The Covid-19 pandemic changed the world and it is hard to underestimate its importance. It is important to learn more about its impact on the labor market. There is one term that defines the severity of the issue “The Great Resignation.” It describes the higher-than-normal quit rate of American workers in the spring as well as summer of this year as vaccination eased the severity of the Covid-19 in the U.S.
People leave their jobs for numerous reasons. Still, the biggest cause of the Great Resignation may be the sheer number of job openings combined with a lower unemployment rate. Interestingly, industries that suffered the most serious losses, such as hospitality, food service, and others had the most job openings.
Great Resignation and its importance
Now, we can discuss factors that triggered the Great Resignation. For instance, employees who wanted to leave their jobs in 2020 decided to stay until the labor market improved. Furthermore, burnout caused workers to seek more meaningful work with better work-life balance. When it comes to burnout, common symptoms include exhaustion and a sense of ineffectiveness.
Many people got used to working from home. So, when employers asked them to return to the office, some of them decided to find a new job. Besides, employer, customer, or client mistreatment during the pandemic pushed workers to leave at the first opportunity. The Covid-19 pandemic caused employees to reevaluate life priorities.
Currently, low-wage workers have the chance to earn more by changing employers. Also, many people want to live where they want instead of near their current job. In fact, they are switching employers if necessary to gain flexibility. We shouldn’t forget about values as well. More and more people are looking for a company that aligns with their values.
Due to the pandemic, many people spend more time at home and this trend affected their opinions. As a result, some people began to draw a line between what is necessary and what is not.
Americans and new opportunities
Economist Jason Furman has an interesting opinion regarding the Great Resignation. He stated that the number of people leaving their jobs was in line with expectations given the number of job openings, suggesting that the sheer volume of opportunities could be driving resignations. During the first month of summer, 3.9 million people quit their jobs.
Companies are struggling to retain employees. For example, the industries with the highest resignation rate were accommodation and food services.
Bankrate conducted a survey in July. The survey conducted by the company showed that many Americans were likely to look for a new job in the next 12 months. Notably, 77% of Gen Z-ers and 63% of Millennials plan to job hunt. Moreover, 72% of those who earn less than $30,000 per year are planning to seek a new job.
A survey conducted by Microsoft also contains interesting details about the Great Resignation. According to this survey, more than 40% of workers from different countries are likely to consider leaving their current employer in the next year. The survey mentioned above shows that employees not only in the U.S. but in other countries as well are not happy with their jobs.
Companies have the opportunity to dissuade their employees from finding another job. They should offer them more support. Companies can offer employees more accommodating world arrangements, including remote work, and flexible schedules. Moreover, they can listen to what employees say they want and need instead of making tone-deaf decisions.