Sunday, September 25, 2016
Why Falling Employee Tenure Could Be Good News About the U.S. Economy
In January, the Labor Department announced the first decline in the median employee tenure since 2000. Median employee tenure is the average time a worker has been with his or her current employer. The number dropped from 4.6 years in January 2014 to 4.2 this year across all age groups and for both genders in most industries. Some believe the US labor market is in good health due to the fact that people are accumulating less seniority in their jobs and many are voluntarily quitting their positions to look for new and better ones. However, the Labor Department stated that the drop is not something to get too excited about yet because the figure may significantly increase or decrease depending on the strength of the economy. This decline is partnered with the two strongest years of job creation, 2014 and 2015, since 1998 and 1999. The future of the median employee tenure is unknown, but all are curious what the next figure will be.
http://blogs.wsj.com/economics/2016/09/22/why-falling-employee-tenure-could-be-good-news-about-the-u-s-economy/
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Hopefully this employee tenure continues to shift in our favor. I feel like being in college and being so close to graduating it is important to understand the job market and unemployment figures to know what you are getting yourself into. When coming out of college cementing your position in a company is definitely important but I would assume that most people would jump on the opportunity for a new and better job opportunity if it was handed to them. And this number shows that it is definitely happen in our job markets as we speak.
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