People are quitting their jobs in SC at near record rates. Here’s why that’s a good thing

Quitters have been winning in South Carolina recently, at least where the job market is concerned.

Workers in the Palmetto State quit their jobs at near record rates in May and June, according to the latest U.S. Bureau of Labor Statistics. The high turnover means workers have more options and more power in the labor market than they once did, economic experts say.

“Economists view a high quit rate as a sign of healthy labor for workers because workers are typically more likely to leave a job when they have a better job offer or better job prospects,” said Scott Baier, chair and professor in the John E. Walker Department of Economics at Clemson University.

The statistics show that South Carolina had 82,000 job quits in June, up from 68,000 a year ago. May job quits were almost as high at 81,000.

“June’s reading of 82,000 quits is tied for the second highest on record,” Bryan Grady, labor market information director for the SC Department of Employment and Workforce said in a press release. “At least 80,000 people have left their job every month in 2022, a figure we had only seen once before. While the number of hires and job openings are slightly down, it is important to note that these changes are not statistically significant and both hires and job openings continue to greatly exceed the number of quits.”

June numbers show job openings remained high at 159,000 for the month.

“This is a continuation of the strong opportunities for workers in South Carolina,” Baier said. “Over the last 18 months, job openings have averaged 173,000 a month, which is notably higher than the pre-pandemic average of 109,000 from 2017-2019.”

Joey Von Nessen, Research Economist for the Moore School of Business at the University of South Carolina, agreed that more job quitters was a good sign for workers.

“Workers now have more negotiating power than they did before the pandemic, which means they are now more likely to quit their current job to pursue a new opportunity that may include higher pay or better benefits,” Von Nessen said. “It’s also generally less risky to quit an existing job for a new one when the labor market is strong.”

Von Nessen noted, however, that as the Federal Reserve continues to aggressively raise interest rates to combat ongoing high inflation, hiring will likely start slowing in the fall.

“Such a situation would almost certainly lower the job quits rate and may result in an uptick in the unemployment rate,” he said.