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The “Great Resignation”, as some in the sphere of economics have dubbed it, refers to the record rates at which employees are quitting their jobs, including here in Florida. Per the U.S. Bureau of Labor Statistics (BLS), their newly published data on the quantity of individuals who quit their jobs in November 2021 reveal a record high 4.5 million people. That figure sits comfortably as the highest number of resignations recorded since record keeping of this statistic began and brings the total number of resignations since summer 2021 to 21.3 million people.
Those industries leading the pack in number of November 2021 job resignations include Leisure and Hospitality (1,002,000); Trade, Transportation, and Utilities (996,000); Professional and Business Services (798,000); and Education and Health Services (660,000). Of course, we have not seen the total effects of the COVID-19 Omicron variant on these and other industries just yet, as data on job quitting rates tend to lag by two months due to federal reporting schedules. February 2022 should update our understanding of this phenomenon going forward.
Job quitting rates are also having a marked impact on employment vacancies in Florida. Education and Health Services; Leisure and Hospitality; and Trade, Transportation, and Utilities posted the highest number of current vacancies around the state. According to the most recent data, approximately 260,000 Floridians quit their jobs in October 2021, predominantly within the Leisure and Hospitality, and Retail Trade sectors. However, this number is down from the previous spike of 277,000 resignations witnessed in September 2021. An updated jobs report in Florida should be expected later this month.
So, what can be gleamed from these national resignation rates? Looking at pre-pandemic job quitting data, escalating vacancies normally suggest that workers are optimistic about upgrading their positions of employment in favor of better opportunities and while this may still be the case for some individuals, the majority experiencing increasing job vacancies are primarily those customer-facing industries (e.g., Accommodation and Food Services, Health Care, and Social Assistance) for reasons including low wages, physical risk and overall economic uncertainty.
Hopeful job development figures and reduced unemployment in Florida and other regions of the country are visible as we come out of artificial economic depressions caused by government lockdowns. Nevertheless, the “Great Resignation” suggests we may still have ways to go before we return to full economic strength. The upcoming state and national jobs reports later this month should paint a more accurate picture of where we stand amidst the wave of the Omicron variant. Keeping a keen eye on the labor market will be crucial to understanding where our recovering economy may be headed in the foreseeable future.
LMA Newsletter of 1-18-22
