February 9, 2022
Manufacturing Business Technology recently published insight featuring Jay Zagorsky, Senior Lecturer of Markets, Public Policy, and Law, on the question of whether the term “Great Resignation” accurately describes today’s labor market.
The article describes recent findings around the labor shortages in the current economy, which Jay elaborates on from the perspective of individual quit rates by industry. Jay determined that much of the turnover was driven by the Leisure and hospitality, Professional and business services, and Trade, transportation, and utilities industries. As a result, these numbers were enough to skew the results overall. Jay also points out that the data that has influenced the term “Great Resignation” has only been collected as far back as 2000, and so does not factor in the differing job markets in other eras of American history when the economy has been particularly strong.
By looking deeper into the numbers, Jay found that younger generations are more likely to job hop but says there is no single generation to blame for the high number of quit rates. Although there are many grey areas to the labor market, the article concludes by offering best practices to help businesses fulfill the needs of current employees rather than focusing on filling the gaps.