Job Openings and Labor Turnover Survey (JOLTS) announced just recently that around 4.3m people quit their jobs since January this year. Numbers of job openings and demand on raising payments follow the Great Resignation trend. Based on the federal data issued on Wednesday this week, the Great Resignation is a scary phenomenon due to the surge of pandemic.
The U.S. department of labor said that based on the annual report, there have been at least 48m people quit their job. Daniel Zhao, a senior economist at Glassdor career site argued that the Great Resignation had a significant impact on the quitting trends. Job resignations are above 23% in pre pandemic levels.
Economists analyze that people quit jobs to leave the labor market. But the high level of resignation also indicates that a strong job market for workers is full of opportunities. The Labor Department confirmed that almost 11.3m job openings exceed the December record. As a result, the high labor demand allows employers to pay higher wages. They must battle with attracting talents. So higher pay is luring workers aways from their current jobs.
Taking advantage of this labor demand, the workers are quitting their jobs. In many sectors like manufacturing, leisure, hospitality, and retail trade, resignations are nightmares. Labor demand here is always high but workers keep resigning. In private sectors, employers have raised hourly pay by around 5%.
However, based on the Fed Bank of Atlanta, the wage growth is higher for job-switchers than those who keep the same job. These people got a salary raise of 5.8/5 versus 4.5% respectively. So, in a while the factor of high level job openings would elevate them. The labor market would continue to surge. It gives job seekers opportunities they do not have before.
