Explained:: What Is Great Resignation And Why are So Many People Quitting Their Jobs

In 2020, resignation rates in the United States fell due to the pandemic's dread and uncertainty. However, as the economy continues to return to its pre-pandemic 'normalcy,' it appears that gradual recovery has brought along a few challenges. A new trend popularly known as 'Great Resignation' has emerged, wherein a large number of employees are quitting.

What is the Great Resignation?

In November 2021, 4.5 million persons left their job voluntarily with 3 percent of the workforce quitting their jobs each month, which is an ¡°all-time high,¡± according to the US Bureau of Labor Statistics. Furthermore, 23 percent of the workforce has expressed an interest in switching jobs in 2022.

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Putting these numbers into perspective, hospitality, healthcare, transportation as well as warehousing, are the worst hit by the Great Resignation, and among those who have opted out of work, while many others were willing to seek new jobs. The skilled labour force has shrunk in many Central and Eastern European countries. After experiencing and surviving pandemic lockdowns, many people began to consider "work-free" living as a viable choice.

According to estimates, low wage workers have resigned at a higher rate than their higher-paid counterparts. After decades of stagnant and declining salaries, workers are pushing back against a wage shortage as they leave low-wage employment for higher-paying jobs.

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National Economic Council Deputy Director Bharat Ramamurti tweeted a chart that showed how quits were elevated in lower-paying sectors, stating the process as "exactly the kind of economy President Biden said he wanted to create." He further wrote in his tweet, "Workers are quitting to go take new, better-paying jobs. It's not the G

Workers are quitting to go take new, better-paying jobs. It's not the Great Resignation -- it's the Great Upgrade. And it's exactly the kind of economy @POTUS said he wanted to help build. pic.twitter.com/7ibPD1THEH

¡ª Bharat Ramamurti (@BharatRamamurti) January 10, 2022

According to a survey by Quess in 2021, the 'Great Resignation' is an unending talent surge that has broken the demand-supply equilibrium, compelling organisations to focus on both talent acquisition and retention at the same time.

Why is the Great Resignation Happening?

The popular trend started when the American administration refused to provide employee benefits in response to the COVID-19 pandemic. So, a shift to work-from-home culture, desire to move into a more suitable profession, and long term goals fueled this whole new trend. During this, a strike wave known as 'Striketober' began, with employees participating in a general strike against poor working conditions and low wages.

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In light of the ongoing wave, remote working has made it possible for corporates and employees to have flexible work models. Hence, Many employers started offering better benefits and higher salaries to employees, leading employees to re-evaluate their options. In India, due to this, the jobs are moving towards people in tier II and tier III cities. Accordingly, making a shift in India¡¯s spatial economy.

Scenario in India

The fundamental shift in the labour market that is occurring in developed economies may not have an impact on India. This is due to the differences in social protection and citizen per capita income between developed and developing economies.

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Although India appears to be relatively immune to this global wave, the country is witnessing a different kind of labour phenomenon. The employee attrition rates in some companies, particularly in the technology sector, are skyrocketing. So, with the fading of the Covid epidemic, India's labour population is seeing significant churn across a wide range of businesses.

Although some employees are quitting their jobs permanently and joining the expanding startup ecosystem, the percentage of people leaving their jobs permanently is miniscule.

According to experts, while in the US and European nations, the factors like burnout at the workplace, low wage, sound social security protection and unfair treatment by employers are driving this trend, the rising employee churn in India is mostly limited to well paying, white-collar jobs to a large extent.

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