US Retirees Slightly Decrease... Long Way to Go for Easing Employment Stagnation

200,000 Voluntary Resignations Decrease in October... Still at Record High
Decline in Logistics Sector Resignations is Hopeful
Corporate Labor Cost Burden Continues to Rise
Job Change Wave May Grow Again in New Year

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The number of American workers quitting their jobs has turned to a decline. As the "Great Resignation," which emerged as a black hole in the U.S. labor market, eases, attention is focused on whether the labor market tightness will be resolved, but experts judged that it will be difficult for the time being.

According to the October Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Department of Labor on the 7th (local time), the number of workers who voluntarily resigned was 4.2 million, down from 4.4 million the previous month. The quit rate relative to job openings also decreased from 3.0% to 2.8%.

Although the number of resignations decreased, it remains the third highest level on record. This suggests that while many are still joining the ranks of those quitting, the situation is somewhat easing.

The most notable decrease was 57,000 fewer resignations in the transportation warehouse and utilities sectors. Some analysts have raised hopes that the labor issues, which were cited as a main cause of supply chain bottlenecks, are being alleviated.

Although the quit rate has fallen, the number of job openings remains near an all-time high, indicating that easing the employment shortage will not be easy.

The number of job openings in October was 11.03 million, exceeding the market expectation of 10.5 million. Compared to September, job openings increased by 700,000. This level is close to the record high of 11.1 million set in July.

Business Insider reported that employment expanded in October as the spread of the Delta variant slowed, but there is still a long way to go before the hiring shortage is resolved.

The Wall Street Journal also cited job search firm ZipRecruiter, reminding that although job openings reached 11 million, there are still 6.9 million unemployed people.

Julia Pollak, Chief Economist at ZipRecruiter, explained, "The labor market tightness is still unprecedented."

The Department of Labor reported that employment increased by 200,000 in November, with a labor force participation rate of 61.8%. This is below the 63.4% recorded in January last year before COVID-19.

Labor market tightness is leading to increased labor costs for companies. Lindsey Piezza, Chief Economist at Stifel Financial, said, "Companies are doing their best to secure workers, but workers are still reluctant to seek employment, causing labor costs to continue rising."

There remains a possibility that resignations will increase again. Wage increases stimulate a chain reaction of job changes, and the change of the year can also be a factor that increases resignations.

Economist Pollak predicted that many workers’ New Year’s resolutions involve changing jobs, and the wave of resignations will not easily disappear.