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Why more people quitting jobs is good

Two women leave an office carrying their belongings

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Here's one of those economic reports that make you wanna stop reading economic reports. Here we are deep in what's been called a jobless recovery, and the Labor Department says that in the past three months, more people have quit their jobs than been laid off. Nobody ever said labor economics was an easy thing to figure out, but that one does seem to fly in the face of commonsense.


By Stacey Vanek-Smith

Eight million people lost their jobs in 2008 and 2009. And almost nobody was quitting. Until now.

"It means that workers feel confident in the economy," said Gary Chaison, who studies labor issues at Clark University. "I think that people are less frightened, I think that people now feel as if the jobs they wanted are starting to open up."

Twenty-seven-year-old Katie Charland just quit her job. She graduated from a master's program last year, hoping to work in the nonprofit sector.

"It was pretty rough," Charland said. "I remember that whole summer, I looked for jobs endlessly, in every field I could think of and I got pretty creative."

Creative enough that she took a job in publishing. She kept looking though, and a few weeks ago, she landed the job she wanted.

"I think I'm on the front lines of the economy getting better and people starting to take a positive outlook," she said.

Harley Shaiken, a labor economist, said "in a labor market that has had more than its share of dark clouds, it's a little bit of sunshine."

Shaiken says more people quitting does show increased confidence in the economy, but whether there's reason to be confident is unclear.

"There is some cause for optimism when one looks at the overall economy, but the labor market remains pretty grim," he said.

Shaiken points out that for every open job, there are five people looking. And job growth has consistently come in below expectations.

Clark University's Gary Chaison points out quitting could also mean jobs have gotten harder, as employers trim staff and load more work onto the survivors.

About the author

Stacey Vanek Smith is a senior reporter for Marketplace, where she covers banking, consumer finance, housing and advertising.
Jonathon Storjohann's picture
Jonathon Storjohann - Oct 19, 2011

Here is another way of looking at quitting a job. First, the job that I just quit which was a temp to hire, forklift operator's job. The company, which I will not disclose the name, seems to think that "we" employees and temps are safe in the building without seat belts, without safe guard rails in the upper part of the building, and we are not to wear safety toe shoes and glasses. Which in honesty, OSHA should have a record of all of that. Second, the pay was good to start. However, the company had declined to pay the people time and half for over-time. I think that is a crime. Now, that I have quit this position, I'm in the midst of another job that will interview me on Friday. Perhaps, it will better my abilities than the previous job. Believe me, the other company I quit, the CEO could afford to pay all employees the time and a half overtime. Especially, when I found out that they no longer paid time and a half to their regular employees. It's a serious crime in this country. Thank you.

michael sjostedt's picture
michael sjostedt - Jul 3, 2010

I’ve recently left a difficult job without another one lived up in the wings. It’s the second time I’ve done it. I can already feel energized by the possibilities. Has anyone else left a job without another lined up? How did you navigate the process and manage the uncertain plunge? I’d like to know. That’s why I started an interview blog talking with others who made it work. It’s called Quitter to Winner: http://quittertowinner.blogspot.com. If anyone wants to participate in an interview drop me a note at msjost@gmail.com. I also sent up a Facebook fan page for people to ask questions or post links to relevant articles. Quitter to Winner Blog on FB. Thanks in advance for those who want to participate in the discussion!

_ -'s picture
_ - - Jun 14, 2010

Americans are working longer hours and getting less pay. The hispanics and illegal hispanics work the same hours and get more pay than the Americans. illegal's get welfare,food stamps, unemployment insurance, social security. If the american want welfare,food stamps, unemployment insurance, social security they have to fight for it. You will notice hispanics and illegal hispanics that have alot of jobs all over the country in the supervisor to executive who hire hispanics only and one white and one black for every 15 hispanics. Hispanics who work in government jobs help hispanics and illegal hispanics with government money and help, while the rest is to fight for there american rights to get help. There are 63.7% hispanics in the united states. Out of that 63.7% hispanics in the united states 16.3% are american hispanics. 47.4% illegal hispanics are in the united states that have jobs here in the united states.

Connie Glover's picture
Connie Glover - Jun 11, 2010

I'm a big advocate of replacing "jobs" with "work." (http://cmariemarketing.wordpress.com/2009/11/06/jobs-vs-work/)In fact, between my husband and I we've lost 3 jobs in 3 years. Recently, when it was his turn, I advised him that the tables have turned and it is no longer as stable to have a job as to make your own work, and find someone that wants to pay you for it. In fact, in the middle of the worst of the economy, when he lost his job, I took that opportunity to quit my low-paying job. We're both doing good work that we love, for people who appreciate it, and so far we haven't had to compromise our lifestyle!

Fargo Trumley's picture
Fargo Trumley - Jun 11, 2010

Perhaps it has something to do with the disturbing recent trend among employers: Unemployed Need Not Apply.

http://www.huffingtonpost.com/2010/06/04/disturbing-job-ads-the-un_n_600...

If more and more employers refuse to hire the unemployed, it will result in more job hopping as the remaining employed leave their current job to chase better offers.

Joe Zen's picture
Joe Zen - Jun 11, 2010

Good points Richard. At my current job all the people that have quit have had to either change career fields or go back to their old job. I'm still hoping that my employers start working on building their employees instead of abusing them so that I can someday get a job offer for a better paying job and then turn it down. A lot of companies should be scared about losing their talented people. A company that has valued loyalty over training and merits will soon find themselves left with an obsolete work force for no other reason than that no one wants to hire them.

Richard Johnston's picture
Richard Johnston - Jun 11, 2010

1. Maybe these people were so stressed out in the job where they were doing 2 people's work that they escaped to a less-demanding one. Similarly,
2. It would be interesting to know what proportion of those changing jobs moved to one with higher pay, better benefits or greater potential. And last, but not least,
3. What is the age of the people who were able to move during the Great Recession. Odds on they were not over 40.

Charles Mason's picture
Charles Mason - Jun 11, 2010

I agree with Mr. Dare. I know Marketplace just reports the news for us to sift out but, I think Mr. Dare makes an excelllent point. No one just quites even in the best of times because the number one rule of them when getting a job is no employer wants someone who's not working even in a jobless recovery. I do wish Marketplace would do an article on how many jobs the DOL excepts to come back. By my studies and historical, with the impact of technology out of a 10% jobless rate only 4% of those jobs will ever return. New technologies, innovative methods and that young guy/girl in the back coner office who's been ignored because of lack of seniority usually thrive in times like these, as companies find ways to produce the same or more product with half the staff or maybe even less.

gb gb's picture
gb gb - Jun 10, 2010

Intelligence level of articles on Market place is going downhill fast.

Could you at least bring back Scott and his scratch pad. It used to be lively with more participation from listeners/reader.

Please bring back Scratch ptad.

Gary Dare's picture
Gary Dare - Jun 10, 2010

Maybe a wee bit of skepticism here ... that folks may be getting and taking voluntary severance packages (VSP) as a better alternative to layoff and taking UI (and employers not taking a hit on premiums).