Is It Getting Fired If I Quit First?

The power dynamic between employer and employee has shifted over the past year… in a very big way. A year ago, employees were doing just about anything to hold onto their job as mass layoffs from the pandemic shutdown froze the economy. Today, it’s a much different story.

In today’s newly coined “Great Resignation”,  more people are quitting their jobs than in the past 20 years. By “more people”, I mean 4 million people – almost 3% of the entire US workforce. And according to Microsoft, 41% of workers are considering leaving their current gig.

What’s Happening:

There are many potential reasons this is happening now. But here are a couple:

1. People stayed in jobs they otherwise would not have because job openings were limited during the shutdown.
2. People are retiring early after watching their home value and IRA skyrocket over the past 2 years.
3. People got used to WFH and are going to companies who offer it.

Brass Tax:

There are two big forces at play that gives employees this opportunity. 1) Companies are ramping up operations to pre-covid levels which means more job openings, giving employees flexibility to bounce around. 2) Unemployment benefit extensions are going in most states through Labor Day which allows some to take the summer off work while still receiving money. When we see companies get to optimal operations and unemployment benefits cut, this will be a very different story.

The Rates:

If you have been floating, you have seen a ton of gains over the past two weeks. This morning, MBS’ broke above the triple ceiling of their 25, 50 and 100 DMA and still have more room to climb. If you can closely watch the market, pricing could get better. If you are not, lock because today is the best pricing in the past month.