4.3M American Workers Quit Their Jobs to Look for New Ones
A record 4.3 million American workers left their jobs in August. Most of the workers came from the foodservice and retail industries. This is according to a Labor Department report released Tuesday.
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4.3 Million American Workers Quit Their Jobs
The quit rate rose to 4.3 million jobs, the most in a month since December 2000. This is equivalent to 2.9%, which is an increase of 242,000 resignations compared to July 2021 (2.7%).
A total of 892,000 American workers in the foodservice and accommodation industries left their jobs. Meanwhile, 721,000 additional workers from the retail industry walked away from their jobs. Another 534,000 workers in the health care and social assistance industry also quit.
Historically, American workers quitting their jobs means people are more confident in finding new ones. For these pandemic-laden times, workers left their jobs due to health and safety concerns. They also need to address issues of child care for the kids they will leave at the house when they go off to work.
Job Quit Rates Surges Along With Rise in COVID-19 Cases
Elise Gould, the senior economist at the Economic Policy Institute, says the pandemic contributed to the rise in quitting workers.
“As job openings and hires fell in August, the quits rate hit a new series high, surging along with the rise in Covid cases and likely growing concerns about working in the continuing pandemic,” she said. Since then, COVID cases nationally are now declining. However, health experts are worried another surge is set to happen this coming winter.
As hiring numbers fell, job openings also declined sharply in August. Vacancies decreased by 659,000 from 11.1 million in July to 10.44 in August. This is according to the department’s Job Openings and Labor Turnover Survey (JOLTS).
Federal Reserve officials continuously monitor the JOLTS report for any signs of trouble in the labor market. According to FactSet, the signs are there.
10.44 million jobs are well below the expectations of 10.96 million job openings. openings, according to FactSet.
Enormous Labor Shortage in the US
Meanwhile, Chris Rupkey, Fwdbonds chief economist, concedes the need for more workers as the economy rebounds. “There is an enormous labor shortage in the country right now and it is not just because people are quitting or have child care problems, or can’t get to work due to the Delta variant.
The economy is strong as a bull, that is why there is a tremendous demand for labor,” he said. From a 7% job posting rate in July, the numbers are now 6.6%. Back in 2020, the job posts are 4.4% as the US still had trouble addressing coronavirus.
Even as nonfarm payrolls increased by 366,000, hires decreased by 439,000. As expected, the largest dips came from the leisure and hospitality industries. This pushed the total hire rate from 4.6% down to 4.3%.
Specifically, leisure dropped by 233,000, sending the rate to a tailspin from 9.5% to 7.9% in a month. In addition, government hiring also fell sharply from 2.2% to 1.4% in August.
Federal Reserve Thinking of Pulling the Plug on Pandemic Policies
With the trouble besieging the labor market, Federal Reserve officials are rethinking their strategy. They are currently deliberating on whether it’s time to pull back on the policies that helped during the early months of the pandemic.
The Fed expects to scale back on monthly bond purchases. However, they will only raise interest rates when the labor market stabilizes.
Watch the BNC News video report asking why 4.3 million Americans quit their jobs in August:
Why do you think that American workers are quitting their jobs in retail and foodservice? Is it because they can find new and better-paying jobs? Or is it because they cannot afford to go out to work during the pandemic?
Let us know what you think. Share your comments below.
Foodservice and retail are the lowest paying jobs. I was in the food industry for 28 years. I never made the amount of salary that others made in customer service jobs. While foodservice was somewhat stable, the corporation greed used that against lower level employees.
I’m so sick of hearing unsafe and pandemic. Neither are true. Ohhh no…no one has ever had the flu before. Give it a rest
I concur with Jewel. As long as the government gives and promises hand-outs, people will not work. There seems to be no real work ethic anymore nor the value to oneself. Sad day for this Nation indeed!
THE GOVERNMENT RIGHT NOW TRY TO CHANGE OUR COUNTRY TO SOCIALISM.THAT WHAT THEY’RE DOING RIGHT NOW IN ORDER TO CONTROL PEOPLES.THIS IS COMMUNIST STYLE! ALL THE WORKERS GET TRAP INTO THEIR PLAN AND CAN’T GET OUT LATER! WAKE UP AMERICAN!
All by design, all by design. Watch how bad it’s going to get. They own the food supplies, they own it all! Remember, it’s going to be a long, dark winter. The devil has already warned.
It has nothing to do with not having mask mandates. That is the reason I will NOT go to work for most of these places that are hiring. Florida and Texas and Arizona are thriving because of the fact that they are allowing people to be free. This whole segment is propaganda about masks and the current administration’s BS narrative. Masks DONT stop this virus. My son still got the virus, being masked up at school because MASK DONT WORK.
It is because of the president that stole the election. These people working at these low paying jobs can get more money living off the government. That is exactly Biden and Kamalas plan. They want Americans to rely on government funding so the government has full control over Americans. Notice is just the low paying Jobs that are causing high unemployment rates. These people know they will send another stimulus check thier way. Now that those people are on board they are trying to get higher paid Americans that are still working to quit or be fired by enforcing vaccine mandates to large company’s. I’m glad I live in Texas where our governor is putting a stop to that. Wake up people!
as long as the government gives out stimuius checks the people are gonna rely on that!!!and not work.so some people need to get off their lazy asses and get a job.so some people should quit their bellyaching and be thankful more than what they are.as for the covid and wearing a mask,wake up people the masks dont work to prevent covid!!!!!! i wont get the vaccine and why wear a mask when the masks dont prevent it!!!!!!!people that have got the vaccine are still getting covid.wake up america!!!!!!!i dont watch the news anymore cause it is only B.S.
Ditto what has been shared. The virus has been the political force driving the socialism/communist process this present administration is using for their gains. Giving out “free” money is BAD for the economy, dignity. Remember the pursuit of happiness we are allowed… hard to pursue when your business is shutdown.