November 11, 2016
The Labor Department’s report issued this week notes that the number of Americans quitting their job hit a 15-year high in September. This signals that workers have gained leverage in the labor market, and should point towards rapid wage growth.
From August to September, the number rose from 3 million to 3.1 million workers quitting their job, the highest since May 2001. The Labor Department reported that annual wage gains climbed to 2.8% in October, marking a 7-year high. In September, there were 1.4 unemployed workers per job opening. A ratio of 2:1 represents a “healthy job market.”
While job openings increased, hiring fell, which could have resulted from the presidential election.
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