In a modern world, more than 98% of us need jobs. For the longest time, the bosses and employers have had more power than we have, which has made it hard for us to make money. But in the last two years, there has been something interesting. A January 2022 report from the US government said that over 20 million people left their jobs in the second half of 2021 alone. This is a worldwide movement. Employees are leaving their jobs at an all-time high. So many people are leaving their jobs that it has a name, the Great Resignation, and it’s a phenomenon that sends a clear message from the workers of the world.
Employers Beware. We know what we’re worth.
So let’s look into what’s caused this change, how the world has responded, and what it could mean for the next few years.
What Caused This Change?
For many people, this pandemic gave them a chance to think about their lives, careers, priorities, and where they fit in the local and global economy. I came up with some personal realizations during this time of reflection, which may affect the economy in a bigger way than you think!
Mass resignation was not the first thing the labor force did when the pandemic started. People who had steady jobs held on to them for dear life in the first few months of 2020. Resignations in the United States went down from 2.2% to 1.6% because of the huge amount of uncertainty in the country.
People thought COVID-19 and everything that came with it was going away soon, but soon the world realized that COVID-19 and everything that came with it wasn’t going anywhere soon.
At this point in 2020, resignation rates would be the same as they were in June of this year. Once in 2021. As the year went on, it became clear that something had changed.
There were more Americans who quit jobs than there had been for two decades in August of 2021. This was 2.9 percent more than it had been for 20 years. This was more than 4 million US citizens leaving their jobs. By November, these records were broken again, and 4.5 million more people quit. It’s thought that almost 50 million people would have given up smoking during the year. This was a global movement, too.
According to Microsoft’s 2021 Work trend index, more than 40% of the world’s workers are thinking about quitting. Across the world. It looks like the same things happen in countries like Belgium and France. All of them are seeing a rise in resignations. That isn’t true, though. Germany has had the most people leave work, with an estimated 6% of its workforce.
During the same time, in China, we saw the “laying flat protests,” which were a protest against being too busy. India has also seen a lot of people leave their jobs, especially in the IT field. And there have been very few protests in Australia about fair wages.
Who is Quitting?
People aren’t happy and want a better deal, but not all fields are seeing the same thing. During the heat of the pandemic, people are more likely to give up because they are afraid of getting sick. But as time goes on, low wages in the face of rising prices and general mistreatment seem to be the main reasons.
The service industry is the one that has to deal with both of these problems the most. People who work in places like hotels, restaurants, and stores have had more resignations this year than anyone else.
Why Are They Quitting
People who study the economy, like Peter Schiff, think that government subsidies played a role in the pandemic at the start of the epidemic. More than half of all US workers were getting more money from government pandemic relief funds than they were from their jobs, according to the Wall Street Journal, which said this. So why would anyone choose to work for less money than they could get if they didn’t?
Several people say that saving the American economy was a necessary step. They say there was more play. Workers didn’t rush back to work when these benefits were turned off. Instead, they stayed home. Tell me what it says.
That tells me that it’s not just because of the benefits that it’s going to happen. That’s not the only thing that workers think about when they figure out how much money they should make. Is it worth it? Well, I go back to work. What job will I do?
To keep business, as usual, the fastest and safest thing for the company to do was to let their staff work from home. Zoom meetings and home offices were originally meant to be a short-term solution to safety problems. COVID had other ideas.
With no end in sight to the restrictions and site of the pandemic, the months turned into years. With the new remote working conditions, some people felt more confident, more capable, and happier than before. Employees say they’ve been happy with the lack of oversight and micromanagement, and not having to drive to and from work, every day has given them more time to spend with their families, exercise, or do other things they enjoy.
Before the pandemic, about one in every 67 jobs in the United States were done from home. It’s now about one in seven. You shouldn’t be surprised by this. This isn’t a big surprise. Many capital cities are wondering what to do with all the empty commercial space.
In the end, COVID-caused burnout is the last industry-related factor. This has mostly affected the fields of technology and healthcare. Both have seen a big rise in resignations during the pandemic. For good reason.
It’s not a secret that healthcare workers were under a lot of stress every day. Hospital overcrowding and the nature of the virus have caused more work to be done. There were a lot of staff shortages because of sick leave. And for many nurses, doctors, and other people who work there, this pressure was too much for them to handle. This led to a 4.5x rise in resignations in the health care field over the last year. All of this, on top of that, some people didn’t like the vaccine rules. I decided to quit because of this.
re are also things outside of the industry that plays a role, like how old you are and how far your career has gone. Those between the ages of 30 and 45 are the group most likely to quit their jobs, according to the US Bureau of Labor Statistics. Staff turnover rates are highest among people who are 20 to 25 years old, but this is because younger people are more likely to be financially insecure. In recent years, that group’s demographics have changed a little.
It’s also been said that for some people in the 30 to 45-year-old age group, COVID was the last push they needed to quit their jobs.
Employees Are Getting Desperate
With waves of resignation letters coming to the desks of employers, there were going to be a lot of labor shortages. Until now. There aren’t many businesses in the service industry that don’t have “Help Wanted” signs on their front doors.
First, people talked about welfare and laziness. Employees thought that staff would come to their senses and this would all be over soon. It did not.
This is an example of how people’s attitudes have changed: The number of people who follow and use the Reddit forum r/antiwork has grown. The Forum is a place where people can talk about bad working conditions, expose companies that aren’t being fair, and talk about other ways to work.
There were 180,000 people who liked the page in October of 2020. Today, that number is almost 1.8 million. Some news outlets, like the New York Post, have even said that the anti-work subreddit is partly to blame for the high number of people who quit their jobs.
There have been some weird consequences for schools in the US because they don’t have enough staff. The National Guard has been sent to some schools, and some people have been told to drive school buses and teach in classrooms, which is a little weird.
Across the world, there is a shortage of workers. Some people are desperate, and they’re offering weird things to get people to work for them. A lot of companies are giving money to people who make it to the interview stage. Like one Frankfurt-based tech company, which is giving €500 to anyone who shows up for interviews and is willing to work. People who make it through to the second round get another €1,000. €5000 will also be given to those who have been on probation for six months and finish it. Companies in the United States say they will pay for college tuition and textbooks for new employees who also want to go to school. Target and other companies say they will do this.
McDonald’s said in 2021 that it was going to raise wages by 10% to deal with a shortage of workers. It was just for McDonald’s stores, not the many franchised restaurants that make up the majority of the restaurants. When that didn’t work, I tried something else. Some McDonald’s stores in the United States were giving new employees a free iPhone if they worked for the company for more than six months. Other employees have been forced to add more benefits, like more flexible work schedules, mental health programs, and in some cases, a long-term rise in wages.
In the end, only time will tell how long the power shift will last. Some people say that the great resignation will change a little bit in the future. The great resignation will be more like a great reshuffle and it will be good for the economy because people can move up the class ladder when they switch jobs. Some economists think that course correction is coming. People who work in low-wage industries may not know how COVID restrictions will affect their jobs and relationships with their employers. Minimum wage increases are always up for debate. Even though there was a lot more of a spike in the pandemic, there haven’t been any long-term changes in the market, and inflation is also rising in the United States as well. A wage-price rise could also happen. For now, we’ll have to wait and see. As the world adapts to life after COVID, billionaires keep building rockets for fun, even though they don’t make money from it. The public’s understanding of class differences will only get better. It’s because of this. I guess that the way many businesses hire and keep employees and the way people look for and accept work may have changed for good.