Workers all over the country have been demanding higher wages as of late, and the cost of these demands has caught up with business owners and restaurant chains. In fact, according to the Labor Department’s latest report there were 4 million workers who quit their jobs in April, a 20-year record. Moreover, the rate of workers voluntarily leaving their jobs also hit an all-time high of 2.7% that month.
Some economists have predicted that this trend is far from over, for example, based on a new labor trend, Economist Julia Pollak suspects a wave of workers may soon quit in the coming months. But when it comes to employees leaving, not all industries are made equally, in fact, the accommodation and food services industry along with the retail trade industry are the two that saw the largest quit rates at 5.6% and 4.3% respectively.
This trend comes amid the pandemic still wearing off its affects and the US’s unemployment rate still being quite high relative to past levels. Michael Pearce, senior U.S. economist at Capital Economics explained it well finding that “The rate at which people are quitting is ridiculously high, given how high unemployment still is,” and that “People are so confident in their prospects of finding a new job that they’re quitting at unprecedented rates.” Because of this confidence some are seeing this as a positive sign in the economy as more people seem to feel confident and optimistic. Not only is it good for the Economy according to some, but it is good for the pockets of workers around America. That’s because companies that announced increases in wages such as Bank of America and Walmart have seen a following surge in applicant interest. What do you think about unemployment and the economy? And should workers keep quitting?
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.