2.1 million Americans quit their jobs

As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading. Approximately 2.1% of the total non-farm employees quit their jobs. What does this indicate?

Employees tend to quit their jobs only when they are confident about finding a better opportunity. Even a moderately higher quit rate is a positive sign. However, a sudden jump in the quit rate in any industry must be analyzed a little deeper, as workers leaving in large numbers could mean they are worried about the future of the industry they work in.

How Many Americans Quit Their Jobs in August?

What does the recent quit rate indicate? 

The quit rate of 2.1% for August was among the highest readings for this index. The mining (XME) and logging (CUT) industries saw the highest quit rates in July but saw some relief in August. The largest quit rate in August was in the accommodation and food services (PBJ) sector, followed by the leisure and hospitality (PEJ) sector. There was no seasonality reported in this month’s JOLTS data, indicating that the people who quit could have done so with a better offer in hand.

The JOLTS report also segregates data based on location. The four regions are the Northeast, South, Midwest, and West. The quit rate was mostly unchanged in three out of the four divisions. The southern region, which was impacted by the recent hurricanes, saw a decline in the quit rate from 2.6% to 2.3% of the workforce.

Key takeaway from this report

The recent JOLTS report data indicate that the US economy and companies (QQQ) continue to be in a good state. The number of job openings was high, and the unemployment rate remained low. The hurricanes’ impact on the job market was limited, which could mean that the US Fed could continue with its tightening plans in December.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.