Quitting a job often can be a good thing. But not enough workers have been doing it.
During and after the recession, the U.S. economy has been too weak for many workers to undertake the sort of job-hopping that economists say is critical to building careers and advancing the nation’s long-run growth prospects. The consequence: Even many Americans who have remained employed have stunted their earnings growth by staying pinned down to their current jobs.
The weak job churn is among Federal Reserve Chairwoman Janet Yellen’s leading concerns about an economy that is improving steadily, but with substantial scars just beneath the surface.
Ms. Yellen, who is set to deliver the Fed’s semiannual report to Congress on Tuesday and Wednesday, regularly highlights her concerns about the lack of dynamism in the labor market. “People are reluctant to risk leaving their jobs because they worry that it will be hard to find another,” she said earlier this year.