Record Number of American Workers Quitting Jobs in September


Employers are still struggling to fill millions of vacancies and retain the workers they already have.

More than 4.4 million workers left their jobs voluntarily in September. The Labor Department said on Friday. that’s it 4.3 million in August and it was the most in the twenty years the government has followed. In entertainment and hospitality businesses alone, nearly a million workers have left their jobs, reflecting fierce competition for workers there as the industry is rebuilding after last year’s pandemic-induced shutdowns.

10.4 million job postings in the United States at the end of September were slightly lower than in August, but still extraordinarily high by historical standards.

However, the recovery of actual hiring was slower and was essentially flat in September as businesses struggled to attract candidates. There were roughly 75 unemployed for every 100 job postings in September, the lowest rate on record. Separate data released last week by the Department of Labor showed that Employment growth rebounded in October however, the workforce is barely growing, indicating that employers’ recruitment challenges remain.

“You see demand continues to rise without a countervailing increase in talent,” says Ryan Sutton, regional manager of Robert Half International, a recruiting firm. “Until some new talent arrives, until we bring the marginal workers back to the market, this is very likely to continue.”

Economists say one number of factors explain slow return of workers. The pandemic continues to disrupt childcare and makes it difficult for some parents to work; other workers are worried about contracting the virus or passing it on to high-risk family members. Many Americans have also increased their savings during the pandemic, allowing them to be more selective about their jobs.

The labor crisis gives workers the upper hand in negotiations. Wages have risen sharply in recent months, especially in service jobs, but wages in other sectors lag behind the inflation rate.

The recent rise in the number of workers leaving shows that many are taking advantage of their leverage to get or seek better-paying jobs. At the same time, staff shortages in many businesses can stress remaining workers, forcing even more people to quit.

“We are currently seeing huge increases in turnover in the industries that are the most difficult to recruit,” said Nick Bunker, director of economic research at the Indeed job site.

Kaylie Sweeting has worked as a bartender in Short Hills, NJ for most of the pandemic, despite concerns about interacting with unmasked customers and frustration with low wages. But when the restaurant pressured a colleague to come to work this summer as a patient, Miss Sweeting quit.

“The job was definitely not worth it anymore,” he said. “It hurts me that a company I’ve given my time to doesn’t prioritize me or my safety.”

Ms. Sweeting, 23, and her partner, a cook, decided to take the money they had saved to buy a house and open their own restaurant instead. They recently signed a lease and started renovations with plans to open a vegan restaurant early next year. They try to apply the lessons they have learned as employees by promising decent wages, paid leave and other key benefits that restaurant jobs often fail to provide.

“I really like the industry,” said Ms. Sweeting. “I just don’t like the way it’s managed. I feel the only way to change that is to implement the change yourself.”



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