The Great Resignation, Explained in One Chart | WSJ

Summary

The American workforce is experiencing a significant shift known as the 'Great Resignation,' with over 4 million workers quitting their jobs in August, setting a 20-year record. Sectors like travel, hospitality, and motion picture industries have seen significant declines, while e-commerce and related fields have boomed. The pandemic has prompted reevaluation of work-life balance, leading to early retirements and job switches for better pay or conditions. Despite government relief efforts, labor shortages may indicate longer-term changes in the workforce.

Takeaways

• 📊 The American workforce is experiencing significant shifts with some sectors showing strong job growth while others are in decline, reflecting a larger societal and economic phenomenon.
• 📉 The pandemic has caused unprecedented job loss, particularly in industries like motion picture, sound recording, travel, hospitality, and transportation, which are still struggling to regain their workforce.
• 💼 The term 'Great Resignation' describes a record number of workers quitting their jobs, with over 4 million doing so in August, marking a 20-year high.
• 🤔 Many individuals are reassessing their career paths and the meaning of work in their lives, possibly due to the impact of the pandemic.
• 🧧 Government relief payments may have reduced the motivation for some workers, especially those in lower-paying jobs, to return to their previous employment.
• 😷 Health concerns related to COVID-19 have kept some workers, particularly older individuals, from returning to the workforce, with many choosing early retirement.
• 💼 The pandemic has led to a reevaluation of priorities for some, with approximately 1.5 million more people retiring than in 2019, based on Federal Reserve Bank of Dallas estimates.
• 🔄 Workers are not just leaving jobs, but many are transitioning to different industries, often for better pay or working conditions.
• 💰 Employers are responding by offering higher wages and benefits to attract new workers, as seen in the increase in jobs in industries like e-commerce, warehousing, and scientific research.
• 📈 Despite the addition of about 3 million jobs from April to September, the overall employment rate remains down compared to pre-pandemic levels.
• 🔮 There is optimism among some economists for a return of workers as COVID cases decline, but others warn of longer-term labor shortages that could lead to lasting changes in certain industries.

Q & A

What is the Great Resignation and why is it significant?

The Great Resignation refers to a phenomenon where a record number of American workers are quitting their jobs, reevaluating their career choices, and priorities in life. It is significant as it is affecting almost every industry and could define the future of American labor.

What was the record high number of workers who quit their jobs in August, as mentioned in the script?

In August, more than 4 million workers quit their jobs, marking a 20-year high.

How did the pandemic affect the American workforce according to the script?

The pandemic led to businesses closing their doors and tens of millions of people losing their jobs. Certain industries like motion picture, sound recording, travel, and hospitality experienced significant job losses and have struggled to regain their workforce.

What was the role of federal government relief payments during the pandemic?

The federal government provided relief payments to help workers and businesses stay afloat during the economic downturn caused by the pandemic.

Which sectors have seen the most significant decline in employment since the pandemic began?

The travel and hospitality sectors, as well as motion picture and sound recording industries, have seen the most significant declines in employment, with some still being well below pre-pandemic levels.

What impact did the pandemic have on transit and ground passenger transportation jobs?

Transit and ground passenger transportation jobs saw a huge hit, losing over 18% of their workforce, with sectors like ride sharing experiencing a nationwide shortage of drivers.

Why might some workers be less motivated to return to their lower-paying jobs after the pandemic?

The pandemic relief payments may have made workers with demanding, lower-paying jobs less motivated to return, as they had an alternative source of income without the risks associated with working during the pandemic.

How has the pandemic influenced the retirement decisions of older workers?

The Federal Reserve Bank of Dallas estimates that about 2.5 million people retired during the pandemic, twice as many as in 2019, with many choosing to reassess their priorities due to concerns about COVID-19.

What are some reasons workers might be switching jobs during the Great Resignation?

Workers might be switching jobs due to experiencing burnout during the pandemic, seeking better pay or working conditions, or looking for different opportunities in other industries.

How have some employers responded to attract new workers during the labor shortage?

Some employers have offered higher wages and healthcare benefits to attract new workers, in response to the labor shortage caused by the Great Resignation.

Which industries have seen significant job growth as a result of pandemic-driven shifts?

E-commerce, warehousing, storage, manufacturing, shipping, and postal companies, as well as scientific research and development services, have seen significant job growth due to increased demand during the pandemic.