Did you get the memo? The Great Resignation is Over

Last week, CNN released an article on the end of the Great Resignation. According to federal data, in 2022, people left their jobs in record numbers – more than 50 million to be more accurate – the highest since 2000, the year the government started keeping track. The reasons behind the great resignation included burnout from the pandemic, disengagement from current job roles, labor shortages, pay increases, and other job opportunities. Due to a tight labor market, most people were able to find a job. ?

However, the great resignation seems to be over as people are starting to hold on to their jobs again, mostly due to stubborn inflation, slowing wage growth, and mass layoffs at notable companies such as Google, Microsoft, Meta, and Amazon. Job quitting is a sign of worker confidence whereas layoffs indicate that employers are becoming cautious about growth projections. ?

But are those factors really why the great resignation is over? That’s part of it. Here we break down the rest.?

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Cooldown Without Recession?

According to estimates by economists, the US economy added only 179,000 jobs in April 2023 (Source ). The rate of growth is far less than the one seen during the past two years. Moreover, economists predict that the data for May and June will show the same rate of growth or less. However, the cooldown in jobs avoided a recession as there are still plenty of jobs in the market. ?

And it’s not just growth – the current number of open jobs seems less when compared to the past two years. The pandemic forced a shift in hiring behavior as tech companies brought on more people at higher salaries under the guise of the pandemic lasting longer than it did. When the pandemic ended most tech companies went through a market correction which saw mass layoffs and hiring cutbacks. ?

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Smaller Pay Increases when Switching Jobs?

The job switch is not working for employees anymore as the wage growth in switching jobs is the lowest since November 2021 (Source) . Workers who are staying on the job are satisfied with the wage growth given by their employer. This is because the wage growth for job switches is declining at a steeper rate than the wage growth among job stayers. ?

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The Labor Market is Rebalancing?

While plenty of job opportunities are still present in the market today, the number is nowhere near as high as what spurred the great resignation. The labor force became scarce during this time as workers began to address pressing personal issues from the fallout of the pandemic. ?

Now that workers have re-entered the market, there is a fine balance between demand and supply, making jobs more competitive as well as midrange benefits being offered by employers. ?

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The End of Quiet Quitting and Quiet Hiring ?

Two trends became very popular during the great resignation, namely quiet quitting and quiet hiring. Quiet quitting is the practice of doing the bare minimum at work. Employees did not feel like putting in extra hours at work due to the rise in lucrative opportunities in the market. ?

Quiet hiring is the practice of leveraging the skills and abilities of current employees to give them added responsibilities or new roles in the organization without hiring new people. With employees resigning in record numbers, quiet hiring seemed like the right option.?

Currently, quiet quitting is on a down trend as employees find it difficult to switch jobs. Similarly, quiet hiring is declining as organizations are recruiting people with specific skillsets and abilities essential for the vacant position in their company. ?

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Wrapping Up ?

The rate at which Americans are quitting their job is back to pre-pandemic levels, as well as job openings decreasing in the technology and logistics sector, specifically in transportation and IT device manufacturing. Nevertheless, other industries, such as healthcare, still maintain a steady flow of job openings, showing that while the great resignation may be over, the workforce in the US still as opportunities available to them. ?

So, what do you think? Do you think the Great Resignation is over? Let us know your thoughts.?

If you would like to learn more, visit us at SkillGigs.com or contact us . ?

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