In September, an unprecedented number of Americans resigned, underscoring that continued attrition is undermining employers’ efforts to fill close to record-breaking job vacancies.
The US Department of Labor released the Job Vacancies and Labor Flow Survey (JOLTS), late last week. It showed that 4.4 Million Americans quit in September, a record. At the same, 10.4 million positions have been made available.
Americans are leaving their jobs in droves because of record wage increases and other attractive conditions offered to them by employers who desperately require talent. This makes it harder for employers to fill vacant positions while also increasing inflation and salaries.
The turnover rate (or the percentage of turnovers in total employment) rose to 3.3% in September. This is a record-breaking data set since 2000.
A number of industries have seen an increase in resignations, including arts, entertainment and entertainment as well as other services and education in state and local governments. Record numbers of people resigned in the healthcare, manufacturing and leisure industries.
Due to the strong momentum in healthcare, social assistance, September saw almost the same number of recruits as September: 6.5 million. At 4.4%, the recruitment rate was unchanged. The number of layoffs/discharges was almost the same at 1.4million
Another report revealed that US consumer confidence dropped to its lowest level in 10 years in November. This is a reflection of growing worries about the effect inflation has on their finances.
For four consecutive months, the number of jobs surpassed 10 million. Before the pandemic, the record was 7.5 millions. In September, there were more job openings than 7.7 millions unemployed. This indicates that many companies are having trouble finding workers.
Particularly in industries that rely on face-to-face services such as retail, restaurants and hotels, the rate of resignations has increased.