London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Americans are quitting jobs at record rates, while job openings tick down

Americans are quitting jobs at record rates, while job openings tick down

Americans quit their jobs at a record-high pace in August, with almost 3% handing in their resignations, the government reported on Tuesday. The number of quits increased in August to 4.3 million, which is 242,000 more than in July. The quits rate increased to a new high of 2.9%.

By comparison, employers laid off 1.3 million workers in August.

The Labor Department said the jump in quits is the highest on records dating back to December 2000, and up from 4 million in July. Hiring also slowed in August, the report showed, and the number of open jobs fell to 10.4 million, from a record high of 11.1 million the previous month.

The data strongly suggest that the Delta variant wreaked havoc on the job market in August: As COVID-19 cases surged, quits jumped in restaurants and hotels and rose in other public-facing jobs, such as retail and education.

"Job openings fell in August for the first time this year," Nick Bunker, director of research at the Indeed Hiring Lab, said in a note. "The decline here suggests that the rising case counts in August tempered employer demand for new hires. At the same time, the quits rate for leisure and hospitality jumped by over 20% in just one month," he said.

Quits also rose the most in the South and Midwest, the government said, the two regions with the worst COVID outbreaks in August.

Last month, about 9 million people lost all their unemployment benefits with the expiration of two federal programs that covered gig workers and people who had been jobless for more than six months. An additional 2 million people have lost a $300-a-week federal supplement to state unemployment benefits.

When workers quit, it is typically seen as a good sign for the job market, because people typically leave jobs when they already have another position or are confident they can find a new one. The large increase in August likely reflects the fact that, with employers desperate for workers and raising wages, many workers feel they can get better pay elsewhere.

But the fact that the increase in quits was heavily concentrated in sectors that involve close contact with the public is a sign that fear of COVID also played a large role. Many people may have quit even without other jobs to take.

"The August JOLTS report shows employers and workers were anxious about the rising Delta COVID-19 wave two months ago," Robert Frick, corporate economist at the Navy Federal Credit Union said in a note. "Workers quit, especially in retail, at a record rate to avoid exposure to possible infection. Job openings dropped, especially in leisure and hospitality, as travel dropped markedly due to Delta," Frick said.

Hiring in September slowed for a second straight month, the government said Friday, with only 194,000 jobs added. Economists had expected about 490,000 jobs to be created.


"Temporary speed bump"?

The nation's unemployment rate fell to 4.8%, from 5.2%, due to a combination of unemployed workers finding jobs and people leaving the labor force, meaning they are no longer counted as unemployed since they are not actively seeking new work. The labor-participation rate, a measure of people working or searching for work, ticked down to 61.6% in September, from 61.7% in August.

Tuesday's report, known as the Job Openings and Labor Turnover survey, or JOLTS, provides a more detailed picture of the job market. The hiring reported on Friday is a net total, after job gains and quits, retirements and layoffs are taken into account. Tuesday's report includes the raw figures, and showed that total hiring in August fell sharply, to 6.3 million from 6.8 million in July.

Looking ahead, economists say the August slowdown does not necessarily indicate a permanent change for the worse. What is clear, however, is that the pandemic continues to be a defining factor in the job market's recovery.

"The question is whether this is a temporary speed bump due to a surge in COVID cases or if demand will continue to slacken in the months ahead," said Bunker.

"The Delta wave didn't reach its peak until mid-September, so the September JOLTS report may also carry bad news. But given the decline in cases and deaths underway, this month may see a strong turnaround in the numbers," Frick said.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×