In November, workers quit in record numbers. However, total job openings fell a little. Labor Department reported Tuesday.
According to the Department’s Labor Turnover Survey and Job Openings Survey, the so-called quits rate soared to 4.53million for the month. It was 8.9% more than October’s and beat September’s high of 4.36 millions. In September, the quit rate for workers was 3.3%.
A phenomenon known as the Great Resignation is when workers are moving on partly due to greater mobility in the labor marketplace, which has seen job openings outnumber those seeking work.
The November total number of open jobs was 10.56million, lower than the 11. million FactSet estimate and down from 11.09 millions in October. According to the The However, the level of job openings was much higher than that of 6.88 million people who were out-of-work and searching for work in November. government’s nonfarm payrolls reportThis month.
Although the October rate of job openings was down to 7%, it still beat the previous year’s 4.5%.
The Great Resignation is not slowing down, and quits have set a new record. Robert Frick (corporate economist, Navy Federal Credit Union) said that the question of why is not being answered. COVID-19 fears and burnout continue, but many Americans are able to quit because of the increasing number of jobs and the higher pay.
Separate economic reports Tuesday revealed that December manufacturing activity was lower than anticipated.
It ISM Manufacturing IndexA reading of 58.7% was recorded, lower than the 60% expected and an increase from 61.1% in November.
The index’s biggest detractors were supplier deliveries which declined 7.3 percentage points and prices which plunged 14.2 percentage points. This is at a moment when inflation has reached its highest point in almost 40 years. According to survey responses, prices have been declining for both steel and oil.
If the reading is above 50%, it means that manufacturing is growing in general. A reading below 50% indicates that it is mostly contracting.
The positive side of the story is that the employment index rose by 0.9 percentage points to 54.2 percent, which indicates that the economy continues to be strong in terms of hiring.
JOLTS showed that however, there were some labour market movements.
An industry level, the hospitality and leisure sector saw an 8.7% drop from 10.1%. The reason was a decline in lodging and food service to 8.9%, down from 10.5%. While the hire rate for leisure and hospitality was slightly higher at 8.1%, it rose to 6.4%.
Covid cases soared and the stress in the social-care industry was evident. The quits rate reached 3% per month which was the highest recorded.
This report is released three days prior to the Labor Department’s closely-watched December nonfarm payrolls counts. Dow Jones surveyed economists and they expect 422,000 new jobs to grow, with a lower unemployment rate of 4.1%.
Clarification: The quits level increased 8.9% from October. This has been clarified in this story.