Increased American job quitting indicative of improving economy
Nov 13, 2014, 6:24 PM
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September was a good month for the economy. Americans were back to their old job-quitting ways.
As Reuters reports, the Labor Department revealed that Americans quit their jobs faster in September than in any month over the last six years. The country’s jobless rate, meanwhile, is still near a 14-year low.
…The two readings suggested the U.S. labor market was moving toward full health.
Two percent of U.S. job-holders, or about 2.8 million workers, left their jobs under their own volition in September…
Reuters’ report goes on to point out that the rate of job quitting severely fell during the 2007-09 recession. Job market analysts have suggested that the lack of quitting during that time frame caused wage growth to plateau, as employers didn’t have to do much to retain employees due to the limited turnover.
And while quitting rose, as correlation would suggest, so did the rate of hiring in September.
“It’s definitely good for wages,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank. “Also, the chair of the Federal Reserve is looking at it, and if she’s looking at it, we have to as well.”
