According to March 2016 Bureau of Labor Statistics figures, Americans quit their jobs at a higher rate during that month in comparison to February. This promising news comes off the back of a disappointing jobs report.
Why is it encouraging that people are quitting their jobs, you may ask? Well, people quit their jobs when they know that they’re going to be going to another job, or simply strongly feel another job is available for them.
Thus, job quitting, or “quits”, rate can serve as a good indicator of the economy, both objectively and in terms of the general view of the populace.
The quits rate for March showed almost three million Americans left their jobs. These figures align well with rates before the Great Recession in 2008. It should be mentioned that this figure has hovered in this general area for months, with the peak so far being 3.1 million individuals departing from their job in December of last year.
With the context of the jobs report, we have two different, almost contrasting phenomena occurring: although jobs are being created at a lesser rate, people are quitting their jobs more.
There is no thorough explanation as for why this is the case, but it is likely that many factors contribute. The burgeoning gig and freelance economies likely play a role for some.
For those curious, jobs in leisure, hospitality, and retail experience the highest turnover on average. Employees in financial services and government jobs experience the least turnover.