Summary: US quits down; job openings down; total separations up; accommodation & food sales hit hardest
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 August 2018, stabilised and then remained largely unchanged through the remainder of 2018 before it hit a new peak in July 2019. It then tracked sideways until virus containment measures were introduced in March.
Figures released as part of the most recent JOLTS report show the quit rate has dropped away considerably from just under the record levels reached in July 2019. 1.8% of the non-farm workforce left their jobs voluntarily in March, a marked fall from February’s revised figure of 2.3%.
Quit numbers increased in the “Mining & logging” sector but all other sectors experienced declines, with the largest monthly falls coming from the “Accommodation & food services” and “Retail trade” sectors. Overall, the total number of quits for the month decreased from February’s revised figure of 3.436 million to 2.782 million in March.
Surprisingly, the recent April non-farm payroll report indicated average hourly pay had jumped from USD$28.67 to USD$30.01, a 4.7% increase over the month and a 7.9% increase on April 2019’s comparable number. One explanation is the average pay rate increased as lower-paid jobs bore the brunt of layoffs, thus reducing their influence on the overall average.
Total vacancies at the end of March fell by 813,000, or 11.6%, from February’s revised figure of 7.004 million to 6.191 million, driven by decreases in the “Accommodation and food services” and “Professional and business services” sectors. Overall, 17 out of 19 sectors experienced fewer job openings than in the previous month.
Total separations during the same period increased by 8.922 million from February’s revised figure of 5.595 million to 14.106 million. As with vacancies figures, the increase was led by the “Accommodation and food services” sector, with the “Other services” sector also providing a significant source of job losses. The only sector to reduce separations was the US Federal Government.