According to newly released government statistics, 4.5 million Americans resigned in November, marking an all-time high. In September, 4.4 million people left their jobs. 1 million workers left the Leisure and Hospitality companies in November alone, including restaurants, bars, and hotels.
In comparison with the previous year, that’s a 60 percent increase for one of the largest employers. The data shows the ‘Great Resignation’, as some experts prefer to call it, continues apace amid the tight labour market. As a result of a highly competitive labour market, companies raise wages and offer hiring bonuses, encouraging workers to quit lower-paying jobs in favor of more lucrative ones.
According to Liz Wilke, chief economist for payroll services firm Gusto, the quit rate in November was really high, absolutely and relative. Gusto’s clients reported that the quit rate will remain high in December, as the same percentage of employees left in November. This is a reflection of the economic recovery and momentum, he added. Most turnover occurs in lower-paying industries, where employees move to new jobs in search of better salaries, increased flexibility, and better benefits.
About 6.9% of those working in the accommodation and food services sectors quit in November, while only 1.7% of those working in finance left their jobs. The number of private sector quits, which doesn’t include government or farm employees, hit a new all-time high of 3.4%, or 4.3 million workers, according to the BLS.
According to Heidi Shierholz, former chief economist at the Labor Department, 6.7 million people got jobs even as 4.5 million quit their jobs. In the United States, there are 1 million infections per day, Wilke said, noting that about 4.3 million people became entrepreneurs last year. COVID-related issues, such as juggling work and childcare, cause this. The fact that there are more than 1 million infections in the US each day may be behind some workers’ decision to resign.
3.3 million Americans retired between January 2020 and October 2021, nearly twice as many as expected given normal demographic trends. According to Labor Department figures, employers posted fewer job openings in November than in October, down to 10.6 million from approximately 11 million. Bureau of Labor Statistics data shows a decline of about 260,000 new job postings in several industries, including accommodation and food services.
November’s labour market data are from before the current Coronavirus scare. The rapid growth of Omicron and the sharp upsurge in COVID-19 cases in December and January may cause new headwinds for the labour market. As an increase in infections is already impacting the demand in high-contact sectors, the greatest impact will be on labour supply, as workers who test positive are forced to isolate.
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