Hires Reach a Near Three-Year High in September

Michigan’s job openings rate increased in September according to the latest state Job Openings and Labor Turnover Survey (JOLTS). The hires rate and labor turnover rate also increased over the same period, while others such as the quits rate, layoffs/discharges rate, and separations rate fell or stagnated.

Job Openings Jump Above National Rate

There were approximately 19,000 more job openings in September (228,000) than in August (209,000). As a result, Michigan’s job openings rate, a measure of job openings as a percentage of employment, rose to 4.8 percent (+0.3 percentage points). This was above the national openings rate of 4.5 percent in September.

The unemployed persons to job openings ratio fell to 1.00. This came after five consecutive months of growth. A ratio of 1.00 indicates that there were equal amounts of job openings as people available to work in Michigan. Despite this decline, Michigan remained above the national ratio (0.92) and recorded the eighth highest job opening ratio among other states.

Hires Highest in Nearly Three Years

Michigan’s hires rate, a measure of hires as a percentage of employment, jumped nearly a full percentage point to 4.5 percent in September (+0.9 percentage points). This came from an increase of approximately 41,000 individuals hired that make up separations between August (162,000) and September (203,000). Michigan jumped to the fifth highest hires rate among states and was a full percentage point above the national hires rate (3.5 percent). Notably, this was the highest number of hires Michigan has recorded since December 2021 (208,000) and the highest hires rate since March 2022 (4.7 percent).

Michigan hires jumped to the highest point in nearly three years in September.

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

Separations Inch Downward

Separations fell to 160,000 in September (-6,000), which translated to a 0.1 percentage point drop in the separations rate (3.6 percent). Michigan was above the national separations rate (3.3 percent) though was only middle of the pack among other states (23rd highest).

Quits and layoffs/discharges, the two components which make up separations, saw minimal to no change in September.  The quits rate, a measure of quits as a percentage of employment, registered a rate of 2.2 percent for the second consecutive month. This was above the national quits rate at the time (1.9 percent) and was similarly average compared to other states (23rd highest). The layoffs/discharges rate, a measure of involuntary separations, fell marginally to 1.2 percent (-0.1 percentage points). This was driven by approximately 4,000 less individuals being let go from their positions in September than the month prior.

Labor Turnover Rate Outpaces Midwestern Counterparts

The labor turnover rate, a combination of both separations and hires which measures movement in the labor market, jumped to 8.1 percent in September (+0.8 percentage points). This increase moved Michigan above the national rate (6.5 percent). Michigan had the eighth highest labor turnover rate among other states and was significantly higher than its Midwestern counterparts.

Michigan's labor turnover rate was significantly higher than its Midwestern counterparts in September.