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.