Thursday, October 17, 2013
Bad sign--people scared to leave jobs
Layoffs are back below pre-crisis levels. New jobless insurance claims are down to a six-year low.
But--biggie--workers are not quitting to get better jobs. Companies are also not filling vacancies.
In 2007, three million workers quit. Last July, 2.3 million did.
A job vacated by someone, an existing job, may be easier to get--but harder to find.
Changing jobs is an important way to increase wages--which are stagnating. The best time to quit for a better job is when you are young--to get on the job ladder. But the young people who are finding work are clinging to the rung they are on.
Actually this started before the recession or whatever they call it. Geographic mobility, new business formation--these were down before.
The economy is losing it's mojo--which sounds hip but isn't.