1.1 percentage point drop in the hires rate, a measure of hires as a percentage of employment, to 3.1 percent. Michigan was below the national hires rate (3.3 percent) and fell to the 12th lowest among states, a significant drop from the seventh highest in the month prior.

Separations Inched Down

Like hires, separations fell from July to August, dropping to 129,000 (-11,000). Subsequently, Michigan’s separations rate, a measure of separations as a percentage of employment, fell to 2.9 percent (-0.2 percentage points). Michigan maintained the ninth lowest separations rate for the second consecutive month and remained below the national rate (3.1 percent).

Quits, a measure of voluntary separations, were recorded at 77,000 in August (-3,000). This resulted in a 0.1 percentage point decline in Michigan’s quits rate to 1.7 percent. Similarly, layoffs/discharges, a measure of involuntary separations, were down as well. Numerically, layoffs/discharges declined by approximately 7,000, which translated to a 0.1 percentage point drop in the layoffs/discharges rate.

Labor Turnover Hits a Decade Low

Labor turnover saw a notable decline from July to August as the turnover rate, a combination of the hires and separations rate, fell from 7.3 percent to 5.9 percent (-1.4 percentage points). This was the lowest Michigan’s labor turnover rate has been recorded since March 2014 (5.8 percent). Michigan recorded the seventh lowest turnover rate of all states and remained below the national rate at the time (6.5 percent).

The labor turnover rate fell to its lowest level in over a decade.

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

 

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