Many recruitment billboards are placed everywhere on American streets – Photo: AL JAZEERA
The rate of American workers leaving their jobs set a record in early 2022. After hitting 2.9% this spring, the quit rate fell to 2.7% in July, according to data released by the Labor Department. announcement action.
The idea of quitting a job amid a rising cost of living and an uncertain economic future seems contradictory. The Hill.
However, the labor market still favors job seekers who see many opportunities to increase personal income, replacing rising costs caused by inflation.
Ann Elizabeth Konkel, economist at Indeed Hiring Lab, wrote in an August 28 analysis: “Despite the recent decline, the rate of job growth still outstrips the number of unemployed with a significant margin, showing how tough the labor market is still.”
According to data from the US Department of Labor, each unemployed American has two job paths open to them. This gives job seekers many new job opportunities, with better wages or working conditions.
Businesses are still scrambling to find enough workers. Labor demand is much higher than pre-COVID-19 levels.
As Konkel explains, job seekers on Indeed.com are looking for higher salaries than ever before.
The number of people looking for jobs with a salary of 20 USD/hour has outstripped those looking for 15 USD/hour in June 2022. The number of people looking for jobs with $25 an hour has increased 122% in the past 12 months.
Pressure to quit to find a better paying job has been heightened in the private sector, where 3.5% of the workforce left their current employer in July.
Workers in industries with low wages and harsh working conditions are also willing to quit to find a place with higher wages.
The entertainment and hospitality sector posted a massive 6.1 percent quit in July. Although the sector’s unemployment rate has plummeted from 6.9 percent a year ago, it’s still close to double double the national unemployment rate.
Restaurants and bars in particular have struggled to return to pre-pandemic employment levels, despite rapid wage increases. The pressure has also made it nearly impossible for these businesses to lay off employees, even amid erratic turnover.
Julia Pollak, chief economist at online employment firm ZipRecruiter, said it was unable to lay off workers because it could not find a replacement.
“The drop in the number of employees leaving jobs in industries like hotels is huge,” she explains.