Recent data from the U.S. Department of Labor reveals that more employees are staying in their current jobs, signaling a shift in the labor market.
In December 2024, voluntary quits remained steady at 3.2 million, an 11% decrease from 2023 and a 22% drop from the 2022 peak.
The cooling labor market has made job transitions more challenging. Job openings declined to 7.6 million in December, down 556,000 from the previous month and 1.3 million over the year.
Hiring rates have also slowed, The Wall Street Journal found, with 66 million hires in 2024 compared to 71 million in 2023. While healthcare and hospitality continue hiring, industries like technology and law are cutting back.
Economists attribute this shift to the Federal Reserve’s interest rate policies aimed at controlling inflation. With fewer job openings, employees are opting for stability over the risk of job-hopping.
This trend has implications for wage growth and career advancement, as job switching has historically been a primary way for workers to secure higher salaries and promotions.
While job satisfaction remains relatively high and layoffs have not spiked, fewer people quitting means fewer opportunities for internal promotions and less pressure on employers to increase wages and benefits. Experts warn that if this trend continues, it could slow overall wage growth and economic mobility.
As 2025 progresses, economists and businesses will closely watch whether the job market stabilizes or if quitting rates continue to decline, reshaping employment trends for the foreseeable future.