New Labor Data Rings Death Knell for the ‘Great Resignation’

It’s been roughly four years since Kim Kardashian nearly broke the internet (again) with her claim that “nobody wants to work these days.” How times have changed. 

Back then, the US economy was in the throes of what became known as the “Great Resignation,” during which an unprecedented number of workers quit. But the latest data from the Bureau of Labor Statistics shows that only 2.97 million workers voluntarily left their jobs in February, the lowest level since August 2020. 

“Today’s labor market tells a completely different story compared to the ‘Great Resignation,’” Sneha Puri, an economist at Indeed Hiring Lab, told The Daily Upside.  “In late 2021 and early 2022 … workers felt empowered and felt that they had options to leverage.” 

But the quit rate of 3% then has since fallen to below 2%. Workers aren’t confident about the state of the labor market, so they’re hanging on to the job they’ve got. 

Devil You Know   

If you’re pessimistic about your chances of escaping a bad boss or long commute, you’re not alone. Just 28% of workers say it’s a good time to find a quality job, down from 70% in mid-2022, according to Gallup data. Although understandable, that caution comes at a cost. 

“A labor market without movement is one without dynamism; fewer workers switching jobs means less wage competition, slower career advancement and ultimately a drag on broader economic momentum,” Puri said.

But resignations aren’t the only data that economists are watching in this low-hire, low-fire environment: 

• Just about 4.8 million workers found work in February, meaning that hiring has fallen to its lowest rate since 2020. 
• The layoff rate inched up from the previous month: 1.1% in February after 1% in January. 

Limbo for Longer: Looking ahead, Puri said workers may be even less inclined to leave jobs voluntarily, with inflation starting to creep up and wage growth slowing amid broader political instability. “We expect the quits rate to stay low as the labor market continues to be in this limbo,” she added.