New data from the U.S. Bureau of Labor Statistics (BLS) shows that the number of people quitting their jobs has surged to record highs, with retail and hospitality workers driving the surge. The data suggests that an increasing number of workers are unwilling to risk contracting COVID for the sake of their low-paying jobs.
The number of resignations, or “quits,” surged to 4.3 million in August — the highest number since agencies began collecting such data in December of 2000. New data also reveals that job creation has continued to slow in recent months, sinking to disappointing lows in September, when extra unemployment benefits from the stimulus package ended.
The industry that saw the largest proportion of quits was the hospitality industry, particularly the food service industry. Retail workers also quit at higher rates than workers in other industries. The rise in quits coincided with the surge of COVID cases across the U.S. over the past few months, hitting highs in August and early September.
The possibility that resignations are tied to a rise in COVID cases is further supported by regional data. People in the South and Midwest — regions that were hit with higher rates of COVID infections and deaths over the past few months — quit at higher rates than those in the Northeast, where COVID infections were less widespread.
Economists usually interpret a high number of quits to be a positive sign for the job market, assuming that people leave positions with confidence that they’ll find another job soon. But this may not hold true as COVID continues to rock the already-fragile economy.
This summer, employers and conservative lawmakers predicted that ending unemployment insurance in September would drive people to work, but the opposite proved true. In the 26 states that ended extra unemployment benefits early — most of which were led by conservative governors — employment rates actually slowed to about half the rate of states that kept the benefits until September.
Economic studies have drawn similar conclusions: When people don’t have enough money to get by, as is currently the case for a huge portion of the U.S., they spend more time managing scant resources and less time job searching, economists say. Unemployment can also have long-term effects on people’s personal finances, leading to lower lifetime earnings.
According to a post by the Economic Policy Institute (EPI) last month, lawmakers hoping to increase employment rates should focus on strengthening social programs that could ease these worries for workers. “Policymakers should prioritize efforts to bolster job growth, protect those still unable to find suitable work, and build a more equitable economy than what existed before the pandemic,” EPI wrote, adding that states should invigorate programs like education.
Though it’s unclear exactly why retail and hospitality workers are currently quitting at such high rates, personal and familial concerns may be playing a role. A report earlier this year by One Fair Wage found that restaurant workers were likely to quit over COVID concerns and low wages. The report also found that COVID creates risks for workers who are unlikely to get health insurance from their jobs — and that workers are experiencing increased harassment during the pandemic, which is worsening their job satisfaction.
Employment may also be impacted by family-related responsibilities. In May and June, a Harvard Business Review survey found that during the pandemic, 20 percent of working parents had to reduce their hours or quit their jobs entirely to help with childcare. All the while, childcare facilities have reported being understaffed, and parents have experienced burnout and exhaustion as the pandemic stretches on — now worrying about rising COVID infections in children as schools have reopened.
While conservatives circulate spurious talking points about people not wanting to work, they are fighting tooth and nail against Democratic proposals that could save or create jobs. Their recent opposition to raising the debt ceiling could cost 6 million jobs if the U.S. defaults on its debts. And the GOP and conservative Democrats have been rallying against the relatively inexpensive reconciliation bill, which could create over 4 million jobs annually.
We’re not backing down in the face of Trump’s threats.
As Donald Trump is inaugurated a second time, independent media organizations are faced with urgent mandates: Tell the truth more loudly than ever before. Do that work even as our standard modes of distribution (such as social media platforms) are being manipulated and curtailed by forces of fascist repression and ruthless capitalism. Do that work even as journalism and journalists face targeted attacks, including from the government itself. And do that work in community, never forgetting that we’re not shouting into a faceless void – we’re reaching out to real people amid a life-threatening political climate.
Our task is formidable, and it requires us to ground ourselves in our principles, remind ourselves of our utility, dig in and commit.
As a dizzying number of corporate news organizations – either through need or greed – rush to implement new ways to further monetize their content, and others acquiesce to Trump’s wishes, now is a time for movement media-makers to double down on community-first models.
At Truthout, we are reaffirming our commitments on this front: We won’t run ads or have a paywall because we believe that everyone should have access to information, and that access should exist without barriers and free of distractions from craven corporate interests. We recognize the implications for democracy when information-seekers click a link only to find the article trapped behind a paywall or buried on a page with dozens of invasive ads. The laws of capitalism dictate an unending increase in monetization, and much of the media simply follows those laws. Truthout and many of our peers are dedicating ourselves to following other paths – a commitment which feels vital in a moment when corporations are evermore overtly embedded in government.
Over 80 percent of Truthout‘s funding comes from small individual donations from our community of readers, and the remaining 20 percent comes from a handful of social justice-oriented foundations. Over a third of our total budget is supported by recurring monthly donors, many of whom give because they want to help us keep Truthout barrier-free for everyone.
You can help by giving today. Whether you can make a small monthly donation or a larger gift, Truthout only works with your support.