Workers are still thinking about quitting their job en masse in Europe and the United States, as inflation and a cost of living crisis are fuelling the post-pandemic phenomenon dubbed the “Great Resignation”.
Over four million American workers have quit their jobs since the post-pandemic recovery started in 2021, a phenomenon that was mirrored on a smaller scale in countries in Europe. In France, the number of resignations reached a record peak in the third quarter of 2021, the highest since 2007. In the United Kingdom, the rate of people moving from job to job was at an all time high between October and December 2021.
The workplace exodus did not decrease as life settled into the new normal, mainly because things around the world did not settle down at all – if anything, new circumstances have added up to the reasons why people are not happy with staying in a job that does not offer them enough.
A recent survey of over 52,000 workers across 44 countries conducted by the accountancy firm PricewaterhouseCoopers (PWC) shows that one in five respondents said they are likely to change employers in the next 12 months, with the majority of those seeking to switch jobs for a better salary.
Why are people quitting their jobs?
While the Great Resignation was initially ascribed to a cultural change in the way workers approached their work-life balance following the pandemic and increased burnout, workers’ motivations seem to have fundamentally changed as the world navigates an ongoing economic crisis.
Soaring inflation and a cost of living crisis triggered by the pandemic and worsened by the war in Ukraine are really weighing down on households across Europe, likely pushing workers to seek jobs that allow them to feel financially secure in times of uncertainty.
PWC’s survey found that more than a third of respondents are planning on asking their employer for a raise. The percentage was even higher in the tech sector, where 44 per cent of workers surveyed said they planned on asking their employer for a wage rise.
Philip Bacon, director of digital marketing company Bacon Marketing, told Euronews his company is witnessing this phenomenon first-hand.
“We are seeing clients lose team members from Eastern Europe who are going after US jobs with better pay,” he told Euronews.
While some companies are trying to keep their employees by adding new perks to the job and increasing salaries, many cannot afford to spend more under the current circumstances.
“Everyone, businesses and employees, are affected by the cost of living crisis sweeping the US and Europe,” David Stone, Chief Executive of recruitment consultant MRL Consulting Group told Euronews.
“Companies are looking at ways of reducing running costs, most notably by getting rid of their physical presence and moving to a remote-working framework.
“Employees are now demanding compensation increases to the tune of 10-20 per cent across multiple industries, and rightly so; they know they’re in demand and they know their worth, they won’t be settling for less anytime soon, especially with record rates of inflation”. Readmore
