Summary: US quit rate hits new high in April; jobs “easy to find”; job openings, separations both up; openings-hires gap “indication of challenges” for businesses.
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 hit a new series high in April. 2.7% of the non-farm workforce left their jobs voluntarily, up from March’s 2.5% after it was revised up from 2.4%. There were 384,000 additional quits, outweighing a 278,000 increase in the number of people employed in the non-farm sector in April.
ANZ analyst Rahul Khare said the 2.7% quit rate indicates “jobs are easy to find.”
Despite the report, long-term US Treasury bond yields decreased moderately on the day. By the close of business, 10-year and 30-year Treasury yields had both shed 3bps to 1.54% and 2.22% respectively. The 2-year yield finished unchanged at 0.16%.
The largest sources of additional quits came from the “Retail trade” and the “Professional and business services” sectors while the construction sector experienced the greatest decline. Overall, the total number of quits for the month rose from March’s revised figure of 3.568 million to 3.952 million.
Total vacancies at the end of April increased by 998,000, or 12.0%, from March’s revised figure of 8.288 million to 9.286 million, driven by a 349,000 rise in the “Accommodation and food services” sector and a 115,000 rise in the “Other services” sector. 23,000 fewer openings in the “Educational services” sector provided the single largest offset. Overall, 15 out of 18 sectors experienced more job openings than in the previous month.
Total separations increased by 324,000, or 6.0%, from March’s revised figure of 5.436 million to 5.760 million. The rise was led by the “Retail trade” sector, where there were 116,000 more separations than in March. Separations increased in 13 out of 18 sectors.