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 in the US, 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.
Figures released as part of the most recent JOLTS report show the quit rate fell for a third consecutive month. During November, 2.3% of the non-farm workforce left their jobs voluntarily, the same rate as in October but only after rounding to one decimal place. Quit rates were highest in the health care and construction sectors while the professional/business services and accommodation/food services sectors recorded the largest falls. Overall, the total number of quits fell from October’s revised figure of 3.52 million to 3.41 million.
