Around 4.3 million people resigned from their jobs in the United States in August 2021, an uptick of 242,000 from July, said the US Bureau of Labor Statistics (BLS), as reported by The Indian Express. The resignations have come despite the COVID-19 pandemic squeezing job markets. This trend of people quitting their jobs has also been noticed in some European countries.
What is the Great Resignation?
Experts are identifying this trend as the Great Resignation, where a record number of people are voluntarily quitting. As the pandemic effects are subsiding, and things are returning to the pre-2020 era, people seem more confident about leaving their jobs to find better opportunities. Since this phenomenon is visible in developed countries, people could also be leaving their jobs due to improved social security and unemployment benefits, which kicked in after the pandemic.
According to an Indian Express report, Germany and several countries in central and eastern Europe have witnessed a cut in the skilled labour force, and suggest “stronger safety nets” are responsible for people’s disinterest in holding on to their jobs.
A Forbes report, however, argues that the reason for Great Resignation is actually very simple. The report said it’s simply a demand and supply issue, as jobs started to return due to the weakening of the pandemic. There were 10.4 million available jobs in August 2021 in the US, while the figure for unemployed people in the same month was 7.4 million, the report mentioned.
India largely unaffected
Coming to India, the arguments of unemployment or social security benefits do not hold water. More importantly, people are not rushing to quit their jobs here since the employment market in India is completely different from the western countries. It is also not clear whether a large number of jobs which were lost due to the pandemic are returning.
However, there are some post-pandemic trends available in India, including about the remote working scenario. “If in the past companies had planned for opening offices in tier 2 and 3 towns, today it is becoming a reality because the pandemic has shifted our spatial economy,” Pankaj Kapoor, Managing Director of real estate data analytics company Liases Foras, told The Indian Express.
(Edited by : Shoma Bhattacharjee)
First Published: IST