It’s spreading through companies faster than the omicron variant. In fact, according to the Bureau of Labor Statistics, there were a record 4.5 million workers who quit their jobs in November 2021. This represents a whopping 3% of the total workforce and a remarkable 37% increase over November 2020. This number (the BLS calls it “quits”) gives credence to those who now say we are in the period of The Great Resignation.
As dangerous as that seems to the health of businesses everywhere, we cannot lose sight of the fact that the number of hires outpaces the number of quits. There were 10.6 million job openings at the end of November and 6.9 million unemployed people. My calculator shows 1.5 jobs per unemployment person.
So, the nation is flush with jobs but short on candidates willing to fill them. This gives the American worker great confidence to quit their current job to seek better pay, move to more desirable jobs, or even make a step up the corporate ladder. Nirvana!
Calling this The Great Resignation may be a bit misleading. So many envision a mass exodus with those quitting and leaving the workforce to live out their lives on a beautiful tropical island. The truth is that most are quitting only to stay in the job market but with another employer and – most likely – higher wages and greater opportunity.
We can see this in the BLS Participation Rate report which reflects the percentage of the population that is either working or actively looking for work. The rate was dropping precipitously from the pre-pandemic level of 62.6% in March 2020. However, now it is “working” its way back up (pun intended) as it reached 61.8% in November 2021.
Industries Most Affected
Leisure and Hospitality 6.4% quits
Retail Trade 4.4% quits
Professional and Business Services 3.7% quits
Trade, Transportation and Utilities 3.6% quits
Healthcare and Social Assistance 3.0% quits
Click here for a more comprehensive list.
To be sure, there is plenty of bad news out there as cash from the government begins to dry up, inflation is proving not to be as transitory as economists first thought as it continues to eat into the sizable wage increases that so many individuals were thrilled to receive. And Covid is still not defeated. But the workforce is still feeling emboldened to say “adios” to their employer for the opportunity to enjoy greener pastures.
