The Bureau of Labor Statistics (BLS) released the job openings and labor report for August today [DATA HERE]. The data shows that 4.3 million U.S. workers voluntarily quit their jobs in the month of August. This is a significant jump from prior.
The “Quits” section [Table 4 breakdown] shows quits increased in August to 4.3 million (+242,000). The quits rate increased to a series high of 2.9 percent. Quits increased in accommodation and food services (+157,000); wholesale trade (+26,000); and state and local government education (+25,000). Quits decreased in real estate and rental and leasing (-23,000). The number of quits increased in the South and Midwest regions.
While this data is interesting and significant, it is only one data point within the larger U.S. main street economy. Rather than me extrapolating on this data, I would like to hear your perspective based on your own local feeling about what is going on in your area.
Key points of reference would include:
- While this is potentially related to vaccine mandates, the time frame in August is before the Biden mandatory vaccination requirement made on September 9th.
- Housing prices overall (macro level) were/are high. There is a lot more home equity amid working class families who own homes. This could translate to a greater ability to change jobs or cash out for a longer financial plan.
- Workers in the real estate and leasing segment did not quit.
- The highest quit rates were in the regions with the lowest cost of living.
- Inflation is massive
I am interested to read your opinions on what could potentially be the largest contributing factor based on your town, city or neighborhood.
Ignore the financial pundits. The question is: what do you make of this?
Jennifer Psaki was asked about this quit jump and she was poorly briefed in order to answer the question. She is clueless.