4.4 million Americans quit their jobs in September, breaking a record set in August, according to new government data.
According to a report by the U.S. Bureau of Labor Statistics released on Friday, the number of job openings remained nearly the same throughout the month of September, but the rate of people quitting their job rose to a record high.
“The number of job openings was little changed at 10.4 million on the last business day of September,” the report explained. “Hires and total separations were little changed at 6.5 million and 6.2 million, respectively. Within separations, the quits level and rate increased to a series high of 4.4 million and 3.0 percent, respectively. The layoffs and discharges rate was unchanged at 0.9 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, by four geographic regions, and by establishment size class.”
The report added, “The number of quits increased in September to a series high of 4.4 million (+164,000). The quits rate also increased to a series high 3.0 percent. Quits increased in several industries with the largest increases in arts, entertainment, and recreation (+56,000); other services (+47,000); and state and local government education (+30,000). Quits decreased in wholesale trade (-30,000). The number of quits increased in the West region.”
As Republicans on the Joint Economic Committee pointed out last month, a driving force behind the labor force problems is workers choosing to receive government benefits instead.
“Only 12 percent of inactive, prime-age, able-bodied men said they wanted a job or were open to work. Among men who are inactive for reasons other than disability, retirement, education, or homemaking, 41 percent personally receive government assistance,” the group explained. “One key piece of evidence that suggests labor force trends are driven largely by workers, not employers, is that the decline in prime-age labor force participation has been mostly voluntary, as told by the men themselves. Three out of four disconnected men say they do not want a job, and only 12 percent of inactive, prime-age, able-bodied men said they wanted a job or were open to it in 2014. If more men are genuinely choosing to stay home with the kids, go to school, or retire early, policymakers should not be concerned…”
“A significant body of empirical evidence suggests that government transfers — especially those without work requirements — tend to lower employment,” the group added. “For example, labor force participation and earnings fall after receiving housing assistance, losing Medicaid coverage increases employment and gaining the coverage can reduce it, and the introduction of the food stamp program in the 1960s and 1970s decreased employment significantly. A series of temporary income support trials also find that disincentives to work generally increase with the size and duration of the benefit, although the effects are often smaller than predicted.”
