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, 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 but whether new Fed chief Jerome Powell regards the indicator with as much interest is as yet unknown.
Figures released as part of the most recent JOLTS report show the quit rate remained unchanged after revisions at 2.4% of the non-farm workforce at the end of August. Quit rates were highest in the “wholesale trade” and “healthcare/social assistance” sectors while the “professional/business services” and “constructions” sectors each recorded the largest falls.