A record high of 4.5 million Americans left their jobs in November 2021 even though the vacancies remained elevated, suggesting a high churn in the job market.
As per Bloomberg news, departures increased among all industries and pushed the quits rate by 3%, similar to the data way back in 2000. However, the number of vacancies fell from the revised 11.1 million October to 10.6 million according to a survey conducted by JOLTS or Job Openings and Labour Turnover Survey from Labour Department.
A survey of economists by Bloomberg projected a median forecast of 11.1 million openings. The drop in vacancies was the highest since April 2020 but remained above the pre-pandemic levels.
The level of quits was unprecedented, with about 1 million leaving in the hospitality and leisure sector alone, suggesting a struggle for employers to retain talent. In the meantime, the increase in monthly hirings showed that companies could make some headway in filling vacancies.
The data released by JOLTS comes ahead of the monthly report on employment by the Labour Department on Friday. The report forecasts showed the country added 420,000 jobs in the year-end month.
As per the JOLTS report, the jump in resignations was the most in the food and accommodation services. The second-most quits were in the warehousing and transportation industry. Health care also saw high resignations.
More impact is expected in the wake of surging Covid-19 infections in recent weeks in the job openings and supply of workers. More Americans will step back from activities like traveling and dining in restaurants leading to businesses struggling to keep open.
The most significant decrease in vacancies was in the Midwest and South of the country across construction, food and accommodation services, and non-durable goods manufacturing. The total hiring remained little changed at 6.7 million in November, while the discharges and pink slips were steady.
