London Daily

Focus on the big picture.
Saturday, Oct 31, 2026

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
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
British Prime Minister Keir Starmer and Chancellor Rachel Reeves Outline Strategic Infrastructure Plans to Boost Regional Growth and Private Investment
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
Chancellor John Healey Delivers First Autumn Budget in Parliament Highlighting Temporary Bank Surcharge and Cost-of-Living Support
Met Office Issues Extended Forecast Highlighting Stable High Pressure Weather Patterns Across the United Kingdom
Scottish Finance Secretary Shona Robison Outlines Changes to Tax Thresholds and Residential Property Levies in Edinburgh
Financial Markets and Government Bond Yields Remain Stable Following Muted Reaction to Autumn Budget Measures
Defence Committee Chair Tan Dhesi Criticizes Budget for Delaying Critical Defence Spending Decisions to Next Year
International Monetary Fund Forecasts United Kingdom Economic Growth at One Point Three Percent for Year
Office for Budget Responsibility Assesses Fiscal Headroom Reduced to Fifteen Billion Pounds Following Global Energy Shocks
Chancellor John Healey Delivers First Autumn Budget Introducing Household Energy Support and Bank Tax Hikes
Aberdeen City Council Co-Leader Faces Binding Vote Challenge as Local Councillors Launch High Court Legal Battle
Housebuilding Across Scotland Falls to Eleven-Year Low Despite Government Declarations of a Housing Emergency
Former Prime Minister Gordon Brown Organizes National Innovation Summit in Manchester to Boost Regional Competitiveness
UK Government Faces Mounting Criticism Over Lack of Environmental Consultation During Artificial Intelligence Datacentre Expansion Talks
×