Friday, June 21, 2024

Report: Louisiana is in the top ten nationally for most workers quitting their jobs

by BIZ Magazine

By Victor Skinner | The Center Square contributor

A higher percentage of workers are quitting their jobs in Louisiana than in most other states in the country, according to a new study that ranked The Pelican State in the top 10.

The personal finance website WalletHub released an analysis on Friday that ranks all 50 states and the District of Columbia based on how frequently people quit their jobs, using data from the U.S. Bureau of Labor.

The study examined resignation rates over the last month, as well as the last 12 months, and ranked Louisiana 10th nationwide, ahead of neighboring Mississippi in 11th, Arkansas in 15th and Texas in 23rd.

The data shows Louisiana’s resignation rate is on the rise, with a rate of 4% over the last month and 3.37% over the past year. The state was among only seven states in the country with resignation rates at 4% or higher.

“It is clear that employers are struggling to attract workers. Many are raising wages, offering bonuses to new employees, or providing other inducements. This is one reason workers are leaving their jobs to take advantage of these inducements,” said Joshua Rosenbloom, an economics professor at Iowa State University. “But it has also made it hard for employers to meet demand. To some extent, employers want to avoid making permanent commitments to higher wages if the current conditions are temporary, so they may be expanding supply less and raising prices more.”

Colin Corbett, assistant professor at Bradley University, contends older workers are driving the shift in the labor force.

“Looking at Labor Force Participation Rate statistics, lower total LFPR is driven in large part by older workers. Rates for younger workers have mostly recovered to their pre-pandemic levels, but are still significantly lower for those above 55,” he said. “This is partially driven by the age profile of COVID victims, high asset prices helping retirement portfolios (although this has been largely reversed now), and the general difficulty of finding new work as an older worker.”

Rosenbloom believes “remote work and the other disruptions caused by the pandemic have likely also contributed to many people reassessing their preferences for where they live and how they work, which has led to more turnover too.”

The top 10 states with the highest resignation rates include Georgia in first, followed by Kentucky, Tennessee, Arizona, Wyoming, Montana, West Virginia, South Carolina, Alaska and Louisiana.

The 10 lowest resignation rates came from California in 42nd, followed by Washington, Illinois, Connecticut, Massachusetts, Minnesota, New Jersey, Pennsylvania, the District of Columbia, and New York.

The lowest resignation rate in the U.S. was in New York with a 1.9% rate over the last month, and 1.91% over the last year.

Georgia topped the list for the highest resignation rates over both the last month and the last year, with rates at 4.8% and 3.98%, respectively.

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