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JOLTS Jobs Report: Record Numbers of Americans Quit Their Jobs

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About 2.9% of the workforce quit in August, up from 2.7% in July, according to the Job Openings and Workforce Rotation Survey (JOLTS) report released. Tuesday. This is the highest dropout rate since the report began at the end of 2000.
The number of workers who quit rose by 242,000 as of July, as more Americans demanded higher wages, better working conditions and more flexible arrangements. The number of people who quit has increased in accommodation and food services, wholesale trade, and state and local government education.

“If you’re unhappy with your job or want a raise, in today’s environment it’s pretty easy to find a new one,” said Gus Faucher, chief economist at PNC. “We see people voting with their feet.”

Businesses continue to face a severe labor shortage. Job vacancies remained very high at the end of August at 10.4 million, according to the JOLTS report. However, that marks a decrease of 659,000 from the end of July.
The numbers show that the labor shortage was even worse than previously thought this summer. The number of job vacancies in July was revised upwards to 11.1 million, a record since this report began in 2000.

“The golden age” for workers

Joe Brusuelas, chief economist at RSM, said this could be the start of what could possibly be considered “the golden age for the American worker.”

“The American worker is now convinced that he or she has bargaining power and can get a reasonable wage – and influence the shape of working conditions,” Brusuelas said.

This bargaining power comes from their willingness to quit jobs they don’t like and look for new ones. And this change is not just focused on simple economics, but on a broader reassessment of quality of life and purpose.

“This is what happens after great wars or depressions,” Brusuelas said. “It’s hard to spot while you’re at it, but we’ve been through a shock that caused an unexpected change in the population. And it will take some time to sort it out.”

All of this helps explain why employers, including factories, trucking companies, restaurants, construction companies, and schools, struggle to find workers.
JOLTS Jobs Report: Record Numbers of Americans Quit Their Jobs

In the long run, such a transformation of the workforce will be a positive thing, enabling more people to find career satisfaction and enabling companies to have happier employees. And it can allow more workers to earn a living and contribute to the economy as a whole, thereby narrowing the alarming gap between rich and poor.

In the short term, however, the labor shortage will continue to make it difficult to reopen the global economy, contributing to rising prices, supply chain stress, product shortages and delays. shipping.

“It takes a bit for these things to work out on their own,” PNC’s Faucher said.

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