New York saw a surge in people quitting their jobs this year compared to the same time last year, new data from the Department of Labor Department showed.
As of July, 1,152,000 New Yorkers had quit their jobs compared to 1,108,000 last year, a percentage increase of 1.67 after last year’s rise of 1.38 percent. Altogether, more than 40,000 additional New Yorkers resigned from their jobs this year compared to last at the same time.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said a mixture of factors caused the uptick in employees quitting.
An exterior view of the New York Stock Exchange on September 18 in New York City. New York saw a surge in employees quitting their jobs this year.
Stephanie Keith/Getty Images
“Some businesses that experienced layoffs earlier in the year are left with employees overwhelmed with additional responsibilities and not always being compensated for those, making them want to head for the exit of their employer,” Beene told Newsweek. “The cost of living, elevated further by inflation, has also made some seek other employment options, feeling they need more pay.”
New York has particularly felt the heat in the public and private services sectors, said Kevin Thompson, a finance expert and founder and CEO of 9i Capital Group.
While higher quit levels generally indicate workers are more comfortable navigating the job market, they also signify a larger recovery from COVID-19 when there were major job losses in the early months of the pandemic.
There can be a dark side of the quit rates, though. When costs, particularly for child care, become too high, many parents are forced to leave the workforce.
“This trend suggests that many workers are seeking higher-paying opportunities or are being forced out of the workforce due to rising costs, such as child care,” Thompson told Newsweek. “Families in New York, a notoriously high-cost state, face the difficult decision of maintaining dual-income households or having one parent stay home to care for their children, leading to increased resignations.”
A recent Cost of Care report from Care.com discovered 47 percent of parents spend up to $18,000 a year on their child care expenses, while 20 percent of parents indicated they spend more than $36,000 a year. That’s more than one year of tuition and room and board at a public university, which averaged $24,030 for the 2023-2024 school year.
“While politicians often call for bringing jobs back to America, they may overlook the fact that many of these jobs are in sectors where wages aren’t enough to cover the rising cost of living,” Thompson said.
“Additionally, jobs outsourced overseas were often sent away to reduce the cost of goods and services, and the lower wages offered in these sectors are contributing to worker dissatisfaction.”
Bryan Driscoll, an HR consultant, said the higher quit rates reflect the cost of living within the state but also the surge in return-to-office mandates by employers.
“Workers are done with the high costs of living and the lack of flexibility, and they’re seeking out places that actually value their well-being,” Driscoll told Newsweek. “New York City has had several years in a row now of population decrease. If workers are going to be forced into an office, something not every worker is accepting, it’s clear they’re deciding to live elsewhere for less money and stress.”
Many realize they can achieve a better quality of life elsewhere with cheaper housing and remote work options, Driscoll said.
“Companies that aren’t recognizing this shift are going to lose talent to regions where workers are prioritized over corporate policies,” Driscoll said, adding that there will be ripple effects on the labor market.
“Companies are going to have to evolve or face mass exits. The era of workers’ butts in seats is over and the economy will reflect it.”
