Although the pandemic added sickness, death, and economic shutdowns to its toll, financial challenges and job losses during the previous two downturns produced their own mental anguish. The COVID-19 pandemic, the Great Recession, and the dot-com recession all had significant adverse economic impacts on individuals and organizations. Because it has been reported that the 9/11 terrorist attack, which occurred prior to the end of the dot-com recession, adversely affected people’s work attitudes, the end of the dot-com recession is extended to March 2002. ![]() labor market dynamics during the COVID-19 pandemic (here, the pandemic period spans from March 2020 to January 2022) with those from the two previous recessions-the Great Recession (December 2007 to June 2009) and the dot-com recession (March 2001 to November 2001). 7 This finding challenges the attribution of the Great Resignation to the pandemic, demanding further empirical investigation that would confirm this attribution.Ĭonsistent with this goal, this article compares U.S. 6 However, research conducted prior to the pandemic shows that hires, job openings, and quits all reached new highs in 2018. 5 A Public Broadcasting Service documentary on the future of work explored the potential effect of the COVID-19 pandemic on “American ‘workism,’” observing that, compared with men, women are leaving the workforce more rapidly and in larger numbers for a variety of reasons, including gaining access to childcare and providing care for family. 4 These resignations have also been attributed to people making changes to their work–life balance. 2 As noted by one author, return-to-office mandates, attractive job offers from competing employers, and revelations about better work–life balance have motivated a “record-breaking departure from jobs in a shockingly small window of time.” 3 Using a global survey of 4,000 companies and more than 9 million employee records, a recent study found that resignations increased the fastest among midcareer employees (i.e., those between 30 and 45 years of age). This phenomenon, whose moniker was coined by Anthony Klotz, involves record rates of job quitting during the pandemic. economy from returning to its prepandemic condition.Ī major observation associated with the COVID-19 pandemic is the “Great Resignation” phenomenon, which has received significant attention. However, the persistence of the pandemic through new COVID-19 variants, coupled with multiple waves of infection, kept the U.S. In response to the pandemic, governments shut down many segments of their economies, except those deemed “essential.” 1 In the United States, the economy “troughed” for a few months immediately after the implementation of these policies. The coronavirus disease 2019 (COVID-19) pandemic had a sudden, rapid, and unprecedented impact on many national and local economies. However, if the phenomenon persists, it is conceivable that labor-saving investments that were hitherto economically infeasible will become feasible, altering the nature of work and the workplace. ![]() ![]() The article empirically confirms the “Great Resignation” phenomenon, which is characterized by record job quitting during the pandemic, and suggests that this phenomenon may be ameliorated by increasing hourly earnings, thereby increasing employees’ switching costs. A regression analysis assessing the antecedents of the pandemic’s quits rate also reveals that while the rates for hires and job openings had a positive effect on quits rates, hourly earnings and the unemployment rate exerted a negative effect. In addition, the results show that, during the pandemic, quits rates in firms with fewer than 1,000 employees were higher than quits rates in firms with more than 1,000 employees. The article shows that, compared with the dot-com recession of 2001 and the 2007–09 Great Recession, the pandemic produced unique quits rates, and this finding holds across U.S. Article November 2022 Empirical evidence for the “Great Resignation” This article empirically assesses the observed increase in job resignations during the coronavirus disease 2019 (COVID-19) pandemic and examines the pandemic’s uniqueness from prior macroeconomic events.
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