Workers are leaving service roles more than any other sector
Employee turnover varies widely across industries, but one sector clearly stands out. The chart tracks annual quits rates across major U.S. industries from 2021 to 2025.
The main pattern is consistent. Hospitality related roles record the highest quits rates every year, even as overall turnover declines after 2022.
Hospitality leads by a wide margin
Accommodation and food services peaks at 5.8% in both 2021 and 2022, the highest level in the chart. It then declines to 5.0% in 2023 and further to 4.1% in 2024, before slightly rising to 4.2% in 2025.
Leisure and hospitality follows a similar path, starting at 5.5% in 2021 and settling at 3.9% by 2025. Despite the drop, it consistently remains among the highest across all industries.
At the opposite end, government roles show the lowest turnover, staying around 0.8% to 1.0% throughout the entire period. This highlights a major gap between public sector stability and private sector churn.
Mid-range industries show gradual declines
Retail trade begins relatively high at 4.2% in 2021, then steadily declines to 2.6% by 2025. Professional and business services follow a similar downward trend, moving from 3.4% to 2.3%.
Manufacturing remains more stable, decreasing from 2.4% to 1.4% over the same period. Information jobs stay even lower, hovering between 1.3% and 1.8%, indicating relatively strong retention.
Across most industries, the trend is clear. Quits rates peaked early and have gradually cooled.
Why hospitality sees the most turnover
The consistently high quits rates in hospitality reflect the nature of the work. These roles often involve lower wages, irregular schedules, and higher physical or emotional demands.
Because of this, workers are more likely to switch jobs frequently, especially when alternative opportunities become available. The post pandemic labor market also increased mobility, making it easier for workers to leave.
In contrast, sectors like government and information offer more stability, benefits, and structured career paths, which reduce turnover.
What this means for the labor market
The data shows that while overall quits are declining, structural differences between industries remain strong. Hospitality continues to face persistent retention challenges.
For workers, this means higher flexibility but also less stability in service sector jobs. For employers, especially in hospitality, improving wages and working conditions may be necessary to reduce turnover.
The broader takeaway is clear. Not all jobs experience the labor market the same way, and industry matters significantly when it comes to employee retention.
Dataset
Data Sources
U.S. Bureau of Labor Statistics. (2025). Job Openings and Labor Turnover Survey (JOLTS). Quits Rate by Industry. https://www.bls.gov/jlt/
