The Great Resignation: Record amount of people quitting their jobs

A record amount of workers in the United States quit their jobs in the past nine months, many switching to a different vocation, a trend that highlights how employees are increasingly realizing the power of their labor.

In December 2021, 4.3 million US workers left their jobs as the number of people who were fired decreased.

Alex Brill, a senior fellow at the American Enterprise Institute, spoke with i24NEWS about the surging quit rate, and what it means for the US economy. 

“This is evidence of… the power that the workers are enjoying in an economy with a low employment rate, rising wages, and the ability… to go find another job,” Brill said.

“The dynamic nature of the US economy is ultimately one of its strengths - the ability to match workers and employers.”

A few major sectors are responsible for most of the high rate of quitting, especially in November 2021 when resignations reached an all-time high at 4.5 million. 

Quit rates in November 2021, according to the Bureau of Labor Statistics.

1. Leisure and hospitality - 6.4 percent

2. Professional and business services - 3.7 percent

3. Trade, transportation, and utilities - 3.6 percent 

Other documented industries were listed under the average rate of three percent. 

This trend is not so much a bad thing, Brill explained to i24NEWS.

“We are seeing wages and salaries increase. A worker can increase that wage increase by switching.”

“It does cause some disruption on the part of the employer. There are some short-term, dislocation-related costs associated with all the switching,” he said.

Brill noted that he does not expect the quit rate to sustain, though.

“We are in a reallocation. At some point, people will re-sort themselves and we’ll see that number start to decline.”