Welcome to the Take-This-Job-and-Shove-It Economy

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As pandemic life recedes, many people are rethinking what work means to them, how they are valued, and how they spend their time.

It's leading to a dramatic increase in resignations — a record 4 million people quit their jobs in April alone, according to the Labor Department.

Of that 4 million, more than 740,000 people worked in the leisure and hospitality industry, which includes jobs in hotels, bars and restaurants, theme parks, and other entertainment venues.

In normal times, people quitting jobs in large numbers signals a healthy economy with plentiful jobs. But these are not normal times. The economy is still down 6.8 million jobs from where it was in February 2020. Yet employers are complaining about acute labor shortages.

The share of U.S. workers leaving jobs was 2.7 percent in April, a jump from 1.6 percent a year earlier to the highest level since at least 2000.

A?study by Microsoft?found that 41% of the global workforce would consider leaving their current employer within the next year. And a?poll from Monster?reports that 95 percent of workers are at least contemplating a job change.

"We haven't seen anything quite like the situation we have today," Daniel Zhao, a labor economist with the jobs site Glassdoor, told NPR.

The great migration to remote work has had a profound impact on how people think about?when and where they want to work.

"We have changed. Work has changed. The way we think about time and space has changed," says Tsedal Neeley, a professor at Harvard Business School and author of the book?Remote Work Revolution: Succeeding From Anywhere.

The wave of resignations marks a sharp turn from the darkest days of the pandemic when workers craved job security while weathering a national health and economic crisis.

The shift by workers into new jobs and careers is prompting?employers to raise wages and offer promotions?to keep hold of talent.

The appetite for change by employees indicates many professionals are feeling confident about jumping ship for better prospects, despite elevated unemployment rates.

While a high quit rate stings employers with greater turnover costs, and in some cases, business disruptions, labor economists said churn typically signals a healthy labor market as people gravitate to jobs more suited to their skills, interests and personal lives.

Several factors are driving job turnover. Many?Workers now crave the flexibility given to them in the pandemic. And greater flexibility is shaping up as a perk that companies can wield to poach talented people.

“Remote is going to be the new signing bonus,” Marc Cenedella, founder and chief executive of Ladders, told The?Wall Street Journal.

"Instead of dangling, ‘We’ll give you $10,000 if you sign for this job,’ it’ll be: ‘Instead of having to commute 35 minutes every day, go to work, and get in your car and drive 35 minutes home, you can work from your home office all the time,’ ” said Cenedella, whose company operates a?job-search site for jobs paying north of $100,000 a year.

Others are?burned out from extra pandemic workloads and stress, while some are looking for higher pay to make up for a spouse’s job loss or used the past year to reconsider their career path and shift gears.

However, the main reason employees are quitting their jobs en masse, Harvard economics professor Jason Furman argues, is simpler: There are a record number of job openings in the U.S. right now (9.3 million), and in any economy where lots of jobs are available, people leave their existing roles for greener pastures.

Altogether, human resource executives and labor experts see a continuing wave of resignations. In a March survey of 2,000 workers by?Prudential Financial?Inc.,?one-quarter said they plan to soon look for a role with a different employer.

“People are seeing the world differently,” Steve Cadigan, a talent consultant who led human resources at LinkedIn during its early years, told The?Journal.?“It’s going to take time for people to think through, ‘How do I unattach where I’m at and reattach to something new?’ We’re going to see a massive shift in the next few years.”

Dean Barber is the principal of BBA, a Dallas-based consultancy that helps economic development organizations unleash and create a better business environment within their communities. BBA also helps companies find optimal locations where risks are reduced and a return on investment is enhanced. Visit us at barberadvisors.com