Tags: job | rate | wages | quit

WSJ: Job Churn Rate Remains Low, Holding Down Wages

By    |   Monday, 14 July 2014 01:28 PM

One of the best ways for American workers to advance their careers traditionally has been to quit their jobs and find a better, higher-paying one.

But that has become a less-viable option, as good jobs have become hard to come by since the Great Recession, The Wall Street Journal reports.

The number of people bolting their jobs totaled only 2.5 million in May, down 19 percent from 3.1 million in 2006, though up from a trough of 1.6 million in 2009.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

Even Fed Chair Janet Yellen has expressed worry about the trend. "People are reluctant to risk leaving their jobs because they worry that it will be hard to find another," she said in March.

The situation is bad news for workers and the economy. Average hourly wages climbed only 2 percent in the year through June.

"One of the characteristics that is uniquely American is that changing jobs is the way you get promoted," Anthony Carnevale, an economist at Georgetown University, tells The Journal.

Meanwhile, many economists expressed enthusiasm with the June jobs report, which showed a 288,000 gain in non-farm payrolls.

But some analysts saw weakness behind those numbers. Lindsey Piegza, chief economist of Sterne Agee, is one of them.

"We're looking at this top line number and it certainly is impressive," she tells CNBC. "But I think we can all agree that the composition of the jobs being created is still very much in question."

For example, part-time jobs still account for almost 19 percent of the gain, Piegza notes. And temporary jobs, which typically account for 2 percent of the labor force, made up 16 percent of the gain.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

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One of the best ways for American workers to advance their careers traditionally has been to quit their jobs and find a better, higher-paying one.
job, rate, wages, quit
296
2014-28-14
Monday, 14 July 2014 01:28 PM
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