N.H., Vt., Maine less likely to see mass resignations than most states, study finds

With Americans quitting their jobs at record rates during the so-called "Great Resignation," WalletHub this week released its report on 2022's States with the Highest Job Resignation Rates.

WalletHub ranked the 50 states and the District of Columbia based on how frequently people are leaving their places of employment. Below, you can see highlights from the report.

To view the full report and your state's rank, please visit:
https://wallethub.com/edu/states-with-highest-job-resignation-rates/101077


Expert Commentary

What are the main factors that are influencing this shift in the labor force?

"Different states have different economies, and we are seeing a greater increase in quit rates in states where there are fewer remote work options and lower unemployment rates. The low unemployment rates mean that there are more options for workers to move to jobs that are more attractive to them."
Joyce Jacobsen - Andrews Professor of Economics, Wesleyan University; President, Hobart and William Smith Colleges

"COVID-19 had a big impact on the labor market that altered the composition of the labor force and caused a sharp decrease in labor force participation. The effect of the pandemic was particularly acute for workers with certain demographic characteristics and working conditions. Many of the industries that were influenced significantly by the pandemic involve person-to-person contact and cannot be done remotely - for instance, food preparation and personal services. Women with children predominate in many of the occupations that were hardest hit at the start of the pandemic due to increased childcare responsibilities stemming from the shift to virtual learning at schools and the closure or reduced capacity of many daycare centers. Hispanic women, older workers, and immigrants also experienced greater job losses. Research shows that people who are out of the labor force have lower probabilities of transitioning into employment than those who are unemployed and that their return to the labor force often lags behind overall improvement in the economy."
Kuzey Yilmaz - Associate Professor, Cleveland State University

How is the decrease in labor force participation affecting the employers?

"After years of looser labor markets and stagnant wages, employers now face a labor market perhaps not seen in the US since the Dot.Com Boom of the late 1990s and early 2000s. With fewer prospective job applicants, companies must offer more competitive wages and more flexible working environments to attract employees. Simultaneously, employers have to worry about their existing employees who might also quit for better opportunities. If employers bring in new employees at higher levels of compensation or different flexible working arrangements, existing employees will take note and ask for the same. All the while, employers must continue to meet customer needs. As job vacancies mount, as newly hired employees get up to speed in new jobs, it becomes more challenging to meet customer needs. The net effect of this is companies will see labor costs rise while potentially seeing an impact on revenues if customers become dissatisfied."
Anthony R. Wheeler, Ph.D. - Dean, School of Business Administration, Widener University

"We certainly have a tight labor market. This is forcing employers to offer better wages and working conditions, and some are finding it difficult to hire or hold onto workers because other employers are also improving wages and working conditions. Tight labor markets see high quit rates because workers can take a chance on a job, they think they might prefer in the knowledge that they can switch jobs again relatively easily if they do not like their new job."
Kevin Lang - Laurence A. Bloom Professor of Economics, Boston University

Have the pandemic and the remote working determined, in any way, this change in the labor force?

"Definitely. Women are still staying out of the labor force as school and child care COVID restrictions continue to keep some children at home. Others are staying home to reduce the possibility of infection for loved ones who are immunocompromised. Some workers, particularly younger and middle-aged workers, have taken the opportunity to take a sabbatical from work. And other workers have chosen to retire earlier than originally planned, given difficult work conditions and improved savings and pension values. The burnout rates are higher in some professions, like health care and teaching than in others that were able to pivot to remote work."
Joyce Jacobsen - Andrews Professor of Economics, Wesleyan University; President, Hobart and William Smith Colleges

"The pandemic has accelerated existing trends in remote work, e-commerce, and automation, with many workers needing to switch jobs. Many businesses that support traditional office work, especially in transportation, leisure, and hospitality will shrink permanently. Many [more] workers may need to switch occupations than before the pandemic. Businesses and policymakers will need to take steps to support additional training and education programs for workers."
Kuzey Yilmaz - Associate Professor, Cleveland State University