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Technical Note


   The data for the Job Openings and Labor Turnover Survey (JOLTS) are
collected and compiled monthly from a sample of business establishments
by the Bureau of Labor Statistics (BLS).

Collection

   Each month, data are collected in a survey of business establishments
for total employment, job openings, hires, quits, layoffs and discharges,
and other separations.  Data collection methods include computer-assisted
telephone interviewing, touchtone data entry, fax, and mail.

Coverage

   The JOLTS program covers all private nonfarm establishments such as
factories, offices, and stores, as well as federal, state, and local
government entities in the 50 states and the District of Columbia.

Concepts

   Industry classification.  The industry classifications in this release
are in accordance with the 2007 version of the North American Industry
Classification System (NAICS).  In order to ensure the highest possible
quality of data, State Workforce Agencies verify with employers and up-
date, if necessary, the industry code, location, and ownership classi-
fication of all establishments on a 3-year cycle.  Changes in establish-
ment characteristics resulting from the verification process are always
introduced into the JOLTS sampling frame with the data reported for the
first month of the year.

   Employment.  Employment includes persons on the payroll who worked or
received pay for the pay period that includes the 12th day of the refer-
ence month.  Full-time, part-time, permanent, short-term, seasonal, sala-
ried, and hourly employees are included, as are employees on paid vaca-
tions or other paid leave.  Proprietors or partners of unincorporated
businesses, unpaid family workers, or persons on leave without pay or on 
strike for the entire pay period, are not counted as employed.  Employees
of temporary help agencies, employee leasing companies, outside contrac-
tors, and consultants are counted by their employer of record, not by the
establishment where they are working.

   Job openings.  Establishments submit job openings information for the
last business day of the reference month.  A job opening requires that:
1) a specific position exists and there is work available for that posi-
tion, 2) work could start within 30 days regardless of whether a suitable
candidate is found, and 3) the employer is actively recruiting from out-
side the establishment to fill the position.  Included are full-time,
part-time, permanent, short-term, and seasonal openings.  Active re-
cruiting means that the establishment is taking steps to fill a position
by advertising in newspapers or on the Internet, posting help-wanted
signs, accepting applications, or using other similar methods.

  Jobs to be filled only by internal transfers, promotions, demotions,
or recall from layoffs are excluded.  Also excluded are jobs with start
dates more than 30 days in the future, jobs for which employees have
been hired but have not yet reported for work, and jobs to be filled by
employees of temporary help agencies, employee leasing companies, out-
side contractors, or consultants.  The job openings rate is computed by
dividing the number of job openings by the sum of employment and job
openings and multiplying that quotient by 100.


                                  - 6 -

   Hires.  Hires are the total number of additions to the payroll occur-
ring at any time during the reference month, including both new and
rehired employees, full-time and part-time, permanent, short-term and 
seasonal employees, employees recalled to the location after a layoff
lasting more than 7 days, on-call or intermittent employees who returned
to work after having been formally separated, and transfers from other
locations.  The hires count does not include transfers or promotions 
within the reporting site, employees returning from strike, employees of
temporary help agencies or employee leasing companies, outside contrac-
tors, or consultants.  The hires rate is computed by dividing the number
of hires by employment and multiplying that quotient by 100.

   Separations.  Separations are the total number of terminations of
employment occurring at any time during the reference month, and are
reported by type of separation--quits, layoffs and discharges, and 
other separations.  Quits are voluntary separations by employees (ex-
cept for retirements, which are reported as other separations).  Lay-
offs and discharges are involuntary separations initiated by the em-
ployer and include layoffs with no intent to rehire, formal layoffs
lasting or expected to last more than 7 days, discharges resulting
from mergers, downsizing, or closings, firings or other discharges
for cause, terminations of permanent or short-term employees, and
terminations of seasonal employees.  Other separations include re-
tirements, transfers to other locations, deaths, and separations
due to disability.  Separations do not include transfers within the
same location or employees on strike.

   The separations rate is computed by dividing the number of separa-
tions by employment and multiplying that quotient by 100.  The quits,
layoffs and discharges, and other separations rates are computed simi-
larly, dividing the number by employment and multiplying by 100.

   Annual estimates.  Annual estimates of rates and levels of hires,
quits, layoffs and discharges, other separations, and total separations
are released with the January news release each year.

   The JOLTS annual level estimates for hires, quits, layoffs and dis-
charges, other separations, and total separations are the sum of the
12 published monthly levels.  The annual rate estimates are computed by
dividing the annual level by the Current Employment Statistics (CES)
annual average employment level, and multiplying that quotient by 100.
This figure will be approximately equal to the sum of the 12 monthly
rates.  Note that both the JOLTS and CES annual levels are rounded to
the nearest thousand before the annual estimates are calculated.  Con-
sistent with BLS practices, annual estimates will be published only for
not seasonally adjusted data.

   Annual estimates are not calculated for job openings because job
openings are a stock, or point-in-time, measurement for the last busi-
ness day of each month.  Only jobs still open on the last day of the
month are counted.  For the same reason job openings cannot be cumulated
throughout each month, annual figures for job openings cannot be created
by summing the monthly estimates.  Hires and separations are flow mea-
sures and are cumulated over the month with a total reported for the
month.  Therefore, the annual figures can be created by summing the
monthly estimates.


                                  - 7 -

Sample methodology

   The JOLTS sample design is a random sample of 16,000 nonfarm business
establishments, including factories, offices, and stores, as well as
federal, state, and local governments in the 50 states and the District
of Columbia.  The establishments are drawn from a universe of over
eight million establishments compiled as part of the operations of the
Quarterly Census of Employment and Wages, or QCEW, program.  This program
includes all employers subject to state Unemployment Insurance (UI) laws
and federal agencies subject to Unemployment Compensation for Federal
Employees (UCFE).

   The sampling frame is stratified by ownership, region, industry sector,
and size class.  Large firms fall into the sample with virtual certainty.
JOLTS total employment estimates are controlled to the employment esti-
mates of the Current Employment Statistics (CES) survey.  A ratio of CES 
to JOLTS employment is used to adjust the levels for all other JOLTS data
elements.  Rates are then computed from the adjusted levels.

Using JOLTS data

   The JOLTS data series on job openings, hires, and separations are rel-
atively new.  The full sample is divided into panels, with one panel en-
rolled each month.  A full complement of panels for the original data
series based on the 1987 Standard Industrial Classification (SIC) system
was not completely enrolled in the survey until January 2002.  The sup-
plemental panels of establishments needed to create NAICS estimates were
not completely enrolled until May 2003.  The data collected up until
those points are from less than a full sample.  Therefore, estimates from
earlier months should be used with caution, as fewer sampled units were
reporting data at that time.

   In March 2002, BLS procedures for collecting hires and separations data
were revised to address possible underreporting.  As a result, JOLTS hires
and separations estimates for months prior to March 2002 may not be compar-
able with estimates for March 2002 and later.

   The federal government reorganization that involved transferring approx-
imately 180,000 employees to the new Department of Homeland Security is not
reflected in the JOLTS hires and separations estimates for the federal gov-
ernment.  The Office of Personnel Management's record shows these transfers
were completed in March 2003.  The inclusion of transfers in the JOLTS defi-
nitions of hires and separations is intended to cover ongoing movements of
workers between establishments.  The Department of Homeland Security reor-
ganization was a massive one-time event, and the inclusion of these inter-
governmental transfers would distort the federal government time series.

Seasonal adjustment

   BLS seasonally adjusts several JOLTS series using the X-12-ARIMA seasonal
adjustment program.  Seasonal adjustment is the process of estimating and
removing periodic fluctuations caused by events such as weather, holidays,
and the beginning and ending of the school year.  Seasonal adjustment makes
it easier to observe fundamental changes in the level of the series, par-
ticularly those associated with general economic expansions and contrac-
tions.  A concurrent seasonal adjustment methodology is used in which new
seasonal adjustment factors are calculated each month, using all relevant
data, up to and including the data for the current month.


                                  - 8 -

  Prior to the January  2007 benchmark release in March 2007, seasonal adjust-
ment of the JOLTS series was conducted using the stable seasonal filter option
since there were not enough data observations available for the standard use
of moving averages as seasonal filters.  Although the seasonal adjustment of
the JOLTS series is conducted with fewer data observations than is customary,
the number of observations is now above the minimum required by  X-12-ARIMA to
use the normal seasonal filters.  Therefore, the standard use of moving aver-
ages as seasonal filter is now in place for JOLTS seasonal adjustment.  JOLTS
seasonal adjustment now includes both additive and multiplicative seasonal
adjustment models  and REGARIMA (regression  with autocorrelated errors)
modeling to improve the  seasonal adjustment factors at the beginning and end
of the series and to detect and adjust for outliers in the series.

Reliability of the estimates

   JOLTS estimates are subject to both sampling and nonsampling error.  When
a sample rather than the entire population is surveyed, there is a chance
that the sample estimates may differ from the "true" population values they
represent.  The exact difference, or sampling error, varies depending on the
particular sample selected, and this variability is measured by the standard
error of the estimate.  BLS analysis is generally conducted at the 90-percent
level of confidence.  That means that there is a 90-percent chance, or level
of confidence, that an estimate based on a sample will differ by no more than
1.6 standard errors from the "true" population value because of sampling
error.  Estimates of sampling errors are available upon request.

   The JOLTS estimates also are affected by nonsampling error.  Nonsampling
error can occur for many reasons, including the failure to include a seg-
ment of the population, the inability to obtain data from all units in the
sample, the inability or unwillingness of respondents to provide data on a
timely basis, mistakes made by respondents, errors made in the collection
or processing of the data, and errors from the employment benchmark data
used in estimation.

   JOLTS hires and separations estimates cannot be used to exactly explain net
changes in nonfarm payroll employment.  Some reasons why it is problematic to 
compare changes in payroll employment with JOLTS hires and separations, espe-
cially on a monthly basis, are:  1) the reference period for payroll employment
is the pay period including the 12th of the month, while the reference period
for hires and separations is the calendar month; and 2) payroll employment can
vary from month to month simply because part-time and on-call workers may not
always work during the pay period that includes the 12th of the month.  Addi-
tionally, research has found that some reporters systematically underreport
separations relative to hires due to a number of factors, including the nature
of their payroll systems and practices.  The shortfall appears to be about
2 percent or less over a 12-month period.

Other information

   Information in this release will be made available to sensory impaired
individuals upon request.  Voice phone: 202-691-5200; TDD message referral
phone: 1-800-877-8339.