Texas has the 19th highest job resignation rate, indicating that workers are quitting their jobs more in the Lone Star state than in most other states, according to a new WalletHub study.
The 2022 WalletHub study found that for January 2022, which is the most recent data, the resignation rate in Texas was 3.10%, and the average resignation rate from February 2021 to January 2022 was 2.98%.
“When the pandemic hit, many of those who were close to retirement retired early and left a lot of positions open,” said Jill Gonzalez, an analyst with the WalletHub study. “Then, during the pandemic and lockdown period, people started working from home and re-evaluated their priorities. Those who are dissatisfied with their jobs now have plenty of options to choose from due to the imbalance between supply and demand in the labor market. This gives them leverage and causes them to resign.”
According to Gonzalez, the high 3.10% resignation rate shows that demand is currently higher than supply in the labor market.
“This could have a positive effect on the state’s economy because it can trigger an increase in wages,” she said. “On the downside, prices are also on the rise and inflation is very high.”
Even wages for menial jobs are rising to new levels, according to Michael D. Noel, a professor in the economics department at Texas Tech University.
“Some fast-food restaurants have been offering triple the minimum wage for what has normally been close to a minimum wage job historically,” he said.
The WalletHub study also found that Alaska landed the top spot with the highest resignation rate at 3.50%.
“A high resignation rate is an indication of a surge in job openings,” Gonzalez told The Dallas Express. “The advantage to having more job openings is that job applicants have a lot of leverage and can negotiate better terms for themselves. At the same time, employers are offering more incentives for changing jobs.”
According to the data, at No. 51, New York had the lowest job resignation rate.
“The fact that New York has the lowest job resignation rate could be an indication of a higher job satisfaction rate and more possibilities for remote work,” Gonzalez said in an interview. “The possibility for remote work or having a hybrid schedule could increase the job satisfaction rate in Texas and lower the resignation rate.”
WalletHub further found that the pandemic is playing a role in the resignation rate.
“The fact that people have successfully worked from home during the pandemic is what triggered these high resignation rates,” Gonzalez added. “People are reluctant to go back to the office full time, and employers that are imposing this are seeing higher resignation rates.”
With many employers shifting to part-time or full-time remote work, Professor Noel said the need for large commercial office spaces, workers to commute long distances, and concerns about caring for children have changed.
“Having a remote working environment as an option or as a part-time plan — while it has clear drawbacks — can help the labor force recover more quickly in these kinds of situations,” he added.