In November 2021, the U.S. workforce sent a seismic shock through the economy as a record 4.53 million people handed in their resignations in a single month, sparking the historic and data-rich phenomenon we now call the Great Resignation.
Key Takeaways
- In November 2021, the US saw a record 4.53 million quits, the highest monthly total ever recorded by the BLS, marking a 0.2 percentage point increase from October
- The quit rate reached 3.0% in November 2021, the highest since the series began in December 2000, affecting all major industries
- From January to November 2021, total quits exceeded 40 million, surpassing pre-pandemic levels by 25%
- Leisure and hospitality saw 1.2 million quits in Nov 2021 alone
- Healthcare quits rate reached 3.5% in 2021 peak, highest among sectors
- Retail trade quits totaled 1.0 million monthly average in 2021
- 25-34 year olds quit at 3.2% rate in 2021, highest demographic
- Workers aged 35-44 quit rate 2.4% annual 2021 average
- 45-54 year olds had 1.8% quit rate, lower than younger cohorts
- Average wage growth accelerated to 4.7% in 2021 amid quits
- Nominal wage increase 5.1% YoY Dec 2021, highest since 2001
- Leisure/hospitality wages up 15% in 2021 due to quits
- 41% of companies raised wages in response to 2021 quits
- 50% of firms increased signing bonuses by 20% avg 2021-22
- Remote work offers doubled from 5% to 12% jobs 2021
The Great Resignation saw a historic and widespread surge in workers voluntarily quitting their jobs.
Demographics
- 25-34 year olds quit at 3.2% rate in 2021, highest demographic
- Workers aged 35-44 quit rate 2.4% annual 2021 average
- 45-54 year olds had 1.8% quit rate, lower than younger cohorts
- 55+ workers quit rate 1.2%, most stable group 2021
- Women quit rate 2.6% vs men 2.3% in 2021
- Black workers quit rate 2.7%, highest racial group 2021
- Whites quit 2.4%, Asians 2.1% quit rates 2021 average
- Hispanics quit 2.9%, driving ethnic turnover 2021
- Less than HS diploma quit rate 3.5%, highest education level 2021
- HS graduates quit 2.8%, some college 2.5% rates 2021
- College grads quit 1.9%, lowest edu group 2021
- Full-time workers quit 2.5x part-time rate in 2021
- Millennials (25-40) 60% considered quitting per Deloitte
- Gen Z quit rate 4.2%, leading age group 2021-22
- Parents with young kids quit 2x non-parents rate 2021
- Remote workers 2x more likely to quit voluntarily 2021
- Low-wage (<$40k) workers quit rate 4.0% vs high-wage 1.5% 2021
- Urban workers quit 15% higher than rural in 2021 surveys
- 52% of women vs 45% men job hunted in 2021
- Native Hawaiian/Pacific Islanders quit rate 3.1% highest ethnic 2021
- Self-employed quit proxy (business closures) up 20% 2021 young adults
- 16-19 year olds quit seasonally high 5.8% summer 2021
- Married workers quit 10% less than single 2021
Demographics Interpretation
The Great Resignation data reveals a workplace rebellion that was loudest among the young, the underpaid, and the overburdened, proving that a bad job, like a bad roommate, is easiest to leave when you have the least to lose and the most life left to live.
Economic Effects
- Average wage growth accelerated to 4.7% in 2021 amid quits
- Nominal wage increase 5.1% YoY Dec 2021, highest since 2001
- Leisure/hospitality wages up 15% in 2021 due to quits
- Job switchers gained 10% wage premium vs stayers in 2021
- Inflation-adjusted wages flat despite nominal gains 2021-22
- Productivity per worker fell 1.5% in 2021 amid turnover
- Unemployment rate dropped to 3.9% by end-2021 despite quits
- Labor force participation fell to 61.3% in 2021 from 63.3% 2019
- 4 million workers left labor force permanently by 2022
- GDP growth 5.9% 2021 boosted by consumer spending post-quits
- Corporate profits up 30% in 2021 despite hiring challenges
- Small businesses vacancy rate 8% vs 5% large firms 2021
- Consumer confidence index peaked 115 in 2021 amid job mobility
- Household savings rate dropped to 3.8% 2021 from 16% pandemic
- Overtime hours up 10% in manufacturing compensating quits
- Prime-age participation gap widened 2% for men 2021
- Federal stimulus correlated with 20% quit surge Q2-Q4 2021
- Regional quits highest South 2.8% vs Northeast 2.1% 2021
- Gig economy participation up 15% as quit alternative 2021
- 8.5% wage growth for switchers in low-wage sectors 2021
- Cost to replace worker averaged $15k amid 2021 quits
- Inflation hit 7% Dec 2021, eroding real wage gains
- 70% of quitters found new jobs within 3 months 2021-22
- Job satisfaction rose to 51% post-quit for movers 2021
Economic Effects Interpretation
While the historic game of musical chairs saw workers finally snagging a raise, the music of inflation and flat productivity meant the party's real punchbowl was, frustratingly, still half empty.
Employer Responses
- 41% of companies raised wages in response to 2021 quits
- 50% of firms increased signing bonuses by 20% avg 2021-22
- Remote work offers doubled from 5% to 12% jobs 2021
- 33% of employers improved benefits packages post-2021 quits
- Training investments up 25% to retain amid resignation wave
- 65% of quitters cited no career development as reason 2021, prompting programs
- Mental health benefits adopted by 40% firms new in 2021-22
- Flexible hours offered by 58% employers up from 37% pre-2021
- Retention bonuses implemented by 30% companies Q4 2021
- Employee engagement surveys up 50% usage post-resignation
- 4-day workweek trials by 20% firms in response 2021-22
- DEI initiatives boosted 35% funding amid talent wars 2021
- Turnover costs estimated $1 trillion US economy 2021, spurring changes
- 75% managers untrained for retention pre-2021, now 60% trained
- Childcare support added by 25% firms for parents 2022
- Wellness programs expanded to 70% large firms post-quits
- Internal mobility promotions up 40% to curb external quits
- Pay transparency policies adopted by 45% post-2021 surveys
- Hybrid models permanent in 52% offices by 2022 response
- Exit interviews standardized in 80% firms amid wave
- 55% CEOs personally involved in retention strategies 2022
- Job sharing/flex roles increased 30% offerings 2021-22
Employer Responses Interpretation
The workforce’s mass exodus wasn't just a resignation letter; it was an itemized bill that companies finally decided to pay in currency ranging from cash and flexibility to training and dignity.
Industry Impacts
- Leisure and hospitality saw 1.2 million quits in Nov 2021 alone
- Healthcare quits rate reached 3.5% in 2021 peak, highest among sectors
- Retail trade quits totaled 1.0 million monthly average in 2021
- Construction sector quit rate at 2.8% in late 2021, up 50% from 2019
- Professional/business services had 900k quits in Nov 2021
- Manufacturing quits up 25% YoY to 350k monthly in 2021
- Accommodation/food services quit rate 6.4% peak in 2021, double overall
- Transportation quit rate 3.2% in 2021, driven by drivers
- Finance/insurance quits steady at 1.8%, lowest among majors
- Education/health services saw 700k quits monthly peak 2021
- Wholesale trade quits rose 40% to 150k monthly in 2021
- Information sector quit rate 2.5% in 2021, tech boom related
- Government quits minimal at 1.0% rate, stable amid private surge
- Mining/oil/gas quit rate spiked to 4.0% in energy boom 2021
- Arts/entertainment/recreation quits 5.5% rate peak 2021 reopening
- Other services quit rate 3.8% in 2021, personal care driven
- Federal government quits lowest at 0.8% throughout 2021-22
- State/local govt quits rose to 1.5% amid teacher shortages 2021
- Durable goods manufacturing quits 3.1% peak
- Nondurable goods quits steady 2.9%, food/bev led
- Tech industry (info sector) saw 20% quit increase 2021
- Hospitality turnover 150% annual rate in 2021
- Retail quit rate 4.0% average 2021
- Healthcare worker quits up 30% in nursing 2021
- Construction quits doubled to 500k total Q4 2021
Industry Impacts Interpretation
When the world reopened for business, it seems a staggering number of employees decided the business they were in was no longer their business, with hospitality and healthcare workers leading the charge out of the door while government employees, for better or worse, largely stayed put.
Post-Resignation Trends
- Quits declined 25% by mid-2022 after response measures
- Job openings-to-quits ratio fell from 1.2:1 to 1.0:1 by 2023
- 58% of 2021 quitters happier in new roles per surveys
- Regret quitting reported by 40% within 6 months 2022
- Labor hoarding emerged, quits down but openings high 2023
- Quiet quitting trend rose, 50% disengaged post-peak 2022
- Re-entry rate 70% for quitters by 2023
- Wage growth slowed to 3.5% as quits normalized 2023
- Burnout cited less, career growth more in later quits 2022-23
- Hybrid work stabilized at 28% full remote by 2023
- Turnover intent fell from 30% to 16% by 2023 Gallup
- Sector recovery uneven, hospitality quits still 4% 2023
- Boomerang hires up 15%, rehiring quitters 2022-23
- Engagement rose to 34% post interventions 2023
- AI hiring tools adopted 40% to fill post-quit gaps
- Participation rebounded to 62.7% by 2023
- Great Regret: 72% job seekers paused amid recession fears 2023
- Monthly quits averaged 3.6M stabilizing 2023
- Skill-based hiring up 50% post-turnover learnings
- Female participation gap closed 1% post-2022
- Corporate culture focus shifted 80% priority 2023 surveys
Post-Resignation Trends Interpretation
The data paints a picture of a collective workplace hangover: after the raucous party of 'The Great Resignation,' we sobered up, realized some of our new jobs weren't the soulmates we'd imagined, and quietly slunk back to our old flames with a begrudging promise to finally fix the leaky tap of lousy corporate culture.
Quit Rates and Volumes
- In November 2021, the US saw a record 4.53 million quits, the highest monthly total ever recorded by the BLS, marking a 0.2 percentage point increase from October
- The quit rate reached 3.0% in November 2021, the highest since the series began in December 2000, affecting all major industries
- From January to November 2021, total quits exceeded 40 million, surpassing pre-pandemic levels by 25%
- In 2021, the annual quit rate averaged 2.5%, up from 2.0% in 2019, driven by labor market tightness
- December 2021 quits hit 4.33 million, with a rate of 2.9%, continuing the elevated trend
- Quit rate peaked at 3.04% in low-wage leisure and hospitality sector in late 2021
- Total separations reached 6.5 million in November 2021, with quits comprising 70% of them
- From 2020 to 2021, quits increased by 50% year-over-year in Q4
- In January 2022, quits were 4.0 million at 2.7% rate, down slightly but still high
- Quit rate for women rose to 2.8% in 2021, higher than men's 2.3%
- Native-born workers quit at 2.6% rate in 2021 vs 1.8% for foreign-born
- Youth (16-24) quit rate hit 4.5% in 2021, double the overall average
- By March 2022, cumulative quits since Jan 2021 exceeded 47 million
- Quit rate fell to 2.2% by mid-2022 but remained 20% above 2019 levels
- In 2021, 47% of US workers considered quitting, per Gallup
- September 2021 saw 4.4 million quits, highest at the time
- Total quits in 2022 reached 50.8 million for the year
- Quit rate in professional services hit 2.1% peak in 2021
- Layoffs minimal at 1.2% rate, quits drove 80% of separations in 2021
- By end-2021, quits were 40% higher than 2019 average monthly
- Quit rate for Hispanics reached 2.9% in 2021 annual average
- In Q1 2022, 4.5 million monthly quits average
- Overall separation rate peaked at 4.2% in Nov 2021
- Quits in manufacturing up 30% YoY in 2021
- 2021 saw highest quits since BLS tracking began in 2001
- Quit rate dropped to 2.0% by Dec 2022, normalizing post-peak
- Total job openings hit 11 million in 2021 amid quits
- Quits accounted for 25% of labor force turnover in 2021
- Peak monthly quits per capita reached 3% of employed in late 2021
- By 2023, quits stabilized at 3.6 million monthly, 20% above pre-pandemic
Quit Rates and Volumes Interpretation
The American workforce staged an unprecedented collective walkout, proving that when people are told for two years they are 'essential' yet treated as expendable, they will finally, en masse, decide to become non-essential somewhere else.
Sources & References
- Reference 1BLSbls.govVisit source
- Reference 2FREDfred.stlouisfed.orgVisit source
- Reference 3GALLUPgallup.comVisit source
- Reference 4FEDERALRESERVEfederalreserve.govVisit source
- Reference 5PEWRESEARCHpewresearch.orgVisit source
- Reference 6MCKINSEYmckinsey.comVisit source
- Reference 7HOSPITALITYINSIGHTShospitalityinsights.ehl.eduVisit source
- Reference 8SHRMshrm.orgVisit source
- Reference 9AHAaha.orgVisit source
- Reference 10DELOITTEwww2.deloitte.comVisit source
- Reference 11CENSUScensus.govVisit source
- Reference 12NFIBnfib.comVisit source
- Reference 13NBERnber.orgVisit source
- Reference 14NEWSnews.gallup.comVisit source
- Reference 15FLEXJOBSflexjobs.comVisit source
- Reference 16HBRhbr.orgVisit source
- Reference 17PRNEWSWIREprnewswire.comVisit source
- Reference 18FORBESforbes.comVisit source
- Reference 19BUSINESSINSIDERbusinessinsider.comVisit source
- Reference 20OPPORTUNITYATWORKopportunityatwork.orgVisit source
- Reference 21LINKEDINlinkedin.comVisit source
- Reference 22GLASSDOORglassdoor.comVisit source
- Reference 23CONFERENCE-BOARDconference-board.orgVisit source