According to a recent report, Americans are quitting their jobs at a pace not seen in 16 years. Economists believe the phenomenon is a clear sign that people’s confidence in an economic rebound is rising.
In January, around 3.22 million employed Americans resigned, a level unseen since 2001. The rate at which Americans quit jumped that month by 2.2%. Experts believe Americans are confident they’ll find a better place to work because people don’t usually quit unless they have confidence they’ll find something better.
CEOs Confident As Well
The recent report is consistent with past data which showed that Americans’ confidence in the economy has strengthened. This month, America’s most important CEOs and small business owners alike confirmed confidence is at a record high.
Earlier this week, a report showed the CEO Economic Outlook Index skyrocketed 19.1 points, hitting 93.3- which is the highest level in eight years. The index measures confidence across employment, investment, and retailing sector. A reading above 50 means the economy is expanding.
JPMorgan’s CEO Jamie Dimon underlined that business confidence and optimism are at record highs.
I am enthusiastic about the opportunity to enact a meaningful pro-growth agenda that will benefit all Americans,
The National Federation of Independent Business confirmed the CEOs’ enthusiasm. According to the group, small business confidence in February slipped from 105.9 a year prior to 105.3, which marks still one of the best levels since the beginning of the financial crisis. Small businesses are now also less likely to see government over-regulation as their greatest problem.
Optimism Should Translate Into Action
The NFIB, however, remained cautious. They noted that they have yet to see the surge in confidence transform into action. The NFIM wants to see spending and hiring jump as much as business owners’ enthusiasm and optimism.
The latest jobs report shows that more and more Americans are joining the workforce, which is another sign that there is a sustained optimism across the U.S. economy. Last month, the number of people who were employed versus those unemployed reached 60%, which is the highest level since Feb. 2009.
The recently-released figures also show that the discouraging trends noticed among the U.S. workforce are starting to fade out. The rate of participation of employees aged 25 to 54 jumped to 81.7% last month, which marks the highest level in six years.
The info about the number of Americans quitting their jobs was taken from the Job Openings and Labor Turnover Survey (JOLTS), which also revealed that at the start of the year, the U.S. economy had 5.63 million open positions.
In recent years, the number of available jobs has steadily increased and so did the hiring, which stood below the rate of job openings. Employers and economists believe the phenomenon is due to the “skills gap” issue which is currently one of the major factors that impede the U.S. economic growth.
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