Summary: US quit rate holds in February; “illustrates strength of labour market rebound”; job openings, separations both up.
The number of US employees who quit their jobs as a percentage of total employment increased slowly but steadily after the GFC. It peaked in March 2019 and then tracked sideways until virus containment measures were introduced in March 2020. The quit rate plummeted as alternative employment opportunities rapidly dried up but then recovered back to its pre-pandemic rate in the third quarter of 2020.
Figures released as part of the most recent JOLTS report show the quit rate remained stable in February. 2.3% of the non-farm workforce left their jobs voluntarily, the same rate as in January. While there were 51,000 additional quits, the number of people employed in the non-farm sector grew by 468,000, leaving the quit rate unchanged after rounding.
Long-term US Treasury bond yields fell moderately on the day. By the close of business, the 10-year Treasury yield had lost 4bps to 1.66% and the 30-year yield had shed 3bps to 2.32%. The 2-year yield finished unchanged at 0.15%.
“While this data lags the payrolls report, it illustrates the strength of the labour market rebound and the ability for it to persist over coming months,” said ANZ senior economist Catherine Birch.
The largest sources of additional quits came from the “State & local government” and “Other services” sectors while the “Finance & insurance” sector experienced the greatest decline. Overall, the total number of quits for the month rose from January’s revised figure of 3.306 million to 3.357 million.