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According to the Job Vacancies and Labor Flow Survey (JOLTS) report released on Tuesday, about 2.9% of the labor force resigned in August, up from 2.7% in July. This is the highest smoking cessation rate since the start of the report at the end of 2000.
As more and more Americans demand higher wages, better working conditions and more flexible arrangements, the number of workers resigning has increased by 242,000 from July. With regard to accommodation and catering services, wholesale trade, and state and local government education, the number of exits has increased.
PNC Chief Economist Gus Faucher said: “If you are not satisfied with your job or want a raise, it is easy to find a new job in the current environment.” “We see people voting with their feet.”
The company continues to work hard to solve the serious shortage of workers. The JOLTS report shows that job vacancies at the end of August remained high, at 10.4 million. However, this marked a decrease of 659,000 from the end of July.
The data shows that the shortage of workers is worse than realized this summer. The number of job vacancies in July was revised up to 11.1 million, which is a record high since the start of the report in 2000.
The “Golden Age” of Workers
RSM chief economist Joe Brusuelas said this may have witnessed what may eventually be regarded as the beginning of the “golden age of American workers.”
“The American worker now believes that he or she has bargaining power and can get a reasonable wage — and has an impact on the shape of working conditions,” Bruzuelas said.
This bargaining power comes from their willingness to quit a job they don’t like and find a new job. This shift is not just focused on simple economics—it’s about a broader reassessment of quality of life and goals.
“This is what happened after the war or the Great Depression,” Bruzuelas said. “It’s hard to find when you are inside, but we experienced a shock that caused an unexpected change in the population. It will take some time to resolve.”
All of this helps explain why employers (including factories, freight companies, restaurants, construction companies, and schools) have difficulty finding workers.
In the long run, such a workforce transformation will be a positive thing, allowing more people to find satisfaction in their careers and allowing companies to have happier employees. It can allow more workers to earn subsistence wages and contribute to the wider economy, thereby reducing the worrying gap between the rich and the poor.
However, in the short term, the shortage of workers will continue to complicate the reopening of the global economy, leading to price increases, supply chain pressures, product shortages and transportation delays.
“These things will take some time to resolve,” PNC’s Faucher said.