If you’ve heard the phrase, “The Great Resignation” then you know what our blog post will be about this week. The workforce has taken a hit not only with COVID-19 but with workers voluntarily resigning at a high rate. With new data being released, it’s evident this is something that needs to be on everyone’s radar, especially employers.
New data was released by the Labor Department last week and it showed workers voluntarily leaving their jobs reached an all-time high in September.
According to an article by The Hill, “roughly 4.4 million U.S. workers quit their jobs in September and the ‘quits rate’ rose to 3 percent, according to the latest edition of the Job Openings and Labor Turnover (JOLTS) survey, each a new record.”
With these high resignation numbers, of course, economists are wondering the reasons behind it. With workers looking for higher pay and better personal fulfillment, it’s been interesting to see which sectors are being hit the most. Nick Bunker, an economic research director at Indeed, said, “quits are up the most in sectors where most work is in-person or relatively low paying.”
We’re seeing The Great Resignation giving an edge to job seekers/workers which raises many questions for the future of the workforce. Researchers aren’t quite sure about the long-term effects of a smaller workforce yet but with the current staff shortages and supply chain overload, it will be eye-opening. Out of desperation for staff, employers are increasing compensation which has been drawing in workers to get back into the workforce but it’s still a tight labor market.
There is still lots of research to do on how The Great Resignation is affecting the economy, employers, and businesses. Keep on the lookout for new data to stay informed!