In this article, we will look at the 10 industries with the highest number of quits in the US. We have also discussed the great resignation and turnover expectations for 2024. If you want to skip our detailed analysis, head straight to the 5 Industries with the Highest Number of Quits in the US.
The Great Resignation, characterized by a massive increase in job quits, appears to be drawing to a close, marking the end of a tumultuous period in the workforce. Since the onset of the Covid-19 pandemic, millions of workers have left their jobs, with astonishing numbers quitting in 2021 and 2022. Anthony Klotz, who coined the term ‘Great Resignation,’ notes that resignation rates have returned to pre-pandemic levels according to May 2023 data from the US Bureau of Labor Statistics (BLS), indicating a normalization of the job market.
Economists attribute the decline in resignations to various factors, including economic instability and improved working conditions. The current economic uncertainty has made workers more cautious about quitting, leading to a slowdown in resignation rates. Additionally, many individuals who made significant career changes during the pandemic have settled into new roles, contributing to the decline in quits. Job satisfaction is reportedly at its highest level in nearly four decades, reflecting improved workplace conditions and employer efforts to retain talent.
Despite the overall decline in resignations, certain industries continue to experience high turnover rates, such as healthcare, manufacturing, and construction. While economists declare the Great Resignation officially over, they acknowledge that certain sectors may still struggle to find and retain workers. Currently, healthcare and hospitality are two of the industries in the US that have the biggest labor shortages.
It is also interesting to note that employers are bracing for increased turnover in the first half of 2024, as revealed by a recent study from Eagle Hill, signaling a potential increase in departures due to faltering confidence in leadership and overall workplace satisfaction. The survey was conducted nationally and pointed to a nearly 6-point decline in worker confidence regarding organizational stability and leadership, coupled with a 2.7-point drop in satisfaction with cultural elements such as connection and recognition. Despite these concerning trends, there’s a glimmer of hope as workers exhibit confidence in pay-related matters, with perceptions of compensation and future growth expectations rebounding by 2.5 points in the last quarter.
Moreover, as highlighted by iCIMS’ 2024 Workforce Report, 51% of surveyed individuals contemplate job changes, primarily driven by salary aspirations. Concurrently, 60% anticipate promotions, with 50% intending to seek new opportunities if promotions elude them. Such data confirms a shift towards prioritizing personal fulfillment over traditional work commitments. Employers are urged to capitalize on internal mobility, evidenced by a 13% decrease in external hires compared to the previous year, signaling opportunities for career growth within organizations.
Despite the optimism displayed by 87% of employees regarding job security, driven perhaps by economic stabilization, workforce strategies demand agility. HR leaders must nurture employee engagement through skill development initiatives, vital for retention and internal advancement. To read more about job security, see 22 Careers with the Best Job Security.
With an aim to impart education and skills, in 2018, Walmart Inc (NYSE:WMT) introduced a groundbreaking education benefit, offering $1-a-day tuition for approximately 30 college degrees. Fast forward to today, Walmart Inc (NYSE:WMT) is drastically reducing its degree offerings from 30 to just eight, while expanding short-form certificate programs to over 50 options.
The revamped program aims to equip employees with in-demand skills like generative AI and data-driven decision making. By doing so, Walmart Inc (NYSE:WMT) plans to fill around 100,000 jobs within the next three years, focusing on roles such as software engineering and pharmacy technicians.
While some may perceive the reduction in degree options as a limitation, Walmart Inc (NYSE:WMT) focuses on the benefits of short-term certificate programs. These programs typically take four months to complete, offering a quicker path to career advancement compared to the six to eight years typically required for a college degree.
One of the companies with the lowest turnover rates in the world is Apple Inc (NASDAQ:AAPL). Currently, the company is strategically expanding its Vision Pro VR headset beyond the US, with recent job listings in countries like Australia, China, and Japan hinting at an imminent global launch. Initially released solely in the US for $3,499, the Vision Pro’s international rollout has been eagerly anticipated. Job postings seeking “Briefing Experience Specialists” in these markets signify Apple Inc (NASDAQ:AAPL)’s intention to introduce the device to a broader audience.
Apple Inc (NASDAQ:AAPL)’s meticulous approach to ensuring a seamless customer experience, especially concerning fitting and prescription lenses, underpinned its initial US-only release. However, the ongoing language expansion and job listings suggest Apple Inc (NASDAQ:AAPL)’s readiness to cater to a global audience. While specific release dates remain undisclosed, these developments strongly suggest that the Vision Pro’s reach will extend beyond US shores soon.
A construction site featuring a large concrete foundation poured by the cement manufacturing company.
Our Methodology
To list the industries with the highest number of quits in the US, we relied on seasonally adjusted data on quit rates by industry from the Bureau of Labor Statistics, as of January 2024. The list is presented in ascending order.
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10. Mining and Logging
Quits Rate as of January 2024: 1.6%
In addition to volatile energy prices affecting the oil and natural gas drilling sector, the mining and logging industry in the US is facing high resignation rates due to several factors. One significant reason is increased concerns over workplace safety and environmental sustainability, prompting workers to seek alternative employment in less hazardous or more environmentally conscious sectors. Moreover, technological advancements and automation are reducing the demand for manual labor in these industries, leading to job insecurity and prompting workers to explore new career paths.
To read more about the dangers involved with jobs in this industry, see the most dangerous jobs in the world.
9. Manufacturing (Durable Goods)
Quits Rate as of January 2024: 1.6%
Manufacturing is one of the top industries with the highest number of quits in the US.
Let’s look at some of the reasons why the resignation rate in the industry is high. The nature of manufacturing work often involves physically demanding tasks, long hours, and repetitive duties, leading to dissatisfaction among workers. Secondly, wages in the manufacturing industry may not always be competitive compared to other sectors, prompting employees to seek higher-paying opportunities elsewhere. Thirdly, limited opportunities for career and professional growth can discourage employees from staying long-term.
8. Information
Quits Rate as of January 2024: 1.7%
The high quit rate in the information industry, especially among technologists, is driven by the rapid evolution of technology that necessitates continuous skill updates, prompting professionals to seek new roles offering better growth prospects. Moreover, intense competition fosters job mobility as individuals pursue higher pay and improved conditions.
Additionally, the widespread adoption of remote work expands the range of potential employers, granting technologists greater flexibility. These dynamics create an environment where professionals actively explore and capitalize on available opportunities, leading to the industry’s increased quit rate.
7. Construction
Quits Rate as of January 2024: 1.8%
Construction is one of the industries that need the most workers. In the US, the industry is facing major challenges, notably a shortage of skilled workers impacting project costs and timelines. Reports suggest over half a million positions need filling, including roles like heavy equipment operators, carpenters, and electricians. This deficit is worsened by factors such as the Great Resignation and a lack of young recruits. Construction companies are exploring solutions like training programs and technology integration. To read more about shortages, see 15 US States With The Highest Labor Shortages.
6. Manufacturing (Non Durable Goods)
Quits Rate as of January 2024: 1.9%
The manufacturing industry faces several major challenges in its workforce, reflected in alarming statistics. High turnover rates, averaging 39.9% according to the Bureau of Labor Statistics, pose a persistent obstacle. Such turnover not only disrupts production but also results in substantial financial losses due to the need for frequent retraining. Moreover, the sector struggles with a critical shortage of skilled workers, with Deloitte projecting over two million unfilled manufacturing jobs by 2025. This scarcity threatens the industry’s growth potential, potentially resulting in a $1 trillion loss to the US economy by 2030.
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Disclosure: None. 10 Industries with the Highest Number of Quits in the US is originally published on Insider Monkey.