The economy continues its shift. 4.4 million Americans quit their jobs last month

Anerdyblackguy

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A record 4.4 million Americans quit their jobs in September as labor market tumult continued

Rising coronavirus cases, problems finding child care and better wages elsewhere have all prompted a record number of Americans to quit their jobs

A street vendor sits near a sign advertising job openings in a retail store in New York in October. (Justin Lane/EPA-EFE/Shutterstock )


By Eli Rosenberg


Today at 10:06 a.m. EST|Updated today at 12:57 p.m. EST
A record 4.4 million Americans quit their jobs in September as Americans continued to take advantage of ample job openings to look for alternatives, a sign of how imbalances in the labor market continue to complicate the economic recovery 20 months into the pandemic.

September’s “quit” numbers constituted 3 percent of the workforce, according to the Bureau of Labor Statistics. That number is up from the previous record set in August, when 4.3 million people quit their jobs — about 2.9 percent of the workforce.

The statistics reflect the changes that continue to wrench the labor market after the pandemic upended the course of business and life across the country in 2020.

Americans are quitting their jobs for a number of reasons.

In September, when the delta variant of the coronavirus reached its most recent peak, child care and schooling pressures forced many employees to rethink their daily routine. Many other workers, meanwhile, were lured to other jobs because of better pay and benefits as employers became desperate to fill openings. Safety issues remain a pressing concern for workers who work in industries that require a high volume of face-to-face interactions. And retirements have also picked up pace, as many older Americans have decided to resign.

“There are likely some delta-induced quits here,” said Daniel Zhao, an economist at Glassdoor. “Workers are fed up with working conditions and feel unsafe and quitting even though they might not immediately jump into a new job.”

Those pressures are reflected in the industry-specific data in Friday’s report. Sectors with the highest percentages of workers quitting include trade, transportation and utilities. There were also high levels of people quitting jobs in retail, professional and business services, as well as leisure and hospitality work like arts and entertainment, hotels and restaurants. A whopping 6.6 percent of workers in accommodation and food services quit their job in the month.

In September, the biggest increases in quits included entertainment and recreation (+56,000) and education and health services (+54,000).

“Quits are high in leisure and hospitality, health services and education,” Zhao noted. “Those are all industries where an increase in covid can make work less safe.”

The South, the West and Midwest have the highest numbers of workers quitting their jobs, at 3.3, 3.1 and 3.0 percent, while only 2.2 percent of workers in the Northeast are quitting jobs. This is consistent with trends seen in August, which showed that workers in more rural areas quit at a higher rate in part because they had more leverage to demand better pay.

The country has regained the vast majority of jobs lost in the earliest months of the pandemic but still has over 4 million fewer jobs than in February 2020. Economists have been looking to the return to full employment as an important milestone, but labor shortages, surging caseloads from the delta variant, supply chain issues and other wrinkles have emerged to complicate that recovery. The high level of turnover among employees is adding to the mismatch, as lower-wage jobs are increasingly hard to fill because workers in those professions are finding alternatives.

Businesses and industry groups have complained vociferously about trouble finding available workers since the country’s wide reopening in the spring, as they have sought to hire up. Efforts to curtail unemployment benefits have shown little success in prompting large numbers of people back into the labor market.
 

Anerdyblackguy

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Many workers have made the calculation that their old jobs — low-paying work in industries like restaurants, which have really struggled to fill holes — are no longer desirable, even as companies dangle raises and bonuses to lure employees back to the workplace. A number of older workers have taken early retirements, taking advantage of the big increase in the stock market to pad out their savings. This is part of a portrait of a labor force that has shrunk by percentage of the U.S. population during the pandemic.

And some economists question whether other factors that have reshaped the traditional dynamics of the labor force after the deaths of 750,000 people.

All of these factors have created a tremendously choppy labor market with lots of turnover. Even in this climate, there are workers who say they cannot find suitable work because of a mismatch in the type of job they are looking for and the types of jobs that are available.


According to the jobs site ZipRecruiter, some 62 percent of jobs seekers on the site report that they are looking to change the type of job they had, according to a September study; 55 percent said they are now trying to get a job where they can work from home.

Of those who were seeking the ability to work from home, 85 percent said either workplace safety concerns (50 percent) or child care/family care needs (35 percent) were driving their decisions — data that indicates how many people are attempting to switch industries in the hopes of being able to work from home.

But companies often have very rigid criteria for the types of resumes they will consider for jobs.

Why millions of job seekers aren’t getting hired in this hot job market

All the churn has left workers with more leverage than before the pandemic, which has resulted in significant wage increases as well: Average hourly earnings are up more than 5 percent for the year. Strikes by unionized workers have ticked up as well.


But inflation from the rising prices of goods is wiping out those wage gains, at least so far. Prices rose 6.2 percent in October for the year — the largest annual increase in 30 years, raising the specter that inflation could complicate political decisions in Washington in the coming months. When adjusted for the costs of rising prices, earnings are down 1.1 percent on the year.

“I would expect over the next year the price inflation to relent a bit, and most of the wage growth to stay — and so I think they’re going to come out ahead,” said Josh Bivens, the director of research at the left-leaning Economic Policy Institute. “But yeah, this inflationary spike has definitely bit into the growth of paychecks.”
 

the cac mamba

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wonder how long people end up holding out :ehh: but definitely a good trend. wages are trash

dems were stupid to get greedy on 15 min wage. they should have gone for 12
 

dora_da_destroyer

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wonder how long people end up holding out :ehh: but definitely a good trend. wages are trash

dems were stupid to get greedy on 15 min wage. they should have gone for 12
Except for all the large chains that raised wages, and added benefits like tuition reimbursement, expanded retirement benefits, bonuses, etc. :rudy:

seems like Dems were smart to go for $15 as plenty large businesses met that threshold. Any raise was always going to be a toss up for small biz
 
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Except for all the large chains that raised wages, and added benefits like tuition reimbursement, expanded retirement benefits, bonuses, etc. :rudy:

seems like Dems were smart to go for $15 as plenty large businesses met that threshold. Any raise was always going to be a toss up for small biz
Ignore him he’s against anything that actually helps Americans love comfortably
 

the cac mamba

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Except for all the large chains that raised wages, and added benefits like tuition reimbursement, expanded retirement benefits, bonuses, etc. :rudy:

seems like Dems were smart to go for $15 as plenty large businesses met that threshold. Any raise was always going to be a toss up for small biz
i don't understand this post :dead: businesses raised wages because dems failed to do anything?

it's solely public pressure, plus competing with the unemflation benefits

Ignore him he’s against anything that actually helps Americans love comfortably
i would have rather seen 12 pass than 15 fail :yeshrug: 12 is an easier sell, for obvious reasons. and no, 15 should not be the minimum wage in shythole southern states.

but i know that you communists have a pretty unrealistic worldview, and that bernie sanders wanting something is better than joe manchin doing something
 
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dora_da_destroyer

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i don't understand this post :dead: businesses raised wages because dems failed to do anything?

it's solely public pressure, plus competing with the unemflation benefits


i would have rather seen 12 pass than 15 fail :yeshrug: 12 is an easier sell, for obvious reasons. and no, 15 should not be the minimum wage in shythole southern states.

but i know that you communists have a pretty unrealistic worldview, and that bernie sanders wanting something is better than joe manchin doing something
Businesses met the $15 threshold because it was a reasonable, doable number, and Dems were right to argue for it. $12 would’ve been obstructed to $9…let’s be reality here
 

the cac mamba

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Businesses met the $15 threshold because it was a reasonable, doable number, and Dems were right to argue for it. $12 would’ve been obstructed to $9…let’s be reality here
:laff: what an incoherent argument

democrats didnt DO anything :what: the minimum wage is unchanged. you think businesses raised wages because the far left was whining on twitter? :why:
 

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:laff: what an incoherent argument

democrats didnt DO anything :what: the minimum wage is unchanged. you think businesses raised wages because the far left was whining on twitter? :why:
Are you really this dense or simply choose to play the dumbass in order to just get your takes off? The answer is clearly yes to one of these, and regardless of which yes is the answer to, it means I need not spend more time replying to you
 

the cac mamba

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Are you really this dense or simply choose to play the dumbass in order to just get your takes off? The answer is clearly yes to one of these, and regardless of which yes is the answer to, it means I need not spend more time replying to you
it was normal market forces, or abnormal due to the pandemic. but you're arguing that businesses raised wages because democrats talked about raising it, failed to raise it, and it remains at 7.25. so democrats intimidated them or something? :dead:

im glad to learn they have this untapped power :wow: why bother raising taxes if they can just whine about it, and musk and bezos will start cutting checks to the treasury?
 

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it was normal market forces, or abnormal due to the pandemic. but you're arguing that businesses raised wages because democrats talked about raising it, failed to raise it, and it remains at 7.25. so democrats intimidated them or something? :dead:

im glad to learn they have this untapped power :wow: why bother raising taxes if they can just whine about it, and musk and bezos will start cutting checks to the treasury?
the National Dem party failed but a bunch of states did it because the local Democratic Party got it on the ballot.
 

the cac mamba

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the National Dem party failed but a bunch of states did it because the local Democratic Party got it on the ballot.
which is how it should be :yeshrug:

get the national minimum wage to 12. let locals raise it up further. we passed a 15 min wage when i lived in MA, and i voted for it
 

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which is how it should be :yeshrug:

get the national minimum wage to 12. let locals raise it up further. we passed a 15 min wage when i lived in MA, and i voted for it
But that’s the point.

Businesses(larger and small) fought against it saying they couldn’t afford it pre-covid.

Now that they have to fight for labor…

“ oh hey remember that 15 an hour you were talking about.”

So yeah they took the threshold the Dems asked for.

It’s basically just Nolan’s inception in real life. Idea was placed years ahead and now it’s being treated like they just came up with the wages for 15 an hr.


Progressives knew most businesses could afford that increase.
 

the cac mamba

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But that’s the point.

Businesses(larger and small) fought against it saying they couldn’t afford it pre-covid.

Now that they have to fight for labor…

“ oh hey remember that 15 an hour you were talking about.”

So yeah they took the threshold the Dems asked for.

It’s basically just Nolan’s inception in real life. Idea was placed years ahead and now it’s being treated like they just came up with the wages for 15 an hr.


Progressives knew most businesses could afford that increase.
but small businesses in the south cant afford it :dead: what the fukk are you talking about?

you're not passing a "big, evil corporation minimum wage". you're passing a national minimum wage
 
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