A Tuesday report clearly illustrated why America’s employers are having difficulty filling jobs.
According to the Labor Department, quits rose to 4.3million in August. This is the highest number of quits since December 2000 and an increase from 4 million in July. According to the report, August saw a slowdown in hiring, with 10.4 million jobs available, down from 11.1 million the month before.
These data help to solve a mystery that hangs over the job market. Hiring declined sharply in September and August, despite the fact that there were near-record numbers of jobs posted. Open jobs have increased by 62% in the last year. However, overall hiring has declined slightly, according to Tuesday’s report.
Friday’s government announcement stated that September job gains were slow for the second consecutive month. Only 194,000 jobs were added. However, the unemployment rate dropped to 4.8% from 5.2%. Friday’s total hiring is net after taking into account job losses, quits, retirements, and layoffs. The raw numbers of Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) show that August total hiring fell to 6.3million from July’s 6.8 million.
Jennifer Lee, an economist with BMO Capital Markets, stated that the data “is highlighting the immense problems businesses face.” She sent an email to Jennifer Lee. “Not enough people. There is not enough equipment or parts. Customers are still waiting for their orders or placing their orders. It is a strange world.
Fear of the delta variant may be partly responsible for the rise in quits. Fear of the disease may have driven many people out of work to quit, as well as driving them to quit.
In August, COVID-19 cases rose dramatically. Restaurants and hotels saw a surge in quits, while other public-facing jobs such as education and retail saw a rise.
The number of people quitting restaurant or hotel jobs has nearly doubled compared to a year ago.
The government stated that Quits rose most in the South, Midwest and Midwest regions, which were the areas with the worst COVID outbreaks during August.
It is usually a sign of a positive sign for the job marketplace when workers leave. This is because most people will quit if they have other jobs or feel confident that they can find another one. There is good news. The August increase was likely due to employers wanting workers and increasing wages. Many workers believe they can get better compensation elsewhere.
However, the fact that quits were concentrated in areas that have close contact with the public shows that COVID fear played a significant role in the rise in quits. Many people might have quit without having any other job options.
There is also an international dimension to the sharp rise in job openings: The United Kingdom has seen a record number of job vacancies, but this may be partly due to the departure of many European workers from the U.K. following Brexit.