Hospitality workers are quitting at the fastest rate in 20 years just as employers are raising wages, showing the strange state of the recovery
- Wages are raising for American workers, especially those in
- The number of workers quitting is at multi-decade highs, potentially over pay and conditions.
- The two contrasting trends show the issues the American
economyfaces in getting workers back.
In May, wages for workers grew as employers struggled to hire. It seemed to show that businesses were embracing a simple strategy for luring workers back: Paying them more.Wages rose across the board for workers, increasing by $0.15 to average hourly earnings of $30.33. As Insider previously reported, the wage gains made up the fastest rate in wage growth since 1983 (excluding a 2020 peak at the onset of the pandemic).
In fact, even employed Americans are looking elsewhere for work.
A whole lot of workers are quitting their jobsAbout 4 million workers quit their jobs in April, bringing
In leisure and hospitality, quits were up from March to April. In March, the quits rate for leisure and
And federally mandated wages still remain low, especially as talks to increase the federal
Democrats have cheered the trend. Rising wages "aren't a bug" but "a feature" of the labor market's recovery, Biden said in a May 27 speech. Improved wage growth, particularly for low-income Americans, is long overdue and gives workers the bargaining power they deserve, the president added."Instead of workers competing with each other for jobs that are scarce, we want employers to compete with each other to attract workers," Biden said. "We have more than ample room to raise workers' pay without raising customer prices."
But while wages have soared for two months straight, some experts don't expect the rally to last. The expiration of enhanced unemployment benefits, new school year, and continued vaccination should all drive more Americans into the labor force by the fall, Federal Reserve Governor Lael Brainard said earlier this month. The shift will also drive "further progress" toward's the Fed's employment target as demand for labor holds at record levels, she added.
- Delhi reports its lowest daily COVID-19 cases in 104 days, records 213 single day COVID-19 cases
- Here’s how to recharge your Reliance Jio on WhatsApp
- India may classify Bitcoin as an asset class, but that may not solve the underlying problem
- Facebook rolls out new chat themes and payment options in Messenger app for US users
- Dodla Dairy's ₹520 crore IPO isn't to expand into new markets but to strengthen its foothold where it already exists