Americans quit jobs in record numbers

A government report shows that Americans quit their jobs in August at a record rate with 3% handing in their resignations. The number of quits reported in August rose to 4.3 million, which is 242,000 more than the number reported in July. The rate of resignations rose to a new high of 2.9%. In comparison to this number, American employers laid off 1.3 million workers in August. The Labor Department said that this rise in the number of quits is the highest in records since December 2000. According to the report, hiring also slowed down in August and the number of job openings fell to 10.4 million from a record high of 11.1 million the previous month. 

The data suggests that the Delta variant has caused severe havoc to the job market. As covid 19 cases peaked, restaurants and hotels also took a high, increasing the number of resignations in the sector. Similar trends were also seen in the retail and education sectors as well. The government also said that the quits increased in the South and the Midwest, the two regions that were heavily affected by covid 19. The increase in the number of quits is often a good sign for the job market as workers usually quit in large numbers when they are confident that they can find work elsewhere. This large increase in the month of August reflects that with desperate employers and rising wages, many workers feel that they can find better pay elsewhere. 

Source: CBS News