4.4 million people quit their jobs when unemployment benefits ceased: Should companies close?

Over 4 million people quit their jobs in September. The Department of Labor reported that 4.4 million workers resigned in September, the same month that extended unemployment benefits ended in parts of the United States

It was the second month in a row that millions of Americans walked away from work as competition intensified in the job market.

There were 200,000 fewer job openings in the latest data, but still 10.4 million open jobs. Recent estimates show that about 5 million older Americans have decided to retire.

Unrest in the labor market: Did unemployment benefits cause this?

No. Employment experts agree that what is happening in the workforce now is a recalibration, caused by intense competition among employers.

Suddenly, the minimum wage is not good enough, and frankly, a few dollars above the minimum wage – for what was previously considered novice work – is not enough either.

The economy is growing, and while some politicians point to unemployment benefits as a major cause of labor shortages, the reality is that when people resign, they accept better jobs.

Ella Wrights recently spoke with FingerLakes1.com about her experience. She switched through three jobs in 2021. She first returned to her pre-pandemic work when they reopened. “I was grateful to be back at work, but about two months after I returned, an offer came in that I could not refuse,” she said. It was for $ 3 more per hour. “I said ‘yes,’ and my leaders understood. I felt bad, but in the end, it’s every person for themselves out here.”

Two months later it happened again. This time for a position Wrights described as a “dream” opportunity. “It was a different job, but that kind of job I would not have been able to get before the pandemic. It was a combination of timing, opportunity and because of the competition better pay.”

She accepted that offer. “I earn about twice as much as I did before the pandemic,” Wrights told FingerLakes1.com. “It felt pretty life-changing.”

Like so many workers, Wrights found better opportunities through competition. But instead of the workers competing with each other – the employers compete for the best workers.

Employers say there are tough decisions ahead: Will prices rise in your favorite places?

Experts argue that the biggest driver of rising prices at this point is supply chain problems. The economy is growing because people are spending money.

“It’s almost impossible to keep staff at the moment. It’s not even frustrating – it’s insane,” said a tired restaurant owner. He spoke to FingerLakes1.com on condition of anonymity. “The workers are here for a few weeks, and so are “They’re gone because they’ve got a better deal. I understand that – they’re trying to do what’s best for their families and individual finances. I’m just saying as a business owner it’s hard.”

This has been especially the case in the service industry. Revenue has been hefty. But wages are rising more slowly based on employers’ fears of rising prices. As a result, many workers have left the industry altogether.

“If this continues, we will have to raise prices and raise wages dramatically,” the frustrated restaurant owner continued. “Maybe we’re okay if that happens, but it’s going to be a gamble.”

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