Fewer Americans are quitting or jumping ship
March 8, 2024
Key Takeaways
Jobs data released earlier this week show a decrease in the number of Americans quitting or changing jobs. The quits rate in January reached its lowest level since August 2020, as reported by the latest Job Openings and Labor Turnover Survey (JOLTS). While hiring activity and the number of available jobs are gradually declining from the peak levels witnessed during the pandemic recovery, the labor market remains strong, with job openings still well above pre-pandemic levels.
Career Stability on the Rise
The JOLTS report indicates that the era of carefree job-hopping may be coming to an end. In January, the quits rate measured 2.1%, the lowest reading in three and a half years. This suggests a stable job market, with employees showing greater commitment to their current roles.
Decrease in Hiring Activity and Job Openings
The report also highlights a gradual decrease in hiring activity and the number of available jobs. Although fewer employees are quitting, this indicates a slower pace of job creation. In January, the estimated number of job openings stood at 8.86 million, a slight decline from the 8.89 million recorded in December.
Strength of the Labor Market
Despite the slight decline in job openings, economists remain optimistic about the current state of the labor market. The January data portrays a stable job environment, demonstrating that job openings are still at a comparatively high level. This serves as a significant indicator of labor demand and suggests that the economy is positioned for sustainable growth and expansion.
Expert Insights
According to Robert Frick, corporate economist at Navy Federal Credit Union, the high number of job openings is a key statistic for the economy. Frick emphasizes the importance of sustained hiring, as it leads to increased income and subsequent consumer spending. With job openings supporting a soft landing in the job market, Frick suggests that the current level of hiring, ranging between 100,000 to 200,000 job additions per month, is sustainable and beneficial for economic growth.
