August 2021 saw one of the highest resignation values in a while, with over 4.3 million individuals quitting in the US.
It doesn’t stop there. In OECD nations, around 14 million have left the labor market. Currently, they’re classified as either “not working” or “not seeking work.”
The numbers are even larger though. A total of 20 million resignations have been recorded by the Bureau of Labor Statistics going all the way back to April.
As predicted, the resignations have been driven by the pandemic, with businesses adjusting to its effects over the past two years.
And while businesses are just recovering from the effects, many workers are now following an anti-work credo, leaving their jobs for individual employees.
This comes just after the largest unemployment rates since the Great Depression. It’s a rare phenomenon, and it might as well be termed as “the Great Resignation.”
What Are the Causes of the Great Resignation?
Beyond COVID-19, other causes include the desire for a work-life balance.
Many workers worldwide would complain of low pay, stressful deadlines, and intolerable bosses on work sites.
Plus, most OECD resignations came from the hospitality and retail sectors. In fact, the highest recorded resignations were in food and accommodation services (157,000+), followed by wholesale trade (26,000+).
Sharp falls were especially noticeable in Germany, Eastern, and Central Europe.
What About Social Safety Nets?
In any part of the world, this is a major factor when choosing to leave a job.
In OECD countries, social safety nets are stronger. Thus, leaving a job is much easier than say a third-world country.
Of those who chose to resign mid-pandemic, most (at least in the US) were mid-rank professionals, according to academics from Germany’s University of Siegen.
Employees of that caliber tend to have stronger safety nets, better job offers, or a shot at creating a startup.
Those tend to be opportunities lacking to younger professionals (due to a lack of funds) and to seniors working (due to constraints on their labor future).
“The Great Resignation” in India
India is a major outsource market for low-level employment. However, with a lack of social security for most Indians, joining the resignation movement is difficult.
This seems to be changing though. Many companies are now opting to hire remote workers rather than hiring office spaces in low-tier towns.
The result has been a big shift in the Indian freelancing market. Many are now attempting a remote work style with companies abroad.
Other Trends in India
The Indian work climate is noticeably busier, with fewer off-days, and many working year-round.
This has led to a noticeable churn in ITeS and IT sectors, according to ANAROCK Group, an Indian realty company.
This had led to many startups hiring individuals in bulk while paying much higher incomes than before.
Other Noticeable Trends
The work-from-home trend is now affecting the real estate market.
Many workers are seeking better homes, either for the extra office space or for their e-schooling properties.
As is obvious, the pandemic hasn’t brought on 100% negative effects. Positive trends have emerged that may reshape the world’s workplace forever.
At GlobalRCG, we help individuals and families achieve a higher quality of life and greater financial security through a second residence, relocation, citizenship, and passport programs. We take the hassle out of the process and provide peace of mind. To check your eligibility, submit our assessment form today!