The Great Resignation: Why Are People Quitting Their Jobs?
This article explores the recent phenomenon of mass job resignations and examines the underlying reasons behind this trend. It delves into the historical context of the 40-hour work week and discusses whether it still aligns with today's economic realities.
Gen Z and the Workplace
Recently, a CEO of Squarespace suggested that Gen Z job seekers should be willing to work for free, work long hours, and be willing to do anything. This sparked debate, contrasting with the idea that if you are good at something, you shouldn't do it for free. This brings up the question of value of labor in the current economy.
The Wave of Resignations
2021 and 2022: The Great Resignation
In 2021, a significant wave of resignations began, with over half of surveyed individuals expressing their intent to seek new employment in 2022. Data confirms that a staggering 47 million Americans quit their jobs in 2021. This record was surpassed in 2022, which became known as the year of the Great Resignation, with over 50 million Americans leaving their jobs.
2023 and 2024: Quiet Quitting and Resignation 2.0
The trend continued in 2023 with "quiet quitting." Even CEOs of major companies like YouTube, BP, and Walgreens resigned, despite high salaries. This trend is expected to continue into 2024, which some are calling the "Year of the Great Resignation 2.0," as three in ten workers plan to quit, with a large portion attributed to Gen Z and Millennials.
The Neurosurgeon's Epiphany
An MIT neurosurgeon's story highlights the deeper issues at play. After ten years in the field, earning a substantial income, he quit. He realized that while surgeries sometimes helped, they often didn't provide lasting solutions. His research revealed that patients who recovered well shared common lifestyle factors.
Lifestyle and Healing
These factors included:
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A plant-based diet, low in salt
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Regular exercise leading to sweat
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Adequate sleep (8 hours)
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Strong social support
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Stress management
He discovered that patients lacking these factors experienced only temporary relief from surgery.
The Problem with the System
He realized that the healthcare system's focus on profit incentivized treatments like pills and surgeries over lifestyle changes that could promote healing. This system made it difficult for him to provide the most effective care to his patients.
Why Are People Quitting?
More people want to quit their jobs than ever before. A study by Microsoft and LinkedIn showed that 46% of 31,000 people across 31 countries wanted to quit, more than during the Great Resignation. Statista surveys identified the top reasons for quitting:
- Low pay
- No advancement opportunities
- Feeling disrespected at work
- Childcare issues
- Not enough flexibility or good benefits
- Working too many hours
- Relocation
- Working too few hours
- Employer required vaccination
However, these reasons, while valid, don't fully explain the recent surge in resignations.
The 40-Hour Work Week and Productivity
The Fair Labor Standards Act (FLSA) of 1940 established the 40-hour work week to increase productivity. This law also defined overtime pay and full-time vs. part-time employment. However, technological advancements have drastically increased productivity since then.
The Productivity Gap
Modern technology allows workers to produce significantly more than in 1947. However, wage growth hasn't kept pace with productivity. People are either working multiple jobs or not being fairly compensated for their increased output.
Factors Contributing to Wage Stagnation
Several factors have contributed to the decoupling of wage growth from productivity:
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Taft-Hartley Act of 1947: Restricted union power.
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Investment Tax Credit of 1962: Encouraged automation.
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Trade Act of 1974: Led to overseas manufacturing.
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Oil Shocks of the 1970s: Caused stagflation.
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Airline Deregulation Act of 1978: Increased competition, lowered job security.
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Focus on Shareholder Value: Prioritized profits over worker wages.
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Right-to-Work Laws: Weakened unions.
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Motor Carrier Act of 1980: Deregulated trucking, increased competition.
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NAFTA: Increased competition from lower-wage countries.
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China's WTO Entry: Increased imports, lowered American wages.
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Rise of the Gig Economy: Lacked wage protections and benefits.
The Pandemic and a Shift in Perspective
The pandemic served as a catalyst, forcing people to re-evaluate their priorities. The mentality shifted from "living to work" to "working to live." People began prioritizing their mental health and overall happiness over solely focusing on work. The constant grind and burnout became unsustainable.
Should You Quit Your Job?
Whether or not to quit depends on individual circumstances. It's crucial to have a financial safety net (6 months to 1 year of emergency expenses). Experts recommend switching jobs every 2-3 years for faster income growth. Ultimately, the decision should align with one's values, priorities, and financial stability.