Decoding the premise of the Great Resignation!

The world economy has embarked on a journey to recover from the aftermath effects of the COVID-19 pandemic. During the pandemic, the global economy was severely disturbed: distorted supply chains, jammed ports, excessive unemployment, etc. Thus, after a constant struggle, the world is finally coming out in the daylight. However, is it daylight yet? Or another dark evening precedes the world economy?

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The global economy has entered another dark hour, especially the USA and the European nations. The dark here is inflicted by “the Great Resignation”.

The Great Resignation

The pandemic shook the world market, several businesses got shattered, thousands of people lost their employment, significant losses were incurred, etc. After a big rocky trail, the economy has embarked on the revival journey.

However, the most unexpected thing has happened. Employees, especially in the US have begun to resign in large numbers. The trend began after April, and it picked up steam in August. Since US is the world power, anything that happens in the country has a significant impact on the world economy.

The US Labour Department showcased that in 2021, more than 34 million Americans quit their jobs. And the pace is increasing as in August 4.3 million quit their jobs, while in September 4.4 million quit.

The number of job openings are running at an all-time high; however, the applicants are not sufficient. According to the above report, there are 5 million fewer people looking for jobs compared to the pre-pandemic times. Following the US, a similar trend is occurring in the UK, Canada, and several other European nations.

Millions of people have quit their jobs, many have quit even without having new job prospects at hand. Amid a pandemic, looking at the current financial stability of the majority of people worldwide, the Great Resignation sounds shocking. So, why is it happening?

GOOD READ: The great resignation: Five things Aussie firms need to incorporate now!

Image source: Pixabay

The premise of the Great Resignation

Significant numbers of resignations are taking place in healthcare, tech, hospitality, and retail sectors. So, why is this sudden wave of resignation flowing? The main premise is that workers are looking for better, more promising, and stable job profiles. The pandemic has taught that a mere job isn’t sufficient, people need efficient health insurance and other amenities for themselves and their families.

Several people have quit their jobs to take some time out. Many are not comfortable working with others in the physical spaces yet. People from the healthcare sector have quit the jobs mainly because of excessive burnout due to increased workload during the pandemic.

Additionally, the work from home culture of the pandemic has suggested to people that remote working is also a feasible idea. Thus, people are now demanding for more flexible jobs. According to a report, the highest number of resignations are from people in the age group of 30-45 years.

ALSO READ: The Great Resignation: How employers can entice quality employees

Bottom line

As millions have resigned and thousands are still on the path to resign, at this hour, employers need to be on their feet to analyse the long term and short-term impact of mass resignations. Employers should now focus on how to retain the maximum number of employees and increase the company's potential. Additionally, on one hand, it should be okay for employees to leave and on the other hand, employers should respect and pay the due attention to their employees