Unemployed Persons to Job Openings Ratio Hits a Three-Year High

The job openings rate and quits rate were both down in the latest release of the state Job Openings and Labor Turnover Survey (JOLTS). The separations rate, hires rate, labor turnover rate, and the unemployed persons to job openings ratio all increased in July.

Job Openings Continue to Fall

Job openings in Michigan declined by approximately 5,000 from June (212,000) to July (207,000). Subsequently, the job openings rate, a measure of job openings as a percentage of employment, fell to 4.4 percent (-0.1 percentage points). This was below the national rate at the time (4.6 percent) and the 12th lowest among other states.

The job openings rate continued its downward trend in July.

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

Labor Turnover Inched Above National Rate

The labor turnover rate, a combination of the hires and separation rates, saw a notable increase as it rose a full percentage point from June (6.2 percent) to July (7.2 percent). Michigan inched above the national rate (6.9 percent) and moved to the 20th lowest in July, a significant jump from nineth lowest in the month prior.

Hires Sees Notable Growth

Michigan’s hires rate, a measure of hires as a percentage of employment, increased over the month to 4.1 percent (+0.7 percentage points). This increase was due to employers hiring 29,000 more individuals in July (183,000) than the month prior (154,000). Michigan moved to the 14th highest among states and was above the national hires rate off 3.5 percent.

Separations Boosted by Increase in Involuntary Separations

Like hires, separations increased in July by approximately 13,000 (139,000). Michigan’s separations rate, a measure of separations as a percentage of employment, climbed to 3.1 percent as a result (+0.3 percentage points). Michigan recorded the eighth lowest separations rate among states and remained below the national rate of 3.4 percent.

Quits, a measure of voluntary separations, were recorded at 79,000 in July (-7,000). This decline resulted in a marginal decrease in the quits rate to 1.8 percent (-0.1 percentage points). Michigan registered the eighth lowest quits rate among states and remained below the national rate (2.1 percent). Conversely, the layoffs/discharges rate, a measure of involuntary separations, rose to 1.1 percent (+0.4 percentage points), which was equal to the national rate during this period. This rate increase was due to approximately 16,000 more individuals involuntarily separating from their jobs during this period.

Unemployed Persons Exceed the Number of Available Jobs in July

Michigan’s unemployed persons to job openings ratio continued its upward trend in July as it reached a ratio of 1.1. A ratio of over one indicates that there were more individuals available to work than there were job openings during this time. This was the highest this ratio has been and the first time it has exceed 1.0, since it reached the same level in March 2021. Michigan was one of 12 states whose ratio was equal to, or higher than, the national ratio of 0.9.

The unemployment to job openings ratio hit a three-year high in July.

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