Tuesday, December 11, 2012

New Hires and separations both up in latest JOLTS survey

The number of new hires in the U.S. West, which includes Colorado, rose 7.5 percent year over year from October 2011 to October 2012. Layoffs also rose, rising 15.3 percent during the same period.

According to the latest Job Openings and Labor Turnover report (JOLTS), released today by the U.S. Bureau of Labor Statistics, the West's increase in new hires of 7.5 percent percent was larger than the nation overall which showed a smaller increase of  2.1 percent, when compared year over year. During the same period, layoffs fell 5.1 percent in the nation overall, compared to the West's increase of 15.3 percent.

October's year-over-year increase in new hires was the largest increase since May 2012 when new hires increased year over year by 9.2 percent. 

The first graph shows the year-over-year change in new hires and in layoffs in the U.S. West region. There is no solid trend in either layoffs or new hires. 

In the second graph, we see the total number of new hires compared with the total number of separations, including quits, layoffs and other separations.

Note that when total hires (the blue line) are above separations (the purple bar) then a positive net number of jobs have been added to the economy. October 2012 was the ninth month in a row in which new hires have been larger than separations in the West region. September's data had originally shows than separations were larger than hires, but following this month's revision, the difference turned positive.  Overall, 2012 has been similar to 2011 in the relationship between separations and hires. There were 22,000 more hires than separations during October. 

In this metric, 2012 is very similar to 2011 for the West region. 

Note: The JOLTS employment data is tied to the Establishment Survey which does not cover small business hiring and self-employed persons.The BLS recent made some significant revisions to employment data at year-end 2011. This analysis reflects the new revised data