As the economy has continued to recover from the effects of the COVID-19 pandemic, there has been a surge in job openings, with some employers having a difficult time filling all their open positions. Millions of Americans are quitting their jobs each month, even in the face of high inflation. The incentives available from changing jobs, as well as a desire to get away from careers impacted most by COVID-19, are two big factors driving what’s been dubbed the “Great Resignation.” As a result, new job applicants have a lot of leverage.
The rate at which people quit their jobs isn’t the same across the whole country, though. WalletHub took a look at the data to rank the 50 states and the District of Columbia based on how frequently people are leaving their places of employment.
|Rank||State||Resignation Rate (Latest Month)||Resignation Rate (Last 12 Months)|
Business experts across the country weighed in on the resignation trends and numbers. Most agreed that workers leaving their jobs were in the service industry and we’ve seen those impacts in the CSRA. Some companies are offering sign-on bonuses because many who leave their jobs are finding another with a pay raise.
Employers are having a tough time finding workers who will stay with them. Turnover is very high (especially in the service industry). This is really affecting small businesses and some employers are simply closing their shops due to a labor shortage. Others have more limited hours or limited days open, so that the workers they do have can take a day or two off work.
The bottom line is that individuals are looking at their jobs differently now. They don’t feel they need to take the abuse from others, so they choose to quit rather than continue. The pandemic has really helped some to realize there is more to life than working in a stressful and abusive job, so they quit.
Second, businesses will have to become more flexible if they want to keep their top workers. Many jobs (e.g., computer analysts) do not require workers to be in the office physically. They can work safely from home. Unless these are essential workers (e.g., nurses), many will opt to work from home. Employers will have to get much better at using metrics to determine if their employees are performing well rather than simply making them sit at their desks (e.g., administrative assistants).
Another issue is that women are leaving the workforce in droves. Much of this is due to the incredibly high cost of childcare. Women still are responsible for 90% of childcare. When women have to pay the high costs of childcare, it is often not worth it to work. It’s a vicious cycle that can only be broken if there is affordable childcare.