The Labor Leverage Ratio (LLR) is the number of quits divided by the number of discharges, firings, and layoffs initiated by employers.

Data from the BLS, the Labor Leverage Ratio (LLR) is defined as Quits / (Layoffs + Discharges)

The BLS comments “the quits rate can serve as a measure of workers’ willingness or ability to leave jobs.”

The LLR is a refinement to the quits rate.

There is almost no difference between the Private LLR and Nonfarm LLR as the chart shows. Nonfarm includes military and pubic service workers in nonfarm occupations.

Labor Leverage Ratio Nonfarm and Private

This data series only dates to December of 2000.

LLR drops in recessions. Few workers want to quit in search of greener pastures.

Labor Leverage Ratios Select Services and Months

For more on the latest Job Openings and Labor Turnover Summary JOLTS report please see Job Openings and Quits are in a Steep Plunge. The Fed Will Be Pleased.

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