What is Great Resignation
The Great Resignation is an economic trend that started in 2021, which primarily involved people voluntarily leaving their jobs. Some of the factors that triggered it were the rising cost of living and the COVID-19 pandemic.
Economy Background
In the years preceding the pandemic, the US’ monthly resignation rate never exceeded 2.4%. This indicates that workers are confident in their abilities to secure higher-paid jobs.
During times of high unemployment, the rate of resignations tends to decrease. During the Great Recession, the rate of resignations decreased from 2.9% to 1.3%.
And during the first few months of the COVID-19 pandemic, the resignation rate in the US fell to a seven-year low of 1.6%. Many workers (mostly women), who worked in industries affected by lockdown, were laid off during the pandemic.
Causes of Great Resignation
The COVID-19 pandemic enabled workers to reorient their careers and goals. This gave birth to the Great Resignation. This phenomenon was the reason why almost half of the respondents in Bankrate’s study wanted to find a new job in 2021.
Many people also felt that they needed to improve their work-life balance due to the pandemic. In addition, many of them suffered from long-term disability due to the disease.
The stimulus payments and higher unemployment benefits provided temporary relief to people who rely on low-wage jobs. However, many workers were dissatisfied with their jobs and could not find a new one.
Despite the rise in competition, many workers still cannot leave their current jobs. A study revealed that an increasing number of people leaving their jobs belonged Generation Z and Millennials. Quite clearly, the younger generation had the highest rate of dissatisfaction.
Another study revealed that the racial minority and low-wage workers were more dissatisfied with their work and are major drivers of the great resignation movement.
The impact of the pandemic on women was also noted as one of the factors that led to the decline in employment in the US. According to a study, the resignation rate of workers aged 60 to 70 years old decreased by about 10% in 2020 compared to the previous year.
United States
In April 2021, it was reported that the number of Americans who quit their jobs reached a record high. In June, about 3.9 million people left their jobs due to the COVID-19 pandemic. The South experienced the highest rate of resignation at 3.3%.
In October 2021, the Bureau of Labor Statistics stated that the number of foodservice workers who quit their jobs increased to 6.8%, which is higher than the industry average of 4.1% in the last 20 years.
In 2021, over 40% of the global workforce stated that they were considering leaving their jobs and 65% of the employees stated that they were looking for a job. A lack of skilled workers is one of the biggest challenges facing companies.
In October, hundreds of thousands of American workers started a strike wave known as Striketober. It was triggered by the Great Resignation.
In December, the average wage growth in the US reached 4.5%, which was the highest since 2001. Companies like McDonald’s even offered better benefits, such as healthcare and college scholarships.
Europe
A survey conducted by HR company SD Worx revealed that the number of people who resigned due to the COVID-19 pandemic was highest in Germany.
Australia
In Australia, the number of people leaving their jobs has significantly increased. Salaries in the tech industry have also increased.
China
In China, a similar social protest movement called tang ping started in April 2021. Participants in the movement do not want to work anymore and are indifferent to the beatings they receive from society.
India
In India, the information technology industry saw a massive decline in employees.
Final Thoughts
The most important thing you could do is to prepare yourself and take advantage of the great opportunities in front of you.