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Good News for Some of Us: Other People are Quitting Jobs

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In this Jan. 29, 2015 file photo, Tyler Kelly, 19,  left, fills out applications for parking enforcement and environmental compliance jobs during a public safety job fair at City Hall in Saginaw, Mich. The  Labor Department releases job openings and labor turnover survey for January on Tuesday, March 10, 2015.  (AP Photo/The Saginaw News, David C. Bristow)

In this Jan. 29, 2015 file photo, Tyler Kelly, 19, left, fills out applications for parking enforcement and environmental compliance jobs during a public safety job fair at City Hall in Saginaw, Mich. The Labor Department releases job openings and labor turnover survey for January on Tuesday, March 10, 2015. (AP Photo/The Saginaw News, David C. Bristow)

CHRISTOPHER S. RUGABER, AP Economics Writer

WASHINGTON (AP) — Quitting your job — all but unheard of during and after the Great Recession — is becoming more common again. That could mean pay raises are coming for more Americans.

The trend has already emerged in the restaurant and retail industries, where quits and pay are rising faster than in the overall economy. Workers in those industries appear to be taking advantage of rising consumer demand to seek better pay elsewhere.

Workers who quit typically do so to take higher-paying jobs. That’s why rising numbers of quits typically signal confidence in the economy and the job market. As the trend takes hold, employers are often forced to offer higher pay to hold on to their staffers or attract new ones.

The Labor Department said Tuesday that the number of people who quit jobs rose 3 percent from December to January to 2.8 million — the most in more than six years. Quits have jumped 17 percent over the past 12 months.

Since the Great Recession ended, the figure has soared. Just 1.6 million people quit their jobs in August 2009, two months after the recession officially ended. That was the fewest for any month in the 14 years that the figures have been tracked.

Quits tend to open up more jobs for the unemployed. One barrier for the jobless in a weak economy is that few workers risk quitting their jobs to take a different one, in part because new hires are often most likely to be laid off.

So most workers stay put, leaving fewer options for college graduates, people recently laid off and others seeking work.

The rising number of quits has begun to affect many larger corporations. Frank Friedman, interim CEO at the consulting and auditing firm Deloitte, says his firm’s clients, which include about 80 percent of the Fortune 500, are increasingly struggling to retain employees.

“The biggest problem for many businesses is talent retention,” Friedman said. “Wages are a critical component of it. The balance of power has changed in favor of the employee.”

Deloitte itself faces the same challenges. It’s stepping up its hiring, in part because more of its employees have left for other jobs.

The firm plans to add 24,000 people this year, including paid internships, to its staff of 72,000. That’s up from the past several years, when Deloitte typically hired 19,000 to 21,000 people, and the increase is largely to make up for more quits.

The same trend is squeezing the restaurant and hotel industries. Nearly half their workers quit last year, up from about one-third in 2010. And average hourly earnings for restaurant employees rose 3.4 percent in January compared with 12 months earlier, before adjusting for inflation. That’s much better than the national average of 2.2 percent, which was barely above inflation.

About one-third of U.S. retail workers quit last year, up from one-quarter in 2010. And pay rose 3.2 percent in January from the previous year.

Individual retailers, including Wal-Mart, the Gap, and TJX Cos., which owns T.J. Maxx and Marshalls, have announced pay raises in recent weeks

Not surprisingly, quit rates are much lower in higher-paying industries. Just 12 percent of manufacturing workers and 14.8 percent of financial services employees left work last year. The quit rate in government was just 7.7 percent.

Mark Zandi, chief economist at Moody’s Analytics, said that data from payroll processor ADP showed that workers who switched jobs in the final three months of 2014 received average pay increases of nearly 14 percent compared with their previous jobs. For those who remained in the same job for a year, pay rose an average 3.2 percent, before adjusting for inflation.

(Moody’s and ADP work together to compile measures of hiring and wages.)

For the economy as a whole, significant pay gains remain rare. Average hourly earnings rose just 2 percent in February from 12 months earlier, about the same weak pace of the past five years. Many economists expect those gains to pick up by year’s end as the U.S. unemployment rate, now 5.5 percent, falls further.

Some other data in the Labor Department’s release Tuesday:

— The number of open jobs rose 2.5 percent in January to nearly 5 million, the most in 14 years. That’s a sign that the robust hiring of the past 12 months should continue. Openings are typically followed by job gains, though many employers have been slow to fill their available jobs.

— Total hiring actually slowed in January, to fewer than 5 million, after reaching 5.2 million, a seven-year high, in December. Those figures reflect everyone hired in that month. By contrast, the job gains in the government’s monthly employment reports are a net figure: Jobs gained minus jobs lost.

— There were, on average, just 1.8 unemployed people for every open job in January. That ratio is typical of a healthy economy and down from a record high of nearly 7 to 1 in July 2009. The drop in competition for each job could nudge employers to raise pay.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Activism

OPINION: Your Voice and Vote Impact the Quality of Your Health Care

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare. 

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Rhonda M. Smith.
Rhonda M. Smith.

By Rhonda M. Smith, Special to California Black Media Partners

Shortly after last year’s election, I hopped into a Lyft and struck up a conversation with the driver. As we talked, the topic inevitably turned to politics. He confidently told me that he didn’t vote — not because he supported Donald Trump, but because he didn’t like Kamala Harris’ résumé. When I asked what exactly he didn’t like, he couldn’t specifically articulate his dislike or point to anything specific. In his words, he “just didn’t like her résumé.”

That moment really hit hard for me. As a Black woman, I’ve lived through enough election cycles to recognize how often uncertainty, misinformation, or political apathy keep people from voting, especially Black voters whose voices are historically left out of the conversation and whose health, economic security, and opportunities are directly impacted by the individual elected to office, and the legislative branches and political parties that push forth their agenda.

That conversation with the Lyft driver reflects a troubling surge in fear-driven politics across our country. We’ve seen White House executive orders gut federal programs meant to help our most vulnerable populations and policies that systematically exclude or harm Black and underserved communities.

One of the most dangerous developments we’re seeing now? Deep federal cuts are being proposed to Medicaid, the life-saving health insurance program that covers nearly 80 million lower-income individuals nationwide. That is approximately 15 million Californians and about 1 million of the state’s nearly 3 million Black Californians who are at risk of losing their healthcare.

Medicaid, called Medi-Cal in California, doesn’t just cover care. It protects individuals and families from medical debt, keeps rural hospitals open, creates jobs, and helps our communities thrive. Simply put; Medicaid is a lifeline for 1 in 5 Black Americans. For many, it’s the only thing standing between them and a medical emergency they can’t afford, especially with the skyrocketing costs of health care. The proposed cuts mean up to 7.2 million Black Americans could lose their healthcare coverage, making it harder for them to receive timely, life-saving care. Cuts to Medicaid would also result in fewer prenatal visits, delayed cancer screenings, unfilled prescriptions, and closures of community clinics. When healthcare is inaccessible or unaffordable, it doesn’t just harm individuals, it weakens entire communities and widens inequities.

The reality is Black Americans already face disproportionately higher rates of poorer health outcomes. Our life expectancy is nearly five years shorter in comparison to White Americans. Black pregnant people are 3.6 times more likely to die during pregnancy or postpartum than their white counterparts.

These policies don’t happen in a vacuum. They are determined by who holds power and who shows up to vote. Showing up amplifies our voices. Taking action and exercising our right to vote is how we express our power.

I urge you to start today. Call your representatives, on both sides of the aisle, and demand they protect Medicaid (Medi-Cal), the Affordable Care Act (Covered CA), and access to food assistance programs, maternal health resources, mental health services, and protect our basic freedoms and human rights. Stay informed, talk to your neighbors and register to vote.

About the Author

Rhonda M. Smith is the Executive Director of the California Black Health Network, a statewide nonprofit dedicated to advancing health equity for all Black Californians.

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Black History

Henry Blair, the Second African American to Obtain a Patent

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

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A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.
A sketch of one of Henry Blair’s inventions, the seed planter. Image courtesy United States Patent and Trademark Office.

By Tamara Shiloh

The debate over whether enslaved African Americans could receive U.S. Government-issued patents was still unfolding when the second African American to hold a patent, Henry Blair, received his first patent in 1834.

The first African American to receive a patent was Thomas Jennings in 1821 for his discovery of a process called dry scouring, also known as dry cleaning.

Blair was born in Glen Ross, Maryland, in 1807. He was an African American farmer who received two patents. Each patent was designed to help increase agricultural productivity.

There is very little information about his life prior to the inventions. It is known that he was a farmer who invented machines to help with planting and harvesting crops. There is no written evidence that he was a slave.

However, it is apparent that he was a businessman.

Being a successful farmer required consistent production. Blair figured out a way to increase his harvest. He did this with two inventions. His first invention was a corn planter. The planter had the same structure as a wheelbarrow, with a box to hold the seed and rakes dragging behind to cover them. This machine allowed farmers to plant their crops more economically.

Blair could not write. As a result of his illiteracy, he signed the patent with an “X”. He received his first patent for the corn planter on Oct. 14, 1834.

Two years later, taking advantage of the boost in the cotton industry, he received his second patent. This time for a cotton planter. This machine worked by splitting the ground with two shovel-like blades that were pulled along by a horse. A wheel-driven cylinder behind the blades placed seeds into the freshly plowed ground. Not only was this another economical and efficient machine. It also helped with controlling weeds and put the seeds in the ground quickly Henry Blair received his second patent on Aug. 31, 1836

During this time, the United States government passed a law that allowed patents to be granted to both free and enslaved men. However, in 1857, this law was contested by a slaveowner. He argued that slaveowners had a right to claim credit for a slave’s inventions. His argument was that since an owner’s slaves were his property, anything that a slave owned was the property of the owner also.

In 1858 the law changed, and patents were no longer given to slaves. However, the law changed again in 1871 after the Civil War. The patent law was revised to permit all American men, regardless of race, the right to patent their inventions.

Blair died in 1860.

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Bo Tefu

Gov. Newsom Highlights Record-Breaking Tourism Revenue, Warns of Economic Threats from Federal Policies

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

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iStock.
iStock.

By Bo Tefu, California Black Media

Last week, Gov. Gavin Newsom, along with the nonprofit organization Visit California, announced that tourism spending in California reached a record $157.3 billion in 2024, reinforcing the state’s status as the top travel destination in the United States.

The Governor made the announcement May 5, referencing Visit California’s 2024 Economic Impact Report, which highlights a 3% increase in tourism revenue over the previous year.

According to the report, California’s tourism sector supported 1.2 million jobs, generated $12.6 billion in state and local tax revenues, and created 24,000 new jobs in 2024.

“California dominates as a premier destination for travelers throughout the nation and around the globe,” said Newsom. “With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”

Despite the gains in tourism revenue, Visit California’s revised 2025 forecast points to a 1% decline in total visitation and a 9.2% decrease in international travel. The downturn is attributed to federal economic policy and what officials are calling an impending “Trump Slump,” caused by waning global interest in traveling to the United States.

To offset projected losses, the Governor is encouraging Californians to continue traveling within the state and has launched a new campaign aimed at Canadian travelers.

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