Great Jobs News: Rate of Quitting Workers Highest Since 2008

By Jon C. Ogg Published Nov 13, 10:50AM EST

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The U.S. Labor Department has released its monthly JOLTS (Job Openings and Labor Turnover Summary) report for the month of September. While this report has a one-month lag, it indicates that workers are getting more and more comfortable quitting their current jobs to move into other positions.

While it might not seem good to have many workers quitting, this is a key factor in just how resilient a labor market is. Think of it like this: If you are too worried about the risk of taking a new job at a new company, then it leaves you stuck where you are and perhaps without opportunity for advancement.

The Bureau of Labor Statistics (BLS) data showed that there were 4.7 million job openings on the last business day of September. This is actually a drop from the 4.9 million openings in August. The job openings rate was 3.3%, little changed for total private and government in September, but the level of job openings decreased for arts, entertainment and recreation. The job openings level was little changed in all four regions.

Within that separations component, the quits rate of 2.0% was above the 1.8% reading from August. That quits rate is a post-recovery high as well, all the way back to mid-2008.

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The BLS reported that hires were 5.0 million (up from 4.7 million in August) and separations were 4.8 million, both of which rose in September. One thing worth noting was that this was the largest hires report since December 2007. This further supports the notion that workers who quit one job are rapidly snatched up and hired by other employers.

The “quits” rate in total separations generally refers to voluntary separations initiated by the employee. Layoffs and discharges are involuntary separations initiated by the employer. There were some 4.8 million total separations in the month of September, up from 4.5 million in the month of August, and the separations rate was 3.4%.

The total 2.8 million number of quits in September was shown to be its highest level going back to April of 2008, with a new rate of 2.0%. The BLS said that the quits levels rose in professional and business services, health care and social assistance, and state and local government. Quits also increased in the Midwest region.

Investors know that the so-called JOLTS report is not a true market-moving economic release. What it does is offer more hope to workers who have considered leaving their current job to move into a better position elsewhere.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.