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Americans Quit Their Jobs at a Record Pace in August

October 12, 2021by Christopher Rugaber, AP Economics Writer
A sign in the parking lot of Mariano's grocery store advertises the availability of jobs Friday, Oct. 8, 2021, in Chicago. One reason America’s employers are having trouble filling jobs was starkly illustrated in a report Tuesday, Oct. 12: Americans are quitting in droves. (AP Photo/Charles Rex Arbogast)

WASHINGTON (AP) — One reason America’s employers are having trouble filling jobs was starkly illustrated in a report Tuesday: Americans are quitting in droves. 

The Labor Department said that quits jumped to 4.3 million in August, the highest on records dating back to December 2000, and up from 4 million in July. Hiring also slowed in August, the report showed, and the number of jobs available fell to 10.4 million, from a record high of 11.1 million the previous month. 

The data helps fill in a puzzle that is looming over the job market: Hiring slowed sharply in August and September, even as the number of posted jobs was near record levels. In the past year, open jobs have increased 62%. Yet overall hiring, as measured by Tuesday’s report, has actually declined slightly during that time. 

The government said Friday that job gains were weak for a second straight month in September, with only 194,000 jobs added, though the unemployment rate fell to 4.8% from 5.2%. Friday’s hiring figure is a net total, after job gains and quits, retirements and layoffs are taken into account. Tuesday’s report, known as the Job Openings and Labor Turnover Survey, or JOLTS, includes raw figures, and showed that total hiring in August fell sharply, to 6.3 million from 6.8 million in July. 

The data is “highlighting the immense problems businesses are dealing with,” said Jennifer Lee, an economist at BMO Capital Markets, in an email. “Not enough people. Not enough equipment and/or parts. Meantime, customers are waiting for their orders, or waiting to place their orders. What a strange world this is.”

The jump in quits strongly suggests that fear of the delta variant is partly responsible for the shortfall in workers. In addition to driving quits, fear of the disease likely caused plenty of those out of work to not look for, or take, jobs. 

As COVID-19 cases surged in August, quits soared in restaurants and hotels from the previous month and rose in other public-facing jobs, such as retail and education. 

Compared with a year ago, the number of people quitting their restaurant and hotel jobs has almost doubled. 

Quits also rose the most in the South and Midwest, the government said, the two regions with the worst COVID outbreaks in August. 

When workers quit, it is typically seen as a good sign for the job market, because people usually leave jobs when they already have other positions or are confident they can find one. The large increase in August does include some goods news: It likely reflects the fact that with employers desperate for workers and raising wages, many workers feel they can get better pay elsewhere. 

But the fact that the increase in quits was heavily concentrated in sectors that involve close contact with the public is a sign that fear of COVID also played a large role. Many people may have quit even without other jobs to take. 

The sharp increase in job openings also has an international dimension: Job vacancies have reached a record level in the United Kingdom, though that is partly because many European workers left the U.K. after Brexit. 

Employment

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