Workers are quitting their jobs at record speeds. That’s good for the economy.

John White has been trying to become a full-time employee at a contractor company for two years, but has been denied five job offers there. White commute to work while his colleagues work from home, as company policy prohibits contractors from working remotely during a pandemic. “I’m physically in the office every day I work here,” recalls 38-year-old White.

When he was asked to raise his salary, the dispatched laborer and the client each blamed the other. The last straw was when he asked his immediate boss to raise his salary. According to White, she suggested that he “leave and come back under another contractor.”

White is gone — for competitors. Four days after the conversation, a Louisville resident lined up a job with a rival company, paid an additional $ 2 an hour, and paid vacation and health insurance. On the final day, he brought a cake with the message “I’m sorry I lost it.”

White is one of the millions of American workers who have quit their jobs in recent months. Even if 9.8 million people can’t get a job, others are retiring at record rates. We are pushing the “retirement rate” to an unprecedented level.

Some workers are leaving for new jobs with better wages or remote-friendly working conditions. Others decided to start their own business rather than collecting salaries. Yet others have resigned without a firm plan and are confident that they will be able to get better deals elsewhere as the economy recovers from the pandemic recession.

John White of E3, a trade event in the video game industry. A 38-year-old help desk contractor quit his job to a competitor after being handed over for salary increases and promotions. “I was really surprised to see other companies seemingly very interested in me after the company I work for seemed to take over me casually,” he said. I did.

Courtesy John White

“Given the still high unemployment rate, people are tremendously quitting,” said Michael Pierce, senior US economist at Capital Economics. “People are so confident in their prospect of finding a new job that they are quitting at an unprecedented rate.”

Nearly four million Americans quit their jobs in April, according to data from the Bureau of Labor Statistics. This is an unprecedented number in the 20 years that the government has tracked this data, pushing up smoking cessation rates 24% higher than before the pandemic. (The layoffs, which peaked at 13 million in March 2020, fell to the more common monthly level of less than 2 million.)

Workers are in rare sweet spots — ready to seek more wages, better telecommuting arrangements, and other perks they feel they need to stay, if they leave There are many options.

“Employers, employees and job seekers all need to sort out what they want in the future. Given the tight labor market, employees and job seekers may have stronger hands now. “Surely the employment lab.

Will work for higher wages

There is one surefire way for employers to maintain their talents. That is to raise wages. Companies from Bank of America to Wal-Mart have announced wage increases, and applicants’ interest has skyrocketed since then.

According to Pierce, if the current turnover rate is maintained, average wages this year will rise by more than 3.5%, the fastest rate in 2013.

This is nothing more obvious than the food service industry, where a typical worker earns only $ 20,000 a year and has a retirement rate twice the national average. After a few months off, bar and restaurant employers have slackened their wages and put in benefits, which are now twice (4%) higher than the private sector average since the beginning of the year.

Even with higher salaries, many service workers turn their backs on the resentment associated with their infamous hospitality work — inconsistent time, abusive customers, and increased risk of COVID-19. Food and agricultural workers are most likely to be infected with the virus among all front-line workers, according to a preprint survey of working-age Californians.

Starbucks shift supervisor Neith Borja found that she had less time to work in downtown Manhattan, but she said the shift was more stressful. The 28-year-old told CBS MoneyWatch that baristas (only two) warned customers to always wear masks and stay away while juggling drink orders. After feeling that the situation did not improve in a conversation with his boss, Borja made a “big decision” to quit his job to maintain his mental health.

“I can’t keep up, … I’m just preparing for the worst — every time I go to work,” she recalled.

Prior to the pandemic, Borja regarded Starbucks as a model employer and took advantage of the company’s 401 (k) retirement plan and college tuition assistance programs. She said the pandemic experience changed that. “It was very eye-opening,” she said. “Now I’m wondering what other companies are doing to help their workers.”

Borja doesn’t know what his next job will be, but he’s confident that it won’t be in the food service industry. “This is an opportunity to start again and start a new job — meet new people.”

Nate Borja with her daughter in Central Park, New York: “A week after putting mental health first, I had a very necessary picnic with my child.” This 28-year-old woman at Starbucks After working for four years, I recently quit my job as a Starbucks shift supervisor.

Nate Borja

From worker bee to boss

Not only are restaurants, retailers and transportation companies struggling to fill the job openings, they are barely able to seize the workers they already have. Daniel Zhao, Chief Economist, Job Site Glassdoor, Predict This will accelerate for months as a worker who stays in a less than ideal job while the pandemic is looking for more environmentally friendly meadows.

This does not necessarily mean a new job.Millions of Americans Start a new business, Push up Business formation rate Last year was the highest price in 15 years.

Census data shows a surge in new businesses


Albirex, a 15-year fashion buyer based in New York, has always wanted to own his own business. A pandemic who saw her infected with COVID-19, sick for a month, working on a computer for up to 13 hours a day, and spending more time with her children away from requesting work. The year plunged, urging her to be taken. She wanted to be her boss and have more personal time, including time to start a family.

She currently runs two businesses. One is the luxury wholesaler Alez Group and the other is the unnamed apparel line. Just six months after starting Ares with his friends Daisy Perez, Michelle says that even with less work time, the income from the business is already the same as the salary of a corporate buyer.

“Money is important, but I can’t even explain how much freedom of happiness means. It’s great that it just takes a few days to leave,” Michelle said on her 36th birthday. I talked to Curacao’s CBS Money Watch, which was celebrating. birthday.

Albi Michelle (left) and Daisy Perez (right) are working on their business, the Alez Group, during a trip to Tulum, Mexico.

Courtesy Albirex

But for newly empowered workers, honeymoon days are probably counted. Economist Heidi Sirholtz warns against over-reading April data. “This is a very old COVID term,” she said. In May, wage growth slowed significantly, with employers adding nearly 600,000 jobs. This is not a sign of a long-standing shortage, Shierholz It pointed out.

The economy is still below pre-pandemic levels by 7.6 million, and despite all resignations in April, the month ended with 500,000 more unemployed job seekers than open positions. How long it will take for the other 7 million people to return is an open question. In the meantime, those who can work are in the driver’s seat and enjoy the ride as much as possible.

Workers are quitting their jobs at record speeds. That’s good for the economy.

Source link Workers are quitting their jobs at record speeds. That’s good for the economy.

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