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“Private sector labor market flows provide additional indications of the strength of the labor market. For example, the quits rate has tended to be pro-cyclical, since more workers voluntarily quit their jobs when they are more confident about their ability to find new ones and when firms are…” quote by Janet Yellen
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“Private sector labor market flows provide additional indications of the strength of the labor market. For example, the quits rate has tended to be pro-cyclical, since more workers voluntarily quit their jobs when they are more confident about their ability to find new ones and when firms are competing more actively for new hires.”

Janet Yellen

About This Quote

Source Speech: Economic Outlook Remarks, U.S. Treasury, 2023

Labor market health can be gauged by voluntary quits, which rise when workers feel confident about finding new jobs and when firms compete for talent.

In simple terms: Quits signal confidence and a strong job market.

Key Takeaway

Watch quit rates as a confidence gauge.

Themes

labor economics confidence indicators job market dynamics

Mood

analytical informative

Type

economic policy

When to use this quote

  • career planning
  • recruiting strategies
  • policy analysis
  • personal finance

Key Concepts

macroeconomics human capital

Questions to Reflect On

  • How do you interpret a rising quit rate?
  • What policies could reduce unnecessary turnover?
A Different Perspective

Quits can also reflect job dissatisfaction, not just confidence.

4.9 out of 5 (7 ratings)

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