America is seeing an increase in people quitting their jobs

The United States experienced an increase in people quit their jobs from September to October, according to new data from the US Bureau of Labor Statistics.

The dropout rate grew from 1.9 to 2.1 percent between September and October. This was significantly higher than the percentage of Americans dismissedwhich was just 1 percent across all industries, according to the Bureau of Labor Statistics in October.

According to Alex Beene, the latest round of employee resignations reflects the trends experienced in the past year.

“Since pandemicwe’ve had many workers in roles that have seen additional responsibilities added to their workload, either due to other employees leaving or being laid off or more demand for the goods and services their company provides,” Beene said Newsweek.

“We have also seen more job hopping, as an abundant labor market in many sectors makes it easier to find another opportunity quickly. All these elements mean that a perfect situation for termination escalates month by month, and it is unlikely that we will see much change in these rates until new job openings begin to decline.”

However, the layoffs were not consistent across all industries. Lodging and food service saw an increase of 90,000 job openings, and private education and health services also grew by 47,000.

“Having observed labor market cycles for decades, I see these trends as a double-edged sword,” said Michael Ryan, a financial expert and the founder of michaelryanmoney.com. Newsweek. “Increasing attrition rates can stimulate productivity by allowing workers to find more suitable roles. At the same time, sustained turnover strains businesses—especially smaller businesses—by increasing recruiting costs and disrupting operations.”

There were also some geographical differences. The West saw 213,000 more quits, while the Midwest saw an increase of 94,000. The North East and South, on the other hand, saw a decrease in resignations.

Still, HR Bryan Driscoll said on a large scale, workers are rethinking their relationship with work, a trend that also started around the 2020 pandemic.

“People have realized that they deserve better than a crappy paycheck and an employer who sees them as disposable,” Driscoll said Newsweek. “A lot of workers simply can’t afford to go without pay, which leaves them in bad roles, which is definitely a form of prison and a benefit to companies. Lots of workers can also afford to walk away, a privileged place to be. “

Many workers bide their time, build their own income or hold out for a new job that will pay higher or offer more flexibility.

On the other hand, layoffs, while rising, are still at historic lows, Driscoll said.

“It shows who holds the cards and reveals a labor market that gives workers more say, more leeway, at least for now,” Driscoll said.

Jennifer Lee Magas, a communications professor at Nova Southeastern, echoed that sentiment.

“Employees have realized that they want more than just a paycheck; they want purpose, flexibility and work-life balance,” Magas said Newsweek. “In a tight labor market, workers know they have the upper hand, and they’re not afraid to walk away if their needs aren’t met.”

Kevin Thompson, a financial expert and founder and CEO of 9i Capital Group, said resignation rates tend to increase at the end of the year, especially in the hospitality and professional business sectors.

“Factors such as year-end adjustments and a shared desire for a fresh start in January are driving many individuals to seek new job opportunities,” Thompson said. Newsweek. “Additionally, people are looking for higher-paying jobs or more hours to help cover holiday shopping expenses, which can contribute to higher termination rates in lower-paying industries.”

By 2025, employers should expect more workers to leave if they don’t provide quality pay, flexible hours and work-life balance, he added. But Trump’s new administration may change these trends.

“We have a new administration coming in, one that loudly favors tipping the scales in favor of business,” Driscoll said. “If we see the new administration roll back worker protections that make it harder to jump ship, these recent trends could stall or even reverse. Some companies may even hold off on major changes, hoping that a friendlier White House will tip the scales back in their favor.”

While there will likely be a significant increase in layoffs in 2025, Integrity Resource Management President and Founder Keith Sims said there will also be a boost in hiring.

“During 2024, companies did not invest in growth and slow rolling costs for planned upgrades due to the volatile geopolitical circumstances,” Sims said Newsweek.

“As companies feel more confident in their ability to predict the market, they will move their projects forward. As employees see this shift in the company’s mindset, they will be more likely to put their hat in the ring for external roles.”