This could have an impact on workers. Especially if the Federal Reserve starts cutting back on job growth and wages. It could also cause the economy to slip into a recession.
1. The Great Resignation
The Great Resignation is an ongoing economic phenomenon that involves employees leaving their jobs voluntarily at an elevated rate. The term was first coined by organizational psychologist Anthony Klotz.
It’s been estimated that between April and September 2021, a record 24 million Americans quit their jobs, an all-time high.
Workers left their jobs for a variety of reasons, including low pay, feeling disrespected, and not getting the opportunities they wanted. But it’s also possible that employees are simply reassessing the role of work in their lives.
2. More Workers Quitting
Workers have been quitting the job market at a high rate over the past year, and the trend is expected to continue. Many cite the COVID-19 pandemic as the reason behind their decision, while others have cited a lack of career advancement opportunities and low pay as the reasons for their resignations.
As of November 2021, there were more than four million quitters in the U.S., according to BLS data. This is an unprecedented level of churn in the American economy.
In order to understand whether the recent quit rate is an outlier, researchers can run regressions using the unemployment rate and the ratio of job openings to unemployed people as measures of labor market tightness. For both the linear and quadratic specifications, the results indicate that quit rates are higher when labor markets are tighter.
3. More Workers Wanting More Flexibility
A new report from AARP found that many workers – particularly older ones – want the flexibility to work flexibly with fewer hours. Whether they’re parents returning to work, carers balancing their duties, or people managing health conditions, they want a sense of autonomy in their jobs.
It’s an especially important point of difference for companies seeking to recruit and retain top talent – but not without its own challenges. It’s vital to enable autonomy and proactively normalize lifelong learning and caregiving responsibilities, regardless of gender or age.
4. More Workers Wanting Higher Compensation
As the economy continues to recover, workers are increasingly seeking higher compensation and more job security. New research by the Society for Human Resource Management (SHRM) and other studies show that employees are rating compensation/pay as their second most important contributor to job satisfaction.
The SHRM study also found that more workers are looking to recoup raises and bonuses missed during the 2008-09 recession and the years of tepid growth that followed. This may be in part because of the increasing cost of health care premiums.
More workers are also moving from one employer to another. In an average month, about half of workers who changed employers also switched their occupation. This pattern was largely unchanged from 2019 to 2021.
5. More Workers Wanting More Community
Many workers want more community at work, but a majority don’t feel they have one. It’s important to remember that a strong sense of community has a positive impact on productivity and job satisfaction. And it’s especially true for younger workers.
As the Great Resignation continues, and as employers ramp up compensation and perks to make sure they attract and retain employees, fears about job security have risen among workers around the world. But this isn’t stopping them from pursuing better ways of working. For example, a recent study found that people who enjoy a good work-life balance are more likely to stay at their jobs than those who don’t. If you’re an employer, you might want to consider implementing some new ways of working that will give your team a stronger sense of community and help them thrive at work.