Quit rates fall in the US and UK as workers stay put

In short: Fewer people in the US and UK are quitting their jobs, a shift some are calling the “Great Hunkering Down.”

What's going on

New figures show workers are much less likely to leave their jobs than they were a few years ago. In the US, the “quit rate” (the share of workers who leave their jobs by choice) rose to about 3% in 2021, up from around 2.3% before the pandemic. It has now fallen to about 1.9%, which is one of the lowest levels in roughly a decade, outside the pandemic period.

The UK shows a similar pattern, according to the Financial Times column. This marks a clear change from the period often called the “Great Resignation,” when many workers felt confident enough to move on for better pay, better conditions, or a different lifestyle.

The column suggests several reasons people may be staying put. There is broad uncertainty in the economy, including trade tensions and wars. There are also repeated warnings about AI possibly replacing some jobs, which can make people less willing to take risks. The article also notes that some people who moved farther away from big cities during the remote work boom may feel “stuck,” because nearby job options may not match their needs.

What to watch

Lower quitting can be good for individual companies because it means fewer people to replace. But it can be a bad sign for the wider economy, because switching jobs often helps move workers from slower companies to faster-growing ones, like people changing lanes to keep traffic flowing. Watch whether AI mainly helps people do their current jobs faster, or whether it eventually pushes larger job changes.

Source: Financial Times