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Labour turnover is concerned with movements of individuals into jobs (hirings) and out of jobs (separations) over a particular period.

Labour turnover is the sum of job turnover, which relates to the expansion and contraction of establishments or firms, and the movement of workers into and out of ongoing jobs in establishments or firms. Workers leave firms and firms hire other workers to replace them, regardless of whether the firm itself is growing or declining.

The difference between job and labour turnover can be illustrated as follows: Suppose a given establishment has 100 people employed at time t and 110 at t+1. During this period, 10 people have been hired to fill newly created posts. The job turnover rate, i.e. the net change in employment is 10%. But, suppose that, during the same period, 10 individuals left the establishment and 10 were hired to replace them. Labour turnover, which concerns the movement of workers into and out of jobs, is 30% [the sum of all hirings (20) and separations (10) divided by initial employment (100)].

Source Publication:
OECD Employment Outlook, July 1996, Chapter 5, Employment adjustment, workers and unemployment, page 165.

Cross References:
Job turnover

Statistical Theme: Labour statistics

Created on Thursday, May 2, 2002

Last updated on Thursday, March 6, 2003