U.S. Department of Labor Secretary Marty Walsh reacts to the economy adding 428,000 jobs in April, beating estimates by economists.
Americans continued to quit their jobs at a rapid pace in April, emphasizing how persistent turmoil in the labor market has made it difficult for employers to fill open positions.
The Labor Department said Wednesday that 4.4 million Americans, or about 2.9% of the workforce, quit their jobs in April. That’s down slightly from the high of 4.5 million recorded in March, but well above the pre-pandemic level of about 3.6 million.
HIGH INFLATION COULD BE ‘PAINSTAKINGLY SLOW’ TO COME DOWN
Meanwhile, the number of job openings fell slightly to 11.4 million by the end of April – the second-highest level on record.
The data emphasizes how newly empowered workers are quitting their jobs in favor of better wages, working conditions and hours as businesses lure new workers with higher salaries – a new trend dubbed the “Great Resignation.” As a result, Americans’ incomes are rising across the board as employers have ramped up hiring to offset the losses.
The highest inflation in decades, however, has eroded the pay gains for many workers: The Labor Department reported on last month that average hourly earnings for all employees actually declined 2.6% in April from the same month a year ago when factoring in the impact of rising consumer prices.
On a monthly basis, average hourly earnings dropped 0.1% in April, when accounting for the inflation spike.
Resignations in April were concentrated in accommodation and food services, health care and social assistance, and transportation, housing and utilities. A majority of people quit for a new job.
The number of available jobs has topped 10 million for nine consecutive months; before the pandemic began in February 2020, the highest on record was 7.7 million.
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The data precedes the release of the May jobs report on Friday morning, which is expected to show that employers hired 325,000 workers following a gain of 428,000 in April. The unemployment rate is expected to inch down to 3.5%, the lowest since the pandemic began two years ago.
