Sign of jobs thaw: Quitters outnumber layoffs

[Godhumor]

Source: MSNBC via Associated Press

More people quit their jobs in the past three months than were laid off — a sharp reversal after 15 straight months in which layoffs exceeded voluntary departures. The trend suggests the job market is finally thawing.

...

"There is a century's worth of evidence that bears out this view that quits rise and layoffs fall as the job market improves," said Steven Davis, an economist at the University of Chicago.

...

Yet the long-term trend points to an improving job market. The economy has created a net 982,000 jobs this year after a recession that wiped out more than 8 million of them.

The government said Tuesday that the number of people quitting rose in April to nearly 2 million. That was the most in more than a year and an increase of nearly 12 percent since January. That compares with 1.75 million people who were laid off in April, the fewest since January 2007, before the recession began.



Read more: http://www.msnbc.msn.com/id/37590360/ns/business-stocks_and_economy/

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Interesting metric to look at, in my opinion.

[Art_from_Ark]

1. Or, maybe the jobs are so bad that people are quitting

even if they don't have a prospect for a new job.

I had a job like that during the Reagan Recession-- people were quitting left and right even though the unemployment rate was 10%, because the management and working conditions were so screwed up.

[Crowman1979]

2. +1

Especially if the job has no health insurance coverage.

[superconnected]

7. I work with plenty of people who can't afford the health insurance at the corporate job I'm at.

That's common now in corporate America. Even when they offer it, the rates are so high it's unaffordable - especially if someone has a family. I have health insurance but I'm a single person. I've had plenty of coworkers that couldn't afford it because they had kids though.

[proudohioan]

3. I agree with you completely!

I did exactly that myself. Once I 'doubled up with friends/family', I was in a position not to have to take the shit of a 'McJob' anymore.... and I wasn't the only one, either.

[superconnected]

4. True. I've witnessed work conditions get worse and worse.

I work for a boss who really is a pathetic human being in the way he talks to people. He's just mean. The work level only increased as he laid everyone off and the temporary H1 and L1 visas he replaced them with were never fully trained before they had to go back to their countries because their visas expired. We went through a few rounds of them - trying to retrain the new visa holders who also never got up to par before they had to go back.

The thing is that all of my friends are also working for companies and bosses they would never tolerate, if there were other jobs out there. They've taken pay decreases without changing jobs as well as quadrupled their work loads

All will change when the job market turns around. The quitters in the article were likely in the same place I am now and found no employment preferable to abusive employment. I'm there but am trying to wait until September to quit.

[Art_from_Ark]

22. Recessions are employers' markets

My employer during the Reagan Recession was constantly drumming it into our heads that we should be grateful for the chance to work gawdawful hours in a too-hot-in-summer, too-cold-in-winter environment for $5/hour, because we were in a recession and there weren't any jobs out there. And the managers almost never passed up a chance to show their disdain for us. Most workers didn't stay there more than a year, even in the middle of a recession.

[notesdev]

5. Or...

it could be companies encouraging/forcing people to quit so they don't have to pay unemployment bennies.

The real test is: are new hires brought on to replace the quitters?

Dollars to donuts the answer is no.

[superconnected]

10. +1

[proudohioan]

12. I have heard that the practice is referred to as 'back door layoff's'...

and my guess would be that a fair amount of that is going on, too.

I think that most of the employers who actually do replace the quitters are practicing the fine art of 'churning': employers (commonly low-wage employers) use the WOTC (aka welfare-to-work tax credit) when hiring. Once the credit has been fully 'utilized', the employee is then either fired (with cause) or given a 'back door layoff'. And then hires a new 'eligible' employee, while gaining a new tax credit. Of course, the practice of 'churning' would only make sense in a low-wage, service sector type job.

Here's a link for WOTC: www.doleta.gov/business/incentives/opptax/

It's an interesting read.

[guitar man]

6. I remember when I was in my 20s

Must have been around '85 or so, I quit a job. My Dad asked me why I quit and my answer was "When it comes to the point where I can work my ass of and be flat broke or sit on my ass and get the same result, I think I'll take the latter"

[superconnected]

9. Good post!

[wackywaggin]

8. What kind of screwed up logic is this!!

People are quitting because they cannot tolerate the injustice and abuse in the workplace anymore. They see themselves better off living off of government subsidies than working because of the generous welfare system we exist in and I don't blame them. I go to work 40+ hours a week and can barely afford groceries and necessities. I go to the grocery store and buy Macaroni and cheese to eat while I see people using government assistance buying steaks, pork ribs, and high end groceries galore. Yes, it does make me mad and make me want to quit my job, too!!! These experts are full of Sh*t and probably have never been off of the government payroll their whole lives.

Heretic Wack

[zogofzorkon]

13. Yup

Just quit my job, looking forward to those pork ribs, but the porterhouse isn't bad either. Might just get me a govt cadillac too. Just loving that generous welfare system. Of course the reel prize would be one of those government payroll jobs. :rofl:

[Godhumor]

14. Welfare queens strike again!

They sure are crafty...

[proudohioan]

17. I hate to burst your bubble,

But most folks that are on food stamps actually have jobs. And I would imagine that the amount of UI benefits would not leave most folks living in the lap of luxury.

But why not quit your job anyhow, and then find out how well you will be living? Maybe your opinion would carry more weight..... Just a thought.

BTW, in my neighborhood, pork ribs are a bargain at $1.99 per lb.

[nichomachus]

19. The '70s just called -- they want their propaganda back

[Dappleganger]

23. Typical republiCON rant.

How do you like your pizza??

[superconnected]

27. I thought the person was being obviously facetious.

[conflictgirl]

24. Newsflash: most people on food stamps are working.

Anyone who would quit a job to try to live on $300 a month in food stamps is an idiot anyway. I love how people seem to think that you can live above the poverty level on welfare, or that much welfare even exists anymore anyway!

[Democat]

11. Obama's fault!

Well, isn't everything these days?

[killbotfactory]

15. How much of this is due to employers exploiting their workforce with the threat of unemployment?

I'm guessing productivity has gone up, due to employers demanding more and paying their employees less.

If people think there are jobs out there they will quit, or if they have been pushed to their limit.

[freebrew]

18. Pushed to the limit, more likely.

After searching 2 years, I got a job. Pay sucks, boss sucks.

Working 60 hrs/wk. No overtime, no benefits, no holidays off. Sundays only.

I suspect he will attempt to make me work longer hours, tourist season and all, I don't think I'll go for it.

I can say no, or just not do it. Either way he can fire me, in that case for cause, or I can quit and turn him into the state for all sorts of violations. But, he's one of the local favorites, won't go far.

When the market really turns around... just hoping there'll be some SS left for me...

[Tarheel_Dem]

16. Why would any responsible person quit a job, without having another lined up?

Someone made this claim on DU awhile back, that he/she voluntarily quit his/her job, and wasn't eligible for unemployment bennies. Well, DUH. The kicker was the the person was blaming the government because he/she had become one of the long term unemployed. I have no sympathy for self inflicted pain.

[nichomachus]

20. I'm responsible and I quit a job once with no other job lined up

In fact, I was the 17th person in a row to quit without having another job. I won't bore you with the details of the working conditions, but I would not have done that if it weren't called for.

In my exit interview, I told the HR bimbo just what was going on and reminded her that I was the 17th person to quit with no job to go to. They made my boss a vice president.

[DesertDiamond]

21. Are they quitting because of better jobs, or too exhausted from working two or three low-paid jobs?

[JoeyT]

25. Doesn't come as much of a surprise.

Everyone that could be laid off has been laid off. Now the workload, stress, shitty pay, and other miserable working conditions are causing the people that are left to quit. Most of us have had jobs like that at some point in our lives. Being driven to quit by shitheel bosses and companies is not only recession proof, but increases drastically in a recession.

[girl gone mad]

26. This is a silly statistic.

Without further data, we can't really extrapolate that this is an indication of anything at all.

Why are more people quitting?

Perhaps a spouse needs to relocate to find work?

Maybe their homes are being foreclosed and they've decided to start over somewhere else?

Maybe after years without a raise and with no prospects for advancing, they're going back to school or are moving back in with mom and dad?