Labor Turnover Survey Results: Keeping Pressure on the Manufacturing Industry

  • john-hindman
    John Hindman
July 30, 2026 4 min read

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Manufacturing labor turnover has changed significantly over the past decade. While voluntary quit rates have declined from their post-pandemic peak, workforce turnover remains well above historical levels, continuing to drive hiring costs, extend time to proficiency, and challenge workforce planning. 

According to the U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS), voluntary turnover in manufacturing increased by 60% between 2014 and 2021 as strong labor demand, wage competition, retirements, and post-pandemic workforce shifts accelerated employee movement. Although labor market conditions in 2026 have since stabilized, manufacturers continue to face persistent workforce challenges driven by demographic retirements, absenteeism, skilled labor shortages, and competition for experienced technical talent. 

Manufacturing Quit Rates: A Decade of Change 

The manufacturing quit rate rose steadily through the pandemic before returning to levels similar to those seen before 2020. 

Year Annual Average Quit Rate Change from 2014
2014 1.5% Baseline
2021 2.4% +60%
2022 2.3%  +53%
2024 1.6% +7%
2025 1.4% -7%
April 2026 1.3% -13%


While quit rates have normalized, overall workforce movement remains elevated. 

Manufacturing Turnover Remains Historically High 

Today's manufacturing workforce continues to experience significantly more employee movement than it did a decade ago. 

Year Estimated Annual Manufacturing Turnover
2014 ~20%–22%
2019 ~24%–26%
2021 ~35%–40%
2022 ~38%–42%
2025–2026 ~30%–35%


Current labor market data indicates:

Metric Current Level
Monthly Quit Rate ~1.3%
Monthly Total Separation Rate ~2.6%–2.8%
Estimated Annual Workforce Turnover ~30%–35%


Although fewer employees are voluntarily leaving their employers than during the peak of the labor shortage, manufacturers continue to experience substantial workforce movement from retirements, internal transfers, involuntary separations, and ongoing hiring activity. 

Why Workforce Turnover Still Matters 

Many manufacturers report that they are "hiring all year just to stay even." For a manufacturing facility with 500 employees: 

  • A 30% annual turnover rate requires replacing approximately 150 employees each year. 
  • A 35% annual turnover rate requires replacing approximately 175 employees each year. 

The operational impact extends well beyond recruiting. Manufacturers continue to experience: 

  • Increased onboarding and training costs 
  • Product quality variability and throughput challenges  
  • Higher investment in employee retention and career progression 
  • Continued pressure from retirements among maintenance technicians, operators, and production supervisors 
  • Ongoing competition for experienced technical talent 

As a result, many manufacturers now plan for 25%–35% annual turnover in production roles and 10%–20% turnover in skilled technical positions, depending on regional labor market conditions and wage competitiveness. 

The Financial Impact of Hiring 

Replacing employees carries significant direct costs before productivity losses are considered. 

Position Typical Cost per Hire
Entry-Level Production Operator $3,000–$6,000
Process Technician $5,000–$10,000
Maintenance Technician $8,000–$20,000+
Production Supervisor $10,000–$25,000+


Example: A 500-Person Manufacturing Facility
 

Assume a facility has: 

  • 500 employees 
  • 30% annual turnover 
  • An average hiring cost of $5,000 per employee 

That organization would need to hire approximately 150 employees annually, resulting in $750,000 in annual hiring costs before considering lost productivity, overtime, reduced production capacity, or quality impacts. 

The Hidden Cost: Time to Proficiency 

Recruiting and hiring represent only part of the total workforce investment. One of the largest costs is the time required for new employees to achieve full productivity. 

Role Typical Time to Full Productivity
Production Operator 1–3 months
Process Technician 3–6 months
Maintenance Technician 6–12 months
Automation Technician 9–18 months


Longer times to proficiency can affect production throughput, quality, safety, maintenance performance, and workforce flexibility. Organizations that standardize onboarding, implement structured qualification programs, and invest in continuous workforce development are often better positioned to reduce these impacts. 

Looking Ahead 

Although manufacturing quit rates have returned to levels similar to those seen before the pandemic, workforce turnover remains significantly higher than it was a decade ago. Hiring costs, retirements, skill shortages, and extended learning curves continue to create operational challenges across the industry. 

Manufacturers that proactively invest in workforce planning, structured training, career development, and employee retention strategies will be better positioned to improve productivity, accelerate time to proficiency, and build a resilient workforce for the future. 

For manufacturers facing persistent turnover, Talent & Workforce Services manufacturing consulting can help assess workforce gaps, standardize training pathways, and build scalable development programs that improve retention and reduce time to proficiency. 

Source: U.S. Bureau of Labor Statistics (BLS), Job Openings and Labor Turnover Survey (JOLTS).  

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  • john-hindman
    John Hindman
    Director, Talent and Workforce Services / Tooling U-SME