WASHINGTON (Businesshala) – The number of Americans who voluntarily quit their jobs rose to a record high in August, while declining by the most in eight months, underscoring the difficulties businesses are facing as they face millions of vacancies. trying to fill.
The Labor Department’s monthly job openings and labor turnover survey, or JOLTS report, followed Tuesday on the heels of news last Friday that the economy created the fewest jobs in nine months in September. The JOLTS report, which also showed more than 10 million vacancies in the economy, was another reflection of an economy reeling under shortages, fueling inflation and stifling growth.
Christopher Rupkey, chief economist at FWDBONDS in New York, said: “There are help-wanting posters in every shop window on Main Street, and labor shortages are exacerbating supply disruptions across the country, igniting inflationary fires. ” York.
August saw an increase of about 242,000, bringing the total to a record 4.3 million. 157,000 people left the housing and food service industry, while 26,000 left the wholesale trade business. State and local government education saw 25,000 departures.
Most likely people are leaving their jobs for fear of contracting COVID-19. Leaving numbers have increased in the South and Midwest regions, which have suffered the brunt of a heat wave of coronavirus infections driven by the Delta variant.
Vaccination rates are low in the South and Midwest, and some states, such as Florida and Texas, have banned the mask requirement.
The resignation rate reached an all-time high of 2.9% in August, up from 2.7% in July. The job loss rate is generally viewed by policy makers and economists as a measure of job market confidence. The high quit rate suggests that wage inflation will continue to build as companies scramble for workers who have unlimited options.
Hiring decreased from 439,000 jobs to 6.3 million. The decline was led by the housing and food service industry, where 240,000 jobs fell in payrolls. Recruitment in state and local government education declined by 160,000.
The reduction in hiring was more pronounced in the Midwest region. The hiring rate fell from 4.6 per cent to 4.3 per cent in July.
The government reported last Friday that non-farm payrolls increased by only 194,000 in September, the smallest gain since December 2020 after rising 366,000 million in August.
Job opportunities, a measure of labor demand, fell 659,000 to a high of 10.4 million on the last day of August. There were 224,000 fewer vacancies in the health care and social support sector. Employment opportunities in the housing and food service industry fell to 178,000. There has been a drop of 124,000 posts in state and local government education vacancies.
Regionally, job opportunities fell in the Northeast and Midwest. The job opening rate fell from 7% to 6.6% in July.