Thursday, November 13, 2014
Why are American’s Quitting Their Jobs?
According to a report by the Bureau of Labor Statistics 57.5% of people who left their jobs did so under their own free will. A total of 5.03 million employees were added which boosted the hiring rate to 3.6%. At the same time 2.75 million people resigned in September with a quit rate of 2%. Make no mistake, the job market is heating up and employees are finding options that were not available to them a few years ago.
When the economy is poor and employment prospects are low employees naturally stay in their jobs for fear that they will not be successful in securing new employment. Likewise, there may be an abundance of people seeking the same position which raises the stakes when attempting to jump ship. It is often wiser to stay where you are at until things get better.
At present the amount of people seeking the same position are 2 to 1. Those are pretty good odds for people who want to beat out the competition. When those odds are 3 or 4 to 1 that makes uncertainty higher. When unemployment declines and businesses start hiring it sucks some of the slack out of the workforce creating advantages for job seekers.
Consider the low unemployment rate of 5.8% there is growing competition among companies to retain top talent. In any recovering economy usually college educated and highly technical jobs are the first to come back. These are the positions employers need to fuel their growth and development.
The people who have fewer opportunities are those in traditional middle class jobs such as manufacturing. Without a reemergence of manufacturing within the country it can be difficult for a person with moderate education and an industry based skill set to obtain better employment unless the entire industry comes back.
Job hopping is one sign of an improving economy. This means there is some flexibility within the market and realignment going on. During the recession realignment is painfully based on lay-offs but in good times realignment is more voluntary based on the opportunities of workers that want to better their position. Work environment, compensation, culture, promotion, etc… all play a factor in a person’s decision to stay or move.