Job Market Pause: Why Fewer People Are Quitting

The job market, often called the “Great Stay, ” is showing signs of slowing down. In November, the number of people quitting their jobs fell to below 3. 1 million, the lowest since the pandemic's peak. The latest Job Openings and Labor Turnover Survey also shows hiring has hit a decade low. This suggests the labor market is cooling off. Workers might be staying put because they don't feel confident about finding better jobs elsewhere. Economist Elise Gould explains that people tend to quit when they believe they can find something better. This is how they drive wage growth. But even though job growth has slowed, the labor market remains solid. The unemployment rate is still low, and wages are growing steadily.

In 2023, the US added an average of 180, 363 jobs per month, which is similar to the pace from 2010 to 2019. The final jobs report for 2023 is due on Friday, with expectations of 156, 500 jobs added in December and an unemployment rate of 4. 2%. The JOLTS report from November showed job openings increased to 8. 1 million, the highest since May. Economists were expecting a slight decrease, but the number rose instead. Layoffs stayed steady. Experts warn that the coming months could see changes due to the incoming administration's policies on trade, taxes, and immigration. For now, it seems both employers and employees are adopting a wait-and-see attitude.

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