As economic conditions worsen, inflation soars and a recession looms, many workers who quit and retired early as part of the great resignation are now seemingly having second thoughts about leaving their jobs sooner than planned.
According to a Bloomberg report, nearly 20 million Americans who quit their jobs in the last six months now regret the decision.
More than one-quarter of those who left work are reconsidering whether they made the right move. Especially as the cost of living increase and news of a tightening job market makes finding ones “dream job” harder.
Where do you stand?
The Great Resignation
The Great Resignation – a term coined by the media and financial markets alike to indicate one of the largest employment resignations in the history of the United States.
This term is thrown around more and more often as it becomes increasingly evident that a large part of the American populace is unsatisfied with their career and employer.
The BLS confirmed that the great resignation was indeed a real trend where levels and rates of quits during the pandemic (up to January 2022) were statistically different from those seen in the Great Recession and Dot com bust.
Organizations need to reimagine work and redesign the workplace to accommodate the post-pandemic employee in a way that meets their risk management and performance objectives.BLS
How are companies handling this catastrophic event, and what does it mean for financial markets?
According to a recent poll by Bankrate, 55% of workers plan to search for a new job in the next year. And a whopping 56% stated the primary reason for leaving their current job is due to a desire for more flexible hours and the ability to work remotely.
Meaning, that these 4.3 million workers who left their job in August are not simply seeking better pay, but also for work that allows them to live a more comfortable and flexible life.
And of these 4.3 million workers who left traditional offices, a large majority came from the Southern States: Georgia, Kentucky, and Idaho. The greatest number of resignees originated from Georgia with 35,000 workers turning in their resignation notices since the start of August.
With 10.4 million job openings across the continental United States, are workers ready to take these job offers? Or will these millions of job openings remain exactly that—open for good?
If the company owner or corporate investor wants to see these numbers go down, there is going to have to be a real hard talk around why Americans no longer want to work. And what corporate policy changes will need to be enacted in order to combat this “Great Resignation” that is plaguing the United States.
How to Survive the Great Resignation
For those who find themselves amongst the white-collar working class, surviving the Great Resignation is more of a long-overdue vacation to focus on the self and how to better their professional self.
And for entrepreneurs, taking time off to refocus and recalibrate their engine is exactly what so many need. With investments in real estate, the stock market, cryptocurrency and savings accounts, white-collar workers can leverage a plethora of their investments to get by until they find what they truly want to devote this period of their lives to.
But for those blue-collar workers or service industry professionals who make up the majority of the “Great Resigners,” relying on savings simply is not an option. So how are they doing it? How are they paying for rent and childcare?
The answer is not a luxurious one.
Simply put, blue-collar workers are surviving by any means necessary. In most cases, workers qualify for unemployment benefits or social security, and a large part of them have even gone into retirement early.
Another group of resignees is also tapping into their 401(k), Social Security, and family savings, with a large portion of them stating that they no longer have to pay for gas to get to work, for shoes, office clothes, and meals that typically drained their income pre-Covid.
Will the Great Resignation Last?
Will this Great Resignation last, or is it just a passing tide? Analysts and financial advisors are stuck in the mud with the predictions for this resignation event, partly due to the chaotic and volatile job market that ebb and flow with pandemic restrictions.
As the Delta variant makes its way through the United States, some analysts predict that unemployment numbers will rise through 2022 and curtail by 2023 (although the overall sentiment is highly dependent on vaccine rollouts in both developing and developed countries).
Looking Forward to 2022 & 2023
As 2021 comes to a close, investors are looking for any signs of optimism in 2022 and 2023, and they might just be in luck. With 44% of Gen X looking to start new positions in the next year, companies may be flooded with an onslaught of college-educated young professionals. This could signal a sort of awakening in the tech and finance sectors who typically recruit young and straight-out-of-college workers.
And as financial markets continue to play well and ride the overall bull trend, many companies will have plenty in their coffers to fund this next wave of new workers. Whether it is the Ivy-league financial advisor starting from scratch on Wall Street or the fresh-faced engineer looking to work from home in the cryptocurrency field, there are better times coming.
A Great Resignation: In Short
As the United States continues to find solace in the lackluster labor market,v observers can rest well knowing that 2022 and 2023 may be better for companies than ever before. Fresh talent, a bull market, and new technologies being introduced every week are but the tip of the iceberg to look forward to.
With blockchain technologies revolutionizing the face of ownership and the financial ledger, electrical vehicles ushering in a new era of environmentally friendly transportation, and a world healing from the greatest pandemic it has ever known, things are looking up.
It will take a good amount of time before we can start to see the unemployment numbers go down and real/qualify jobs become available. But down they will come. And during this time, companies will be forced to talk about some of the things that truly matter to their employees and prospects. Gone, most likely, are the days of the 40-hour workweek and so too are the days where benefits such as health insurance and paid vacation were bonuses.
In this next era of companies that care, employers are going to have to step up and in a big way. Because a working force that is well-compensated, healthy, and content makes for a well-performing company. And that is exactly what market observers are hoping will ultimately come from The Great Resignation.