Interesting Factoid on Employment

by Laura Ehrenberg-Chesler on July 10, 2014

in Economic Indicators,Employment

Ed Yardeni had a fascinating factoid in his research piece yesterday.  I used to think that an elevated “quit rate” for employees was a negative for the job market.  Mr. Yardeni sheds new light on this piece of data about the labor market.

A remarkably large share of workers quit their jobs every month, usually going directly into another job. And I take the quit rate in many ways as a sign of the health of the economy. When workers are scared they won’t be able to get other jobs, they show a reduced willingness to quit their jobs. Now, quit rates now are below normal pre-recession levels, but on the other hand, they have come up over time, and so we have seen improvement. The job opening rate has also come up. The hires rate, however, remains extremely depressed, and I take that as a sign of a weaker labor market. But most of these measures, although they don’t paint the identical extent of improvement, if you ask about my dashboard, the dial on virtually all of those things is moving in a direction of improvement.”

It is also heartening to read that almost all of the data points around the labor market seem to be improving.

 

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