More People Are Quitting Their Jobs, Which Is A Great Sign For Economy
Despite lingering worries about the economy, more and more people are quitting their jobs. Seems incongruous no?
More than 2.7 million Americans, or two percent of all workers, quit their jobs in September, according to a report released by the Bureau of Labor Statistics on Thursday. “That’s the highest ‘quit rate’ since April 2008, when the Great Recession was still a toddler,” reports The Huffington Post. The BLS report showed that there were 4.7 million job openings in September, near the 13-year high the economy reached in August.
Believe it or not this trend is great for the economy. There are only good reasons people quit their jobs– they have another job set up or feel confident enough in the market that there are other job options. Also, leaving one job for another can also lead to a raise in pay, so a higher quit rate could indicate that wages are no longer stagnant.
Some of the highest quit rates, however, were in low-wage industries like hotels, restaurants and retail, which tend to have high turnover rates. Experts say stagnant wages are a big reason for the economic worry many Americans still have. So perhaps these folks are leaving for higher-wage jobs, but they’re still not high enough to motivate people to stick with their employers for the long haul. We’ll keep an eye out for any further analysis.
Also, the number of people exiting their jobs voluntarily is a lot more than the 1.6 million who were fired of laid off. “The rate of workers being fired has remained steady for the last two years,” reports CNN Money.