As job openings surge, Americans are increasingly quitting their jobs.
Both job openings and the quitting rate rose in July, Bloomberg reported Tuesday. New data from the Labor Department shows that the number of open positions is at a record high compared to recent decades, and more people quit their jobs than any other time since 2001. The two statistics could push wage growth, as sustained labor market strength increases competition for qualified workers.
Experts also warned that worker shortages could slow economic growth, reports Reuters. The Federal Reserve is now increasingly likely to raise interest rates later this month, for the third time this year.
There are now 6.82 million jobs waiting to be filled, the Labor Department report showed. That's 659,000 more positions than unemployed people, but hiring rates have remained steady in recent months. Many of the openings are reportedly in the manufacturing, hospitality, and finance industries.
Quitting rates, on the other hand, are sky-high — 3.58 million Americans quit their jobs, a rate of 2.4 percent. Officials say the high rate signals confidence among workers that the job market is strong.
"Workers are leveraging the tighter labor market to find new opportunities and employers are poaching workers from other firms," economist Nick Bunker told Reuters. "The next question is how more quitting will translate into higher wage growth." Read more at Bloomberg. Summer Meza