Americans again quit jobs at a record pace
WASHINGTON – Americans quit their jobs at a record pace for the second straight month in September, in many cases to take jobs at higher wages offered by employers desperate to fill a near-record number of available jobs.
The Labor Department said Friday that 4.4 million people quit their jobs in September, or about 3% of the nation’s workforce. That’s up from 4.3 million in August and far above the pre-pandemic level of 3.6 million. There were 10.4 million job openings, down from 10.6 million in August, which was revised higher.
The figures point to a historic level of turmoil in the job market as newly empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help. Incomes are rising, Americans are spending more and the economy is growing, and employers have ramped up hiring to keep pace. Rising inflation, however, is offsetting much of the pay gains.
Friday’s report follows last week’s jobs report, which showed that employers stepped up their hiring in October, adding 531,000 jobs, while the unemployment rate fell to 4.6%, from 4.8%. Hiring rebounded as the Delta wave, which had restrained job gains in August and September, faded.
It is typically perceived as a signal of worker confidence when people leave the jobs they hold. The vast majority of people quit for a new position.
The number of available jobs has topped 10 million for four consecutive months. The record before the pandemic was 7.5 million. There were more job openings in September than the 7.7 million unemployed, illustrating the difficulties so many companies have had finding workers.
In addition to the number of unemployed, there are about 5 million fewer people looking for jobs compared with pre-pandemic trends, making it much harder for employers to hire. Economists cite many reasons for that decline: Some are mothers unable to find or afford child care, while others are avoiding taking jobs out of fear of contracting COVID-19. Stimulus checks this year and in 2020, as well as extra unemployment aid that has since expired, has given some families more savings and enabled them to hold off from looking for work.
Goldman Sachs, in a research note Thursday, estimates that most of the 5 million are older Americans who have decided to retire. Only about 1.7 million are ages 25-54, which economists consider prime working years.