Voluntary Job-Quitting Hits Highest Level in Nine Years

The number of Americans who voluntarily quit their jobs climbed to a postrecession high in December, suggesting workers are confident about their employment prospects despite financial-market turmoil and a slowdown overseas.

The Labor Department’s monthly Job Openings and Labor Turnover Survey, or Jolts, showed the number of voluntary quits rose to nearly 3.1 million, the highest level since December 2006. Hires, meanwhile, increased to nearly 5.4 million workers, also a postrecession best.

Taken together, the figures signal a strong finish to the year for the U.S. labor market. Americans are more likely to voluntarily leave one job if they think they can do better elsewhere, and companies appeared ready to absorb them.

The more closely watched Labor Department jobs report last week showed the U.S. economy added 280,000 jobs in November, 262,000 in December and 151,000 in January. The unemployment rate hit an eight-year low and wage growth accelerated last month.

While the monthly employment summary shows net job gains or losses, Jolts offer additional detail: the monthly pace of hiring, separations and job openings. The latest report on the economy’s churn shows a labor market that has in some respects returned to prerecession levels.

There were 5.6 million job openings in December, the second-highest level on record (July 2015 was higher; records date back to December 2000 and aren’t adjusted for population growth). And layoffs dropped to 1.6 million, the lowest level in more than a year.

It’s less clear if December will remain a peak or if that momentum can continue into 2016. As already noted, the pace of net job creation slowed in January and many big companies are pulling back on spending and, in some cases, announcing layoffs amid weak demand and broader uncertainties about the U.S. economy.

But the Labor Department measures show a market that is getting tighter, spurring higher pay and pushing employers to hold onto existing employees.

“Despite the turmoil in financial markets and increasing talk of recession, the labor market continues to improve and is moving toward full employment,” said Gus Faucher, senior economist with PNC Financial Services. “Job openings and hiring are up, workers are leaving their jobs to find new ones, and layoffs are very low.”

Source: The Wall Street Journal