Since the beginning of the epidemic, five million individuals have left the labor market. This is particularly due to the performance of the Stock Exchange, which has allowed those who are older to anticipate their retirement and leave the workforce earlier. Together, the recovery of the economy and the change of employment contribute to an increase in pay, which in turn increases the pace of resignations in service sector positions.
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| [The Great Resignation: The movement that worries the United States] |
The number hit an all-time high in the history of the Department of Employment, being the highest it has ever been. The percentage of the working population that is subject to turnover increased to 2.9 percent in August as a direct result of the 4.3 million individuals in the United States who decided to leave their employment. a rate that is 0.5 percentage points higher than its level before the pandemic, and which increased at a considerably more rapid pace than it did when it recovered from the last catastrophe.
The term "The Great Resignation" has already been used to describe the phenomena that has taken place. Employees who, as a result of the pandemic, have altered their connection to work is shown, which is something that many people already consider to be a key turning point in the world of work.
The field of technology is rife with testimonials, but not just that. A banker in New York recalls a period when six staff quit in the span of just two days: two to return to school, one to move to a rival, another to switch industries... According to the findings of an internal research, five percent of the company's teams have shown interest in making a career switch, which is up significantly from the pre-crisis figure of less than one percent. A pharmaceutical business on the East Coast has to provide a yearly salary of $100,000 if they wish to recruit a skilled technician profile. This is a significant increase from what was done only two years ago.
Multiple phenomena interact with one another and become stronger. As a result of the pandemic, the number of adults in the United States who are not participating in the labor market (they are neither working nor seeking for job) has increased by 5 million, bringing the total number to 100 million (out of a total population of 330 million 'inhabitants.') The most astonishing fact, however, is that this number has not changed at all since the summer of 2020, despite the robust recovery and months of growth in the economy of the United States.
When examined more closely, it seems that the majority of people who have exited the job market are either very young or very elderly. The first person to perhaps return to school, and the second person to depart... for retirement. Those who wanted to take a break were able to get some much-needed relief in the shape of household assistance in the form of cheques. Some people have been able to significantly increase their fortune as a direct result of the success of the stock market. They are thus more than 3 million to have foreseen their retirement, as shown by a survey conducted by the Federal Reserve of Saint Louis (Missouri) in the state of Missouri.
This exacerbates an existing structural issue in the United States: the rate of participation in the labor market (those who either have a job or are looking for one) dropped by nearly 2 percentage points in the previous eighteen months, reaching 61.6 percent in September. This number represents those who either have a job or are looking for one. And crises produce level effects: the participation rate in the United States labor force was 66 percent prior to the "Great Recession" of 2008...
A shortage of resources is created as a result of this outflow of assets, which, when combined with the takeover and change in nature of certain positions, accelerates the flow of resignations. Due to the fact that the law of supply and demand is particularly elastic in the United States, employers have the right to lay off their employees without prior notice, and employees have the same right to quit their jobs at any time.
Billboards can be found lining the highways of Pennsylvania with advertisements for open positions. Even more enticing is the fact that RHI Magnesita, a York-based industrialist, will pay a hiring bonus of $3,000. In addition, a number of large chains have recently increased their hourly minimum wage to $15, up from $10 to $12 in the past.
To the point that it is causing widespread resignations in low-paying service professions, which are now witnessing record-high rates of resignations (6.8 percent in the hotel and restaurant industries). August had a departure rate in retail sales that was much higher than the usual for the month. According to figures compiled by the BLS in August, the percentage of employees quitting their jobs in the financial or real estate industries was a much lower 1.3 percent. When broken down by region, the South and the Midwest have the greatest departure rates.
The increase in earnings that has occurred over the last several months may help to moderate the trend. According to Goldman Sachs, the level of low salaries increased by an additional 6 percent during the third quarter, after an already significant rise during the second quarter. This autumn, the cessation of special help for job searchers, the reopening of schools that teach students face-to-face, and slower growth should all contribute to an improved labor market. Predictions that are still awaiting verification.