Economists Say That The 'Great Resignation' Is Over. Explain Why

Since the pandemic, millions of employees across the world left their jobs, disrupting the workforce. According to a BBC report, 47 million people quit their jobs in the US in 2021, and 50 million more in 2022, according to data from the US Bureau of Labor Statistics (BLS). The trend of mass resignations was ultimately given a term in 2021 called 'the Great Resignation' by organisational behaviour professor Anthony Klotz.

Workers cited a lot of reasons for quitting like, a desire for more flexibility, money, or benefits, or to leave toxic company culture.

However, the 'great resignation,' appears to be ending, economists say. According to New York Times, the rate at which workers voluntarily quit their jobs has fallen sharply in recent months, normalising to pre-pandemic figures.

''Looking at the overall resignation numbers, and seeing they're back to 2019 levels, I think we can say it's over. It's not just a simple start-and-stop, of course, but it does seem that we're at the tail of it,” said Anthony Klotz, now a professor of management at University College London's School of Management.

He said that the impact of the current economic instability on the labour market could be a reason. Fears of AI taking away our jobs could also be another reason.

''Even if you want to quit your job, you look out at the market [now] and think, ‘maybe I shouldn't. The economy has slowed down, there are layoffs in the headlines, warnings in the headlines that AI is going to take all of our jobs – it all makes people think twice before they quit a job,'' he added.

Another expert said that many people have shifted from less desirable industries to more sought-after ones, called the 'Great Reshuffle' and are now comfortably settled in their new roles. Others have stopped quitting because of the more flexible nature of jobs. In addition, many companies are now taking employee well-being seriously and also making workplaces more inclusive and diverse. 

However, studies show that there are still plenty of ongoing workforce engagement problems for employers to worry about. 

Though employees are not putting in their papers, they are practicing something called ''Quiet Quitting.'' The trend of simply doing the bare minimum expected at work took off on TikTok in 2022 and clearly resonated with young people. The trend has frustrated managers, with some reportedly concerned about their employees slacking off. 

However, experts say that 'quiet quitting' could be a "great liberation" in response to the 'great resignation'. People are rejecting overwork and burnout and choosing balance and joy. They are establishing boundaries so their identity and self-value are not tied to their work productivity.