Americans’ Growing Reluctance to Quit Their Jobs, in Five Charts

livemint.com:

The surge in Americans quitting their jobs has fallen from record highs it hit during the pandemic. Why that is happening could say something about where the economy is headed. Quitting is a sign a worker is unhappy with their job, but also a sign they are confident they can find another.

Quits trending down can be worrisome. The quits rate fell in each of the past three recessions. But workers today are also sticking with their jobs for other reasons, including greater flexibility, better pay—or even that they are happy.

And that suggests the economy has more staying power. Why workers quit, then stopped The so-called quits rate—the number of resignations as a share of total employment—was 2.3% in July, down from a 3% peak in April 2022. Readings this summer were back to levels from before the pandemic began.

Fresh Labor Department data on the quits rate and job openings is due on Tuesday at 10 a.m. Eastern time. When the economy emerged from a short-but-sharp slump in early 2020, after Covid-19 lockdowns, demand for workers quickly heated up as short-staffed businesses reopened.

Employers raised wages and improved benefits to attract new hires. More Americans quit jobs to jump to better-paid positions, a phenomenon some called the ‘Great Resignation’. The rate at which Americans quit has more recently cooled as the premium they received to switch jobs has narrowed.

Weighing the pros and cons of walking away Switching jobs comes with risks: new colleagues, a learning curve and many unknowns about working conditions at a new employer. For some, it is an easier choice to stay put if the conditions are right. Paull Young planned to quit his job as a partnerships manager at Facebook parent Meta Platforms in late 2020 to