Compared to the past five years, a record number of employees are quitting their jobs a new survey says.
Prior to and during the 2008 financial crisis, firings and layoffs were the most common reasons why people left their jobs. With this new trend however, more employees are leaving their bosses hanging. According to the Department of Labor and Statistics this could be a sign that the economy is on the upswing. However they wonder whether it’s a natural turnover of employees or because more good jobs are available.
According to the Bureau’s monthly Labor Turnover survey, there were 4,376,000 separations in August. Of those more than half were individuals who on their own left their jobs. That was up from the numbers posted last year in August.
Challenger, Gray & Christmas, Inc., a global outplacement and executive coaching consultancy firm conducted their own survey and their conclusion is more people quitting is a sign that the economy is getting better.
“Quit levels offer important clues about the strength of the job market,” said John A. Challenger, chief executive officer of global outplacement and executive coaching consultancy Challenger, Gray & Christmas, Inc. “While the government survey does not break out the reasons for these voluntary departures, the rising number of individuals willing to walk away from a job suggests that more are being lured away by other employers or that they are confident enough in their job prospects that they can leave before securing a new position.”
This begs the question as to whether Americans are just fed up with their current job or whether the economy is really on the up and up.
“While, no one probably ever feels 100-percent secure in his or her job, these trends certainly indicate that Americans can feel more confident about their job security now versus two years ago,” said Challenger.
According to the bureau of Labor Statistics, there were 3.883 million job openings in August. This is a significant jump of 70 percent from August 2009 when the economic downturn was at its peak. A better jobs market and more opportunities may be giving workers the confidence they need to leave.
Just remember that before you quit, you need to be sure to have a plan or budget to handle a gap in your employment. If you need help creating a budget, Consolidated Credit has an entire section on budgeting.