Last week, the U.S. Bureau of Labor Statistics announced in its Job Openings And Labor Turnover August report that while the number of separations were little changed at 6 million (4.1%), within that number, there was a 2.9% increase (4.3million) in Americans quitting their jobs. It was a record-breaking month following previous record months. The quits rate “can serve as a measure of worker’s willingness or ability to leave jobs.”
These are disturbing statics for employers given the difficult time they have had in finding bodies to fill vacant positions, let alone talented ones. Many organizations anxiously awaited the cut of enhanced unemployment benefits, only to be disappointed by not receiving an influx of candidates after the cuts were put in place.
According to a WSJ article, experts are not in agreement on whether the benefit cut boosted employment numbers. ““If the question is, ‘Is UI the key thing that’s holding back the labor market recovery?’ The answer is no, definitely not, based on the available data,” said Peter Ganong, a University of Chicago economist, referring to unemployment insurance.” Yet “Economists caution against concluding from these results that expiring benefits had no effect on employment.”
Let’s face it, there are many factors outside of unemployment benefits that effect one’s decision to go back to work; childcare, low-wage jobs, school closures, a push to return to the office, flexible hours, and the mental state caused by the pandemic. Not to mention, the labor unrest of those that are working. Case in point, the 10,000 plus John Deere workers that went on strike for the first time in 35 years.
The pandemic has forever changed not only the way we live, but the way we work. Employees have had enough and are pushing back. Why can’t we have our cake and eat it too? They want to be valued, paid fairly, have decent benefits, good leadership, and the flexibility to take care of their family.
Oli Povey said it best, “While many are dubbing this phenomenon the ‘great resignation’, perhaps the ‘great reassessment… of worker priorites’ is more apt, though more cumbersome and not quite as catchy.”
Tamara Knapp Advisory LLC
Based in Novi, Michigan
Serving both startups and established clients.
Office: (248) 301-9699
Email: letsgo@tamaraknappadvisory.com
