The “quits” rate time series produced by the Job Openings and Labor Turnover Survey (JOLTS) is a leading indicator of US hourly pay. As wages account for around 55% of a product’s or service’s price in the US, wage inflation and overall inflation rates tend to be closely related. Former Federal Reserve chief Janet Yellen was known to pay close attention to the quit rate.
Figures released as part of the most recent JOLTS report show the quit rate slipped a little as the total number of employees leaving their jobs during the month fell back. During October, 2.3% of the non-farm workforce left their jobs voluntarily, a lower rate than September’s comparable figure of 2.4%. Quit rates were highest in the health care and transport sectors while the retail and “other services” sectors recorded the largest falls. Overall, the total number of quits fell from 3.56 million to 3.51 million.
