N.H. ranked 41st in list of states with highest resignation rates

With 253,000 fewer Americans having quit their jobs during the latest month for which data is available (July) compared to the previous month, WalletHub today released its updated report on 2023's States with the Highest Job Resignation Rates, along with expert commentary.

WalletHub ranked the 50 states and the District of Columbia based on how frequently people are leaving their places of employment. Below, you can see highlights from the report.

To view the full report and your state's rank, please visit:
https://wallethub.com/edu/states-with-highest-job-resignation-rates/101077

Expert Commentary

What are the main factors influencing this shift in the labor force?

"The labor market continues to do well, despite talk of an impending recession. Unemployment remains at historically low levels, and employers continue to create new jobs. The only layoffs have been in niche industries that greatly expanded during the pandemic (e.g., tech, real estate). So, people have more opportunities to change employers and enter into potentially better employment arrangements. In other words, there are very real opportunities to work at employers and in jobs that are better, and people are rationally taking advantage of these opportunities."
Caitlin Porter - Associate Professor, The University of Memphis

"Typically, employees voluntarily quit jobs when they believe they have alternatives that are more attractive - such as a job that offers higher pay, higher position-status, and/or more attractive working conditions including more growth opportunities and autonomy, allowing them to have more control over work-life balance...Because the U.S. economy is experiencing the lowest rates of unemployment...in 50 years, it is not surprising that employers are reporting record-high rates of turnover. The exponentially higher number of work-from-home jobs (a persistent but hitherto denied demand by working parents and those seeking work-life balance), triggered by the onset in 2020 of the global pandemic of Covid-19, gives employees exponentially more alternatives for working from home, hence more desirable working conditions. This includes the absence of long commutes and likely more desired decision autonomy while working."
Debra L. Shapiro - Professor, University of Maryland in collaboration with Peter W. Hom - Professor, Arizona State University and Wei Shen - Professor, Arizona State University

Has remote working determined, in any way, this change in the labor force?

"Undoubtedly, remote working has played a vital role in shaping the current shift in the labor force. The emergence of remote work as a viable and widely adopted option has contributed to substantial changes in the labor landscape (the impact also extends beyond jobs that are inherently suited for remote work, such as software engineers, to a broader job spectrum surrounding them). Given huge investments in training and human capital to conduct work remotely, certain jobs could potentially remain permanently remote. However, a large portion of jobs is expected to return to in-person or at least adopt some hybrid models. Meanwhile, this return to physical workplaces will also contribute to the revival of related jobs and occupations associated with those returning workers."
Yang Liang - Assistant Professor; Assistant Director, Center for Health Economics & Policy Studies (CHEPS), San Diego State University

"Yes, for three reasons remote working has influenced employees to more frequently quit jobs. First, the exponentially higher number of work-from-home jobs, triggered by the onset in 2020 of the global pandemic of Covid-19, gives employees more alternatives for working from home and having apparently more desirable working conditions, such as the absence of long commutes and likely more desired decision autonomy while working. Second, employees generally voluntarily quit jobs when they perceive more attractive alternatives. Third, the office shutdowns necessitated by the spread of Covid-19 in 2020 gave employees whose jobs enabled them to work from home (e.g., IT support staff, educators/trainers, home-based reservation crew at JetBlue, telemedicine doctors, telemarketers, salespersons, attorneys, among others) the opportunity to work from home. Apparently, the attractiveness of this has led employees to reject jobs requiring them to return to the conventional on-site 9-5 Mondays through Fridays work schedule."
Debra L. Shapiro - Professor, University of Maryland in collaboration with Peter W. Hom - Professor, Arizona State University and Wei Shen - Professor, Arizona State University

How is the decrease in labor force participation affecting the employers?

"The decline in labor force participation has repercussions not only for employers but also for current employees. Employers may be compelled to incur higher hiring costs to fill vacant positions, or alternatively, they may experience diminished profits as a result of reduced services. Meanwhile, existing employees may find themselves burdened with longer work hours and higher levels of stress."
Yang Liang - Assistant Professor; Assistant Director, Center for Health Economics & Policy Studies (CHEPS), San Diego State University

"Any time employers lose the workers they value via voluntary turnover, they suffer consequences related to time and financial costs associated with recruiting and retraining replacements. These costs can exceed 100% of the annual salary for the position being filled. Besides these costs, turnover can disrupt production and undermine customer service, decreasing firm performance. Moreover, exiting employees may join competing firms, taking valuable human capital and proprietary secrets with them. The departure of minorities and women can also undermine progress toward a more diversified workforce. In addition to these costs, there are expenses associated with keeping retained employees continually satisfied - especially when they compare their treatment to that of newly hired employees who may receive higher pay and/or more flexible work-from-home arrangements to attract them. If employers treat new hires better than their long-term employees, this creates perceptions of inequity (unfairness) among the workforce, which typically leads to more voluntary turnover."
Debra L. Shapiro - Professor, University of Maryland in collaboration with Peter W. Hom - Professor, Arizona State University and Wei Shen - Professor, Arizona State University