Summary: US quit rate unchanged in November; job openings down by 1.6%, total separations up 5.3%; US Treasury yields slip.
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 quite quickly over the next six months.
Figures released as part of the most recent JOLTS report show the quit rate remained unchanged. 2.2% of the non-farm workforce left their jobs voluntarily in November, the same rate as in September and October. The largest source of additional quits arose from the “Accommodation and food services” sector, while quits in the “Health care and social assistance” sector fell by a significant amount. Overall, the total number of quits for the month increased by 6,000 from October’s revised figure of 3.150 million to 3.156 million.
April’s non-farm payroll report indicated average hourly pay had spiked in that month, possibly the result of fewer lower-paid jobs relative to higher paying ones. Annual growth rates of subsequent months’ figures then fell back, hitting a recent low of 4.4% in November before accelerating to 5.1% in December.
Total vacancies at the end of November decreased by 105,000, or 1.6%, from October’s revised figure of 6.632 million to 6.527 million, driven by a 48,000 fall in the “Durable goods” sector and a 45,000 fall in the “Information” sector. 54,000 additional openings in the “Professional and business services” sector provided the single largest offset. Overall, 11 out of 18 sectors experienced fewer job openings than in the previous month.
Total separations during the same period increased by a net 271,000, or 5.3%, from October’s revised figure of 5.142 million to 5.413 million. The rise was led by the “Accommodation and food services” sector, where there were 326,000 more separations than in October. Separations increased in 10 out of 18 sectors.