Recessionary Times Are Altering the Course of 2022’s Great Resignation
An uncertain future is a residual effect of the pandemic—whether voluntary or not, job changes are an aspect of that uncertainty. The U.S. workforce has taken a new perspective on remote work and job loss. They’re realizing their monetary and personal worth and demanding better circumstances than pre-pandemic life allowed for.
Therefore, the Great Resignation commenced this year. In March 2022, the number of people quitting their jobs set new records with 4.54 million people quitting.
There are still many people that feel more comfortable staying in their jobs for multiple reasons. The job market, the economy and the world are still quite uncertain—and even downright unsettling—but job security combats those uneasy feelings.
A Competitive Job Market
This flood of people entering the job market has created fierce competition. In a pre-pandemic world with everyone working there were a dozen applicants for any job that came available. Now, when you check the job listings on LinkedIn there are hundreds, sometimes thousands of applicants for any given position.
This competition has made it harder to change positions, and the people who currently have a job are looked at more favorably by recruiters. This is leading people to stay in their careers, even if they are hunting. Those that are hunting for new jobs are finding it harder and harder to get placed into a position, so the Great Resignation is coming to a close.
How Inflation and Recession Come into Play
On the one hand, some industries struggle to find and retain talent. On the other hand, companies are struggling financially and releasing a large percentage of their employees. This further exacerbates the competitive nature of the hiring market.
Inflation is making its mark here too. Companies are paying more for raw materials, energy and transportation than they ever have. This directly impacts their bottom line and the resources they cannot do without. When they need to make cuts to afford pricing changes, human resource cuts are coming first.
But there is still a market for capable professionals, but companies are having a hard time finding them. Are you a company looking for executives that are a great culture fit? Wyckoff can help.