Employers are facing a more demanding labor market as inflation rages on. With high prices over everybody’s heads, the Great Resignation growing trend is here to stay.
The past two years have been rough on everybody, especially workplaces. With the pandemic giving employees a reality check, companies found it hard to keep attrition at bay. After all, with dire conditions at their hands, many people, young and old, have decided that they deserve better, whether that be higher pay, different career tracks, or just a mental break.
Great resignation statistics have shown that in September 2021, there have been 4.4 million workers quitting their jobs and moving to work with better pay.
Why is the great resignation happening?
There had been some hope this year that the labor market would improve. But clearly, Great Resignation 2022 is a real thing.
To give you a picture of today’s labor market, more and more people realize that companies don’t value them. Because of the rise of working from home opportunities, many are also evaluating their choice of work once more.
Since the pandemic, 20 million jobs have been lost across 38 countries that are part of the OECD. In that number, 14 million unemployed people are not actively looking for work. In fact, they are playing the long game to seize the right offer.
You would probably be aware of the rise of unions across various establishments by now. October last year, in fact, became the banner month for significant strikes. Their demands are pretty simple: better pay, more breaks, and flexible working hours. Of course, most companies are reluctant to give this away, but the labor market is proving to be the more stubborn.
But Great Resignation growing and moving across the world is not surprising. With mental health at an all-time low, people are choosing themselves first.
What does it mean for the rest of us?
This situation will likely go on for the next two quarters. Based on current trends and data, the Great Resignation growing in different regions worldwide seems to be the future.
It seems that the Great Resignation growing does have some benefits for everyone across the labor market. Because supply chains are so low, but pandemic demand for products remains high, employees can leverage the job market against potential employers.
In fact, they have been doing so for the past months. More strikes and unions are showing up globally, not just in the US. In Germany, there has been a decrease in skilled workers to account for shortages in various industries like nursing care and green tech.
According to Andrew Watt, head of economics at the Macroeconomics Policy Institute at Hans Bockler Foundation, it is primarily a wage issue. And it’s true. In Central and Eastern Europe, pandemic closures and rising wages have led to a shortage of meatpackers and hospitality workers in Germany and Denmark.
Watt says that this might not be a bad thing, though. Wages will have to increase for people to get back on their feet and into the tough job.
China also sees its own reckoning in the workplace. Beijing has warned of the decreasing number of workers in the country’s profitable tech industry. Even today, the country is strained because of high demands and a lack of manpower.
It seems to be more of a challenge to governments and companies to raise wages for tough jobs. The Great Resignation growing in different countries might spell a brighter future for laborers.
