With Sluggish Job Market Quitting Is Not An Option

by Don Azarias
Ocotber 16, 2012
On September 12, 2012, the business section of the Chicago Tribune carried this byline: “In August the unemployment rate fell slightly…because so many quit looking for work…The number of people working or looking for work has dropped to a 30-year low…while the skills of millions degrade.”
Now who says that the unemployment rate is down? It’s not. And the truth is the recent 8.1 percent jobless rate is grossly understated as the Tribune article said,…”because so many quit looking for work.”
For the readers’ information the number of workers who stopped looking for work is no longer included in the government report. In reality, a broader federal government measure shows 14.7 percent of Americans either unemployed or underemployed in part-time work. The job market is so pathetic as reflected in Economist David Rosenberg’s comment that “America has as many idle adult workers as the entire German population.”
Of course, for President Barack Obama, an 8.1 percent unemployment rate is a better campaign figure than a 14.7 percent. And the Obama administration is trying hard to lend a hand in presenting a convoluted government report in order to confuse the unsuspecting American public.
Well, going back to the job market, it’s truly ironic when you look back……
Long before the Great Recession wrought havoc on the U.S. economy, quitting your job, for whatever reason, was a lot easier to do. Feeling stressed out or burned out or you don’t like your boss? No problem. You can always leave your job and, in a couple of weeks or at least a month, you will find yourself landing a better and a high paying job.
Of course, those were the good old days. Try quitting your job now and you’ll be in for a rude awakening.
According to a report from the Labor Department, there were 2.1 million people who quit their job in May. That’s barely a change from April and up only slightly from the year before. Growth in job quits can be a good sign for the labor market, as it signals that workers are more confident about their chances to trade up on their job.
Gad Levanon, director of macroeconomic research at The Conference Board, had this to say:
“In general people are still hesitant to leave their jobs; they still don’t see a lot of opportunities elsewhere. That means that the rate of people leaving their jobs shows a different dimension from the headline-grabbing monthly employment numbers. The stagnant quits rate is yet another sign that labor market growth is painfully anemic, and that workers understand that reality all too well.”
Job openings have grown sharply, climbing more than 50 percent from the end of the recession, with 3.6 million open positions in May. It’s unclear why hiring hasn’t shown the same healthy growth as job openings. Some experts say it reflects a skills gap: a gulf between the qualifications that workers have and the skills that employers are demanding. Levanon agrees that this may be the case, but placing all the blame on workers may be a mistake.
“I think a skill gap is one explanation, but I also think that another explanation that is held by some economists is recruiting intensity—companies are not that desperate to fill a position now, compared to times where they are more desperate to do so. Overall, there is no indication that the labor market is going to pick up anytime soon,” says Levanon.
For the nearly 13 million unemployed Americans, however, the bottom line remains the same: a job market that is showing little promise of relief. And the 13 million supposedly unemployed workers could be understated as the numbers of those unemployed who stopped looking for work may not be included in that count.
Also, according to data analysis conducted by the AARP, there’s a 103 percent increase in the unemployment rate among the 55-and-older workers.
Equally sobering is the Bureau of Labor Statistics report that it takes an average of 38 weeks for the rest of the unemployed workers to find work.
For those who are planning to quit their jobs, you can do so at your own risk. Maybe you should just have to wait to get fired (as long as it is not for cause that could impact your plan to collect unemployment benefits ) or get laid off.
In this kind of economy, workers, especially those aged 50 and over, don’t have much of a fighting chance competing with younger workers in the current job market. They should also be reminded that it’s employers’ market in this economic climate. And they don’t have much of a choice in the final analysis.
So, for those workers who are planning to quit their jobs because it’s getting to be a pain in the neck, you should weigh the pros and cons before deciding to leave. If you can still endure your neck’s pain, don’t leave your current job unless there’s a solid job offer and commitment from another employer.
But there’s really nothing better than to wait and retire until your full retirement age in order to enjoy your retirement with your full retirement benefits. That’s the best move you can do for yourself and your family. Furthermore, you’ll find that the pain in the neck is gone, for good.