This Week in 5 Numbers: Why Fewer Workers Are Quitting and What It Means for Employers

"Workers quitting at the lowest level in a decade signal a shift in labor dynamics." Source: HR Dive
The U.S. labor market continues to evolve, and recent data suggests a notable shift in employee behavior. For the first time in over a decade, the number of U.S. workers quitting their jobs has fallen to its lowest level since the Bureau of Labor Statistics (BLS) began tracking this metric. This trend has significant implications for businesses across industries, particularly in the realm of workers’ compensation, insurance, and payroll. Let’s break down the five key numbers from this week’s report and explore what they mean for employers and HR professionals.

1. 2.2% — Quit Rate in April 2024

The BLS reported a quit rate of 2.2% in April 2024, down from a peak of 3.0% in April 2022. This marks the lowest quit rate since 2014, signaling a decline in employee mobility. While the Great Resignation era saw workers leave their jobs in droves for better pay or improved working conditions, today’s environment appears to be one of retention, not turnover.

2. $2.36 billion — EEOC’s Pre-Litigation Recovery

The U.S. Equal Employment Opportunity Commission (EEOC) announced it secured a record $2.36 billion in pre-litigation recoveries in FY 2023. This figure is a reflection of the growing focus on workplace compliance and the real costs of failing to maintain equitable employment practices. As employers retain workers for longer, the risk of unresolved disputes leading to litigation or regulatory penalties increases.

3. 2.6 million — Workers Quitting in April 2024

Despite the overall decline in the quit rate, 2.6 million workers still voluntarily left their jobs in April 2024. This number is still a large base, and for many industries—especially those with high turnover, like retail and hospitality—2.6 million is still a considerable challenge. The change, however, suggests a stabilization in employee expectations and a shift in the balance of power back to employers.

4. 1.7 years — Average Time Workers Stay in a Job

According to recent research by the Bureau of Labor Statistics, the average length of time U.S. workers stay in a job has increased to 1.7 years, up from 1.3 years in 2022. This may be due to several factors, including economic uncertainty, job insecurity, or a more mature workforce. Regardless of the cause, this trend has implications for payroll and benefits planning. Employers must now consider longer-term workforce planning and adjust compensation, training, and retention strategies accordingly.

5. 35% — Employers Reporting Increased Workers’ Comp Claims

A 2024 survey by the National Association of Insurance Commissioners (NAIC) found that 35% of employers reported an increase in workers’ compensation claims in 2023 compared to the previous year. With workers staying in jobs longer, the risk of injury or repetitive strain may rise, especially in physically demanding industries. This data underscores the need for more robust injury prevention programs and better alignment between payroll data and claims reporting to ensure accurate insurance premium calculations.

What This Means for Employers

The shift in the quit rate isn’t just a blip—it reflects a broader trend in the labor market. For HR and business leaders, the implications are both opportunities and challenges. First, with fewer people quitting, there is less pressure to constantly recruit and onboard new hires. This can reduce turnover costs, which the Society for Human Resource Management (SHRM) estimates can be as high as 150% of a position’s salary. However, it also means that retaining talent is now more competitive than ever. Employers must focus on cultivating a positive workplace culture, offering meaningful career development, and ensuring fair compensation and benefits. From an insurance standpoint, a more stable workforce can lead to more predictable workers’ compensation claims. Employers with longer tenures may see a more accurate reflection of their risk profile, which can translate into more stable insurance premiums over time. That said, if claims are increasing due to injury patterns tied to job longevity, businesses must be proactive in identifying and addressing these risks. Payroll departments also face a dual challenge: managing the administrative complexity of a more diverse and longer-tenured workforce, while ensuring that all compensation, benefits, and compliance data is accurate and up to date. Missteps in payroll can lead to compliance issues that ripple into workers’ compensation reporting and insurance audits.

Comparing Industries

To illustrate the variance in these trends, consider the following comparison across three industries: Each industry must tailor its approach to employee retention and risk management accordingly. For example, while healthcare and manufacturing may benefit from cross-training and job rotation to reduce injury risk, retail may need to focus more on recruitment and onboarding efficiency.

Looking Ahead

The decline in the quit rate is a clear signal that the labor market is evolving. For businesses, this means a need to recalibrate their strategies in HR, insurance, and payroll. Employers must balance the cost of retaining talent with the need to maintain a productive and healthy workforce. With workers staying in roles longer, the onus is on companies to ensure that their policies and practices are not only compliant but also sustainable over the long term. Ultimately, the key to navigating this new phase of the labor market lies in data. By closely monitoring quit rates, claims data, and workforce trends, employers can make informed decisions that protect their bottom line and foster a resilient, motivated workforce.