 ICYMI: A Record Number of Employees Quit Their Jobs in August In case you missed it, a record high number of U.S. workers quit their jobs in August, according to the latest monthly report from the Bureau of Labor Statistics. Despite the drop in workforce, the economy added back a disappointing number of jobs in September. Even with higher salaries and bonuses, employers are finding it difficult to fill open roles.
What's Going on With the Labor Market? The unemployment rate was 4.8% in September, a third of its pandemic-era high, but millions of workers remain unemployed even though there are job openings waiting to be filled—a sign the labor market is taking longer than expected to regain its footing. At a time when so many people in the U.S. are still struggling financially, it would seem that businesses would be flooded with job applicants. But companies' efforts to hire employees just aren't working, even after federal pandemic unemployment benefits programs ended.
Why Are Workers Quitting? Economists believe an inability to find child care, increased worker retirement, and people rethinking their careers are all possible reasons for the "Great Resignation," what many are calling this period of mass exodus from the workforce. Workers have the upper hand, but they're refusing to go back to their old jobs or take on grueling work, for low pay.
Lingering worries about the pandemic are also a contributing factor, as vaccination rates have started to wane. According to a Verywell Health report, vaccine mandates haven't forced workers to quit, but fears over whether employers create COVID-safe workplaces could drive employees away. More than half of people surveyed who are working in person said they have considered making changes to their working situation because of their employer's response to COVID-19.
Why Should You Care? If you're currently unemployed in the U.S. and looking for work, you'll likely find it. And with employers desperate for workers, you may be able to negotiate a higher salary or other perks and benefits. If you are employed, you may see the labor shortages take a toll on your wallet. Prices on goods and services are increasing, while the lack of workers is also putting a strain on supply chains, making the transport of goods around the country extremely difficult.
- Kristin
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