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 has since tracked sideways.
Figures released as part of the most recent JOLTS report show the quit rate has been maintained at just under the record levels reached in July and August. 2.3% of the non-farm workforce left their jobs voluntarily in January, the same rate as December’s revised figure of 2.3% and the same rate as in pretty much all of 2019.
Quit numbers were highest in the retail trade sector while the “Other services” sector recorded the largest fall, with the change in each sector considerably larger than those of other sectors. Overall, the total number of quits for the month increased ever-so-slightly from December’s revised figure of 3.528 million to 3.532 million in January.
Total job openings bounced after two months of falls. Total vacancies during January rose by 411,000 from December’s revised figure of 6.552 million to 6.963 million, driven by increases in the “Health care/social assistance” and “Finance & insurance” sectors. Nearly all sectors experienced increases and only job openings in the “Accommodation & food services” and wholesale trade sectors contracted. Overall, 17 out of 19 sectors experienced more job openings than in the previous month.
National Australia Bank Head of FX Strategy Ray Attrill said the day’s US data remained “a second-order concern for markets”.