4.3 million US workers quit in May

According to the US Bureau of Labor Statistics, the Job Openings and Labor Turnover Summary (JOLTS) report suggests that the ‘Great Resignation’ shows little sign of reversing course in the US. 

The number of resignations in May 2022 was the same as February; 4.3 million quits at a rate of 2.8%. This is slightly below the record number of quits (4.5 million in November 2021 and March 2022) for the US since the year 2000. 

In fact, May 2022 showed an increase in resignations in the arts, entertainment, and recreation by 19,000. 

On a brighter note, resignations did decrease in real estate, rental and leasing, as well as for state and local government roles. 

It’s not all doom and gloom

As the economy braces itself for a recession, American workers and companies can find some solace in the JOLTS figures.

The number of job openings decreased to 11.3 million (6.9%) in May, as more Americans were hired than resigned, closing the labor shortages. The largest decreases, according to the JOLTS report, were in professional and business services, as well as manufacturing. 

According to Business Insider, the US created 390,000 new jobs in May, a rate exceeding experts’ forecasts. However, this does not indicate that the labor market is overheating.

Economic Policy Institute senior economist Elise Gould tweeted: 

Hiring continues to outpace quits in every major sector as workers seek and find new jobs. Churn remains highest in low-wage accommodation and food services. Faster wage growth in that sector suggests workers are finding better jobs when they quit. pic.twitter.com/7rtpDlefR5

— Elise Gould (@eliselgould) July 6, 2022

CNBC Analyst Jeff Cox stated: “The employment index fell to 47.4, a 2.8-point drop and indicative of contraction. The headline number was helped by an 8.5-point jump in backlogs, which rose to 60.5.” 

This potential contraction could help cool off the current labor market in which companies are struggling to attract and retain talent. 

The dichotomy between an approaching recession and a notably low unemployment rate of 3.6% places the US economy in a unique position.

Though the ‘Great Resignation’ does not seem to be slowing down, the most recent JOLTS data contains some positive elements, in particular that companies are still hiring, which bodes well as the country faces an upcoming recession.