Economics & Finance / Macroeconomics / Unemployment & Labor Markets

Why 60% of Construction Workers Quit Every Year (And Why It's a Good Thing)

Nathan Chappell, Adam B. Jaffe, Trinh Le

Most people think high worker turnover destroys productivity. But a groundbreaking study on New Zealand's construction industry reveals the exact opposite: massive job churn is actually the secret to growth. Using 10 years of data, researchers Nathan Chappell, Adam B. Jaffe, and Trinh Le found that new firms are 7% more efficient than old ones, and hiring from high-productivity rivals boosts your own output by 0.6%. This video breaks down the 'creative destruction' cycle, why failing firms lose 13% productivity before dying, and how knowledge flows through workers—not just machines. If you run a business or study economics, this will change how you think about labor mobility.