US Labor Market Reflects Major Changes

The US labor market is changing in significant ways, as shown by the latest data from the US Bureau of Labor Statistics.

There are jobs aplenty, with 11.4 million job openings in April, even if this is a slight decrease from the month before. According to jobs data, blue collar work in transportation, warehousing and manufacturing showed heavy increases.

Of note were the high number of “quits,” which is defined as a voluntary separation initiated by the employee. Quit rates reflect the measure of workers’ willingness or ability to leave jobs. In April, the number of quits was little changed at 4.4 million. This number might be “normal” in contemporary terms; but, in the last 20 years, quits have never been this high. 

In line with the “Great Resignation,” more people are leaving work on their own terms and not taking up jobs to which they would normally have rushed.

Analysts attribute this to several mega trends. These include workers seeking better work-life balance since the COVID-19 pandemic started, an increase in home businesses, and the so-called “gig” economy allowing more workers to combine multiple side contracts.

What does this mean for me? 

For traders who watch economic trends, it will not be lost on you that many retail investors have made enough money from trading on the side to leave their formal employment. This is not to suggest that the US jobs data is showing droves of traders leaving work, but simply that work-life balance is a theme that is not going away anytime soon, as borne out by measurable statistics.