Labor Leverage Ratio

The Labor Leverage Ratio is a measure of worker versus employer bargaining power developed by Aaron Sojourner, a senior researcher with the Upjohn Institute. The ratio is built as the ratio of seasonally adjusted quits initiated by workers over the seasonally adjusted layoffs and discharges initiated by employers.

While many people look to the quit rate alone to measure worker power, the Labor Leverage Ratio's pairing of the quit rate with firings and layoffs offers more insight into the broader economy.