Job Openings Decrease in August as Employee Quits Remain Over 4 Million
The U.S. Bureau of Labor Statistics (BLS) recently released its August Job Openings and Labor Turnover Summary. The month’s reported job openings fell to 10.1 million in August, compared with 11.2 million in July. The industries with the most significant drops included health care and retail. Openings in August still outnumbered unemployed workers by about 4 million.
Employee quits, a top worker confidence metric, barely changed from the previous month, sitting at 4.2 million. This type of workplace separation increased in the accommodation and food services sector but decreased in professional and business services.
August’s BLS data follows several months of record-high job openings and quit rates while employers scramble to find workers. The latest numbers suggest that workers are confident in quitting and landing another job. After all, roughly two jobs are available for every worker who wants one.
“Companies slashed payrolls by more than was necessary during the height of the pandemic and are struggling to restore staffing levels to where they were before COVID-19 hit.”
- Bob Schwartz, Oxford Economics senior economist
Employer Takeaways
Overall hiring, quitting and layoff numbers were fairly steady in August. Fewer job openings didn’t dissuade people from quitting their jobs and moving on, but signs point to a slowing labor market.
As the labor market changes, workplace trends evolve as well. Many employers are concerned with “quiet quitting,” but a new term has risen to the forefront of the employment landscape. LinkedIn data reveals that many workers are “quick quitting,” which refers to quitting their jobs before the one-year mark. These behaviors vary by industry, but it’s a quitting trend for employers to consider. The trends signal that many workers want to find a job that offers meaning and purpose as well as compensation that appropriately matches their talents and experience. If a new job doesn’t meet the worker’s expectations, they aren’t afraid to quit quickly to find a better fit.
Later this week, the Department of Labor will report on how many jobs the U.S. economy added in September, along with the monthly unemployment rate and wage gains. Employers should continue to monitor employment trends in the evolving market to stay competitive.
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