Impacts of objective and subjective labour market conditions on employee turnover

To understand the impacts of objective and perceived labour market conditions on employee turnover, interview data from a nationwide sample of young workers were examined. Contrary to findings obtained in studies investigating the relationship between aggregate turnover rate and economic conditions, the situation in the objective labour market was found to have no effect on the withdrawal process on an individual level. Neither did it affect individual job satisfaction. However, subjective perception of alternative employment opportunities, as well as job satisfaction and withdrawal intention, were predictive of voluntary termination during the subsequent year. Reasons for the discrepancy are discussed.