The Truth About the ‘Great Resignation’ – Who Changed Jobs, Where They Went and Why
Carrillo-Tudela, C., Clymo, A. & Zentler-Munro, D. (2022, March 28). The truth about the ‘great resignation’ – who changed jobs, where they went and why. The Conversation. https://theconversation.com/the-truth-about-the-great-resignation-who-changed-jobs-where-they-went-and-why-180159
Carlos Carrillo-Tudela, Alex Clymo, & David Zentler-Munro write: "There was indeed a great resignation in the UK, according to the data. The chart below shows that resignations rose sharply from the end of 2020 and significantly exceeded their pre-pandemic levels in the final quarter of 2021. However this is not because workers decided to abandon work and leave the labour force. Instead, we are seeing a rise in workers resigning primarily to start new jobs for other employers. The only age group where there has been an increase in people leaving the labour force has been among the over-50s, who have been retiring in larger numbers than normal. So, why have people been resigning to work for other employers in above-average numbers? Some commentators have suggested that the rise has been propelled by individuals looking to make drastic career changes, as workers reevaluate their lives after the pandemic. In fact, this is not borne out by the data."
"Could the rise in resignations be contributing to rising labour shortages? The latter half of 2021 saw many reports of firms facing difficulties filling vacancies, raising the possibility that rising resignations could be causing these recruitment difficulties. We found that there was a higher rate of resignations among workers coming from the five “shortage” sectors finding it hardest to recruit people: construction, manufacturing, accommodation, health, and food, administration and support...Instead of being the cause, the increases in resignations in these five sectors are more likely to be a symptom of their labour shortages: employers “poaching” staff from rivals by offering better conditions as the economy rebounded from the depths of the pandemic. Losing staff will obviously have created additional pain for employers who were already struggling to recruit. In sum, contrary to what some might be hoping, the so-called great resignation of 2021 has not significantly improved the career paths of workers. Workers who have been willing and able to change employers have been rewarded with improved pay, while wage growth for those who have stayed put will be slower and insufficient to offset large increases in the cost of living."
Additional Information
Carrillo-Tudela, C. et. al. (2022). Search and Reallocation in the Covid-19 Pandemic: Evidence from the UK. CESIFO Working Papers, no. 9621. https://www.cesifo.org/DocDL/cesifo1_wp9621.pdf
(2022). Older workers after the pandemic: creating an inclusive labour market. TUC. https://www.tuc.org.uk/research-analysis/reports/older-workers-after-pandemic-creating-inclusive-labour-market
Cominetti, N. et. al. (2022). Changing jobs? Change in the UK labour market and the role of worker mobility. The Economy 2030 Inquiry. https://economy2030.resolutionfoundation.org/wp-content/uploads/2022/01/Changing-jobs.pdf
Photo Source: Jasmund, M. (2018). Exit [Photograph]. Unsplash. https://unsplash.com/photos/t-WxNy6CMyU