The Great Resignation

Intelligent Economics > Analysis > The Great Resignation

In September, a record 4.4 million Americans quit their jobs. Workers took advantage of new job openings across the country. As a result, it can be expected for employers to raise wages or employ teenagers as a new source of employment. According to Gusto (they provide payroll and other services to small businesses), teens make up about 6% of seasonal holiday hiring; but this year’s rate is 13%.

Teenager’s low expectation for pay is attractive for employers. It is estimated that people have enough savings to switch to better jobs, for better pay or to start their own businesses. On the other hand, with inflation at the highest it’s been in the last 3 decades, employers are left with their hands tied. Businesses are coping with higher production prices and higher prices for their own goods. Experts have called this “The Great Resignation” and describe the signal as a shift in workers’ priorities in search for more remote work and flexible schedules. It is not out of the realm of possibility that a good part of the workers that have quit are related to the new surge in cases and having to take care of their children. Workers who quit in September made up 3% of the entire workforce. In August 4.3 million workers quit, compared to before the pandemic began, when 2.3% of workers quit their job.

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