The Great Resignation shocked economists and CEOs alike in the summer of 2021 when 4 million American workers started quitting their jobs every month.
Seven months on, it’s still happening.
And why shouldn’t it spill into 2022, when data clearly shows that this many quits likely leads to workers seeing better pay, more flexibility, and greater opportunities for career growth at their new jobs?
At least 4 million Americans have quit their jobs every month since July 2021. In January, about 4.3 million Americans, or 2.8% of workers, walked out the door, according to the latest Job Openings and Labor Turnover report from the Bureau of Labor Statistics released Wednesday.
That’s down by about 275,000 resignations from November, when the quit rate hit the highest level recorded by the BLS since the survey launched in 2000.
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It pays to quit
For many, quitting paid off. Over half, or 56%, of U.S. adults surveyed by Pew Research Center say they’re earning more money at their new job. A majority also noted they now had more flexibility around their work hours, better opportunities for career growth, and an easier time juggling work/life balance.
Among the reasons U.S. workers cited as prompting them to quit in 2021 were low pay (63%), followed by a lack of career advancement opportunities and feeling “disrespected” at work, Pew found.
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The average hourly wage has crept up by about 5% over the past 12 months, hitting $31.58 for nonfarm workers last month, according to the Bureau of Labor Statistics employment report issued last week. That’s created a squeeze for companies, many of whom are battling higher operating costs, inflation, and supply-chain challenges—in addition to being forced to raise wages to attract and retain employees. Overall, companies are set to increase worker wages by 3.9% in 2022, according to the Conference Board.
But what’s proved a struggle for companies is good news for workers—at least for now. “We definitely see improvements for sure,” Juliana Horowitz, associate director of research with Pew, tells Fortune. “We know that low pay and the lack of opportunities for advancement, were among the top reasons why people said they quit. And so the fact that sizable shares of people say that they have more of these things—they have higher pay and more opportunities in their current job—is definitely an improvement.”
About one in five U.S. workers who haven’t yet retired quit their jobs at some point last year, according to a new survey from Pew. Changing jobs was much more prevalent among younger workers (those ages 18 to 29), as well as lower-income Americans, Pew found.
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But while most workers saw employer offerings improve in a number of areas, benefits—which 43% of workers cited as a reason to leave—were one factor that didn’t see much change. Just over a third of workers say the benefits at their new job are about the same as their previous perks, while 22% actually report worse benefits.
And those pay increases tended to be common among those with a degree. About 66% of those with a college education say they’re now earning more compared with 51% without a degree.
This story was originally featured on Fortune.com
Source: finance.yahoo.com