Americans Are Resigning From Their Jobs At Record Rates

It’s been recorded that around 4.4 million American workers have handed in their resignation during the month of September alone. Certain states are experiencing major spikes in job resignations, so much so that it’s being referred to as “The Great Resignation.” 

The increase in resignation is due to a multitude of pandemic and economic factors. Many parents are dealing with the dual demands of childcare and working full time, so many of them are opting to resign and apply for unemployment so they have enough time in the day to take care of themselves and their families. 

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Some employees are able to find better paying jobs as well, as many companies are reacting to this spike in unemployment by offering raised wages and attractive benefit packages. 

Beyond the pandemic, some states are experiencing a shortage in labor due to aging employees, low workforce participation rates, and other long-term issues that have existed long before the Covid-19 pandemic. 

“A lot of states with elevated quits are states with higher-than-average COVID cases, but a lot of it is due to labor market tightness. Idaho has an extremely aging population — a lot of the tightness in Idaho is that it’s an older workforce. They also have one of the lowest unemployment rates in the country, so that means it’s a very good environment if you are a worker” looking for a new job,”  said Liz Wilke, chief economist at Gusto, which provides payroll and other services to small businesses. 

New Hampshire and Indiana are seeing an increase in resignation for similar reasons. Employees are leveraging their benefits and salaries to find more lucrative jobs. Typical hourly earnings increased by 4.9% in October due to these leveraging tactics as well. 

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The top 10 states with the highest resignation rates for the month of September are Hawaii (7.1%), Montana (4.8%), Nevada (4.5%), Alaska (4.3%), Colorado (4.3%), Indiana (4.3%), Idaho (4.1%), Oregon (3.9%), Louisiana (3.8%), and New Hampshire (3.8%).

According to Oxford Economics, for every job opening created in September there were only .74 unemployed people available to take the position, marking the lowest ratio on record. Economists are still confident, however, that America’s workforce will be able to rebuild itself in 2022. 

“One reason for optimism about the labor force re-entry of prime-age workers is that nearly all workers who left the labor force during the pandemic intend to re-enter in the next 12 months, suggesting that most prime-age exiters still view their exits as temporary,” Goldman Sachs analysts noted.

“Workers have ongoing concerns about workplace safety given the ongoing pandemic. It may take some time for some people to feel comfortable returning to work,” they also noted.