Every day while I’m driving, I see “Now Hiring” signs on nearly every other business I drive by. When I go inside of my favorite restaurants, the wait times are longer than usual because they are short staffed. But how can a business be short-staffed when they post “Now Hiring” signs with pay well above minimum wage? Well, it seems people just don’t want to work those jobs anymore.
According to the Bureau of Labor Statistics, 4.3 million American workers quit their jobs in December–that’s 2.9% of the entire workforce. In November, a record 4.5 million workers quit. And while workers were leaving their jobs, job openings increased, and layoffs decreased.
Overall, this shows how frantic companies were to fill positions. Workers continued to leave in droves while new hires remained high. So, workers who quit were likely transferring jobs rather than sitting around. But why are so many American workers leaving their jobs? It seems to be an indicator of a shift in the labor market that appears to be shifting power away from businesses and toward employees. They are seeking new opportunities with higher wages.
One of the major concerns for the US labor market this year is whether this trend continues and if job switching will keep fueling wage increases. Do you think workers will continue to leave their jobs in favor of better opportunities? Have you left your job for a better opportunity?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.