Why Everyone Is Quitting The 40 Hour Work Week

Summary

The video discusses the phenomenon of the 'Great Resignation', where millions quit their jobs, particularly Gen Z and Millennials. It delves into historical labor laws, technological advancements, and their impact on productivity and wages. The script highlights the disconnect between increased worker efficiency and stagnant wages, suggesting that the pandemic prompted a reevaluation of work-life balance. It also explores whether one should quit their job, emphasizing the importance of financial security and job satisfaction.

Takeaways

• 😲 The CEO of Squarespace suggested that Gen Z job seekers should be willing to work for free, which is a stark contrast to the traditional belief that one should be compensated for their skills and expertise.
• 📉 The speaker humorously reflects on their own lack of financial success as a magician due to performing for free, mirroring the sentiment of not working for free.
• 📚 A significant trend of 'The Great Resignation' began in 2021, with over 47 million people quitting their jobs, and continued into 2022 and 2023, with numbers reaching over 50 million quits in 2022.
• 🏆 High-profile resignations included CEOs of major companies like YouTube, BP, and Walgreens, highlighting that the trend was not limited to the general workforce but extended to top executives as well.
• 🔮 The term 'quiet quitting' emerged in 2023, indicating another wave of people leaving their jobs, with a notable increase in resignations among Gen Z and Millennials.
• 🤔 The video aims to explore the reasons behind the mass resignations and questions the sustainability of the 40-hour work week, a standard that has not been updated since the 1940s.
• 🧠 An MIT neurosurgeon's story is highlighted, illustrating a personal epiphany that led to quitting a prestigious job, emphasizing the impact of lifestyle factors on health outcomes post-surgery.
• 📊 The script discusses various surveys revealing top reasons for job resignations, such as low pay, lack of advancement opportunities, and feeling disrespected at work.
• 🛠️ Historical context is provided to explain the disconnect between increased productivity due to technological advancements and stagnant wage growth since the 1940s.
• 🌐 Globalization and trade agreements like NAFTA, along with the rise of the gig economy, are identified as factors contributing to increased competition and downward pressure on wages.
• 💡 The pandemic is suggested as a catalyst for a shift in workers' attitudes towards their jobs and lives, prompting many to reevaluate their priorities and seek greater happiness and fulfillment.

Q & A

What was the CEO of Squarespace's controversial statement about Gen Z job seekers?

The CEO of Squarespace suggested that Gen Z job seekers should be willing to work for free, work long hours, and be willing to do anything, which some people found controversial as it echoes the concept of volunteering rather than compensated work.

What is the term used to describe the trend of a large number of people quitting their jobs in 2021?

The trend of a large number of people quitting their jobs in 2021 is referred to as 'The Great Resignation'.

How many Americans quit their jobs in 2022, making it the year of the great resignation?

In 2022, over 50 million Americans quit their jobs, which was the highest number on record and led to the year being called the year of the great resignation.

What is 'quiet quitting' and why did it become a trend in 2023?

'Quiet quitting' refers to the phenomenon in 2023 where people, including CEOs, were quitting their jobs, not just regular employees, which became a notable trend due to the high-profile nature of some of the resignations.

What is the average annual paycheck of a CEO, according to the video?

The video states that the average annual paycheck of a CEO is $16.7 million a year.

What was the MIT neurosurgeon's realization about the effectiveness of surgeries and what led to his resignation?

The MIT neurosurgeon realized that surgeries were not as effective as he had hoped and that lifestyle factors such as diet, exercise, sleep, and stress management played a significant role in recovery. This realization, coupled with the realization that the healthcare system was not set up to support these lifestyle changes, led to his resignation.

What is the Fair Labor Standards Act (FLSA) and why was it changed in 1940?

The Fair Labor Standards Act (FLSA) is a law that was changed in 1940 to establish a 40-hour work week and define overtime pay, full-time and part-time employment. It was changed to increase productivity based on the economic conditions and productivity levels of that time.

How has productivity growth changed since 1947 and what does it mean for workers today?

Since 1947, productivity growth has skyrocketed due to technological advancements. It means that the same worker can now do significantly more work in a shorter amount of time, but this has not necessarily translated into higher wages or reduced work hours for most workers.

Why has wage growth not kept pace with productivity growth since the 1970s?

Wage growth has not kept pace with productivity growth due to a variety of factors, including changes in labor laws, increased automation, globalization, and a shift towards maximizing shareholder value over worker welfare.

What impact did the pandemic have on people's attitudes towards work and life?

The pandemic led to a moment of reflection for many people, causing them to reconsider their priorities and the balance between work and life. It prompted a shift from living to work to working to live, with a focus on mental health and overall well-being.

What advice does the video give for those considering quitting their job?

The video suggests that individuals should have 6 months to 1 year of emergency expenses saved up before quitting their job. It also mentions that switching jobs every 2 to 3 years is a recommended strategy for income growth.

Outlines

00:00

📰 CEO's Advice Sparks Debate on Job Expectations

The video script begins with a discussion on a recent article by the CEO of Squarespace, which suggests that Generation Z job seekers should be willing to work for free, endure long hours, and perform any task. The speaker humorously contrasts this with the idea of volunteering and reflects on the trend of mass resignations, highlighting the 'Great Resignation' of 2021 and 2022, where millions of people left their jobs. The speaker also mentions the 'quiet quitting' wave in 2023 and the expectation of a 'Great Resignation 2.0' in 2024. The video aims to explore why so many people are quitting their jobs and questions the relevance of the 40-hour work week law established in the 1940s.

05:00

🏥 The Dilemma of a Neurosurgeon: Profit vs. Healing

The script continues with a story about an MIT neurosurgeon who quit his high-paying job after realizing that many surgeries he performed did not lead to lasting health improvements for his patients. His epiphany came from observing that patients who recovered well had certain lifestyle factors in common, such as a plant-based diet, exercise, adequate sleep, and low stress levels. However, he found that the healthcare system is structured around procedures that can be billed, rather than promoting long-term health. This realization led him to quit, sparking a broader discussion about why people are having epiphanies and leaving their jobs.

10:00

📊 Historical Context of Work and Wage Disparities

The speaker delves into historical and economic factors that have contributed to the current state of work and wages. They mention the Fair Labor Standards Act of 1940, which established the 40-hour work week and overtime pay, and how productivity growth has outpaced wage growth since the 1970s. Factors such as the Taft-Hartley Act, investment tax credits, trade acts, and the rise of automation and globalization are discussed as contributors to the wage stagnation despite increased productivity. The speaker suggests that these historical and economic changes have led to a system where workers are expected to do more with less, leading to burnout and the desire to quit.

15:01

🌐 Pandemic Reflections and the Shift in Work-Life Priorities

The final paragraph discusses the impact of the COVID-19 pandemic on people's perspectives on work and life. The speaker suggests that the pandemic forced a moment of reflection, leading many to reconsider their priorities and the value of their work. The script highlights that the shift from living to work to working to live has been a significant factor in the recent trend of quitting jobs. The speaker also touches on the economic challenges of rising costs of living and the disconnect between increased productivity and wage growth. The video concludes with a call to action, encouraging viewers to consider whether they should quit their jobs and to think about the importance of happiness and quality of life in their career decisions.

Keywords

💡Gen Z

Gen Z refers to the generation born between the mid-1990s and early 2010s, known for their digital fluency and distinct attitudes towards work and life. In the video, the CEO of Squarespace's comments on Gen Z job seekers are highlighted, suggesting they should be willing to work for free and long hours, which contrasts with traditional views on fair compensation for work.

💡The Great Resignation

The Great Resignation is a term used to describe the significant trend of people quitting their jobs, particularly in 2021 and 2022. The video discusses this phenomenon, noting that over 50 million Americans quit their jobs in 2022, which was a record high, and connects it to broader societal shifts in attitudes towards work.

💡Burnout

Burnout is a state of chronic stress and emotional exhaustion, often resulting from excessive and prolonged work. The script mentions burnout as a driving factor behind the mass resignations, suggesting that the high expectations and demands placed on workers have led to widespread fatigue and a reevaluation of work-life balance.

💡Productivity Growth

Productivity growth refers to the increase in output per unit of input over time, often as a result of technological advancements or improved processes. The video explains how productivity has skyrocketed since 1947 due to technological revolutions, but this has not translated into proportional wage growth for workers.

💡40-Hour Work Week

The 40-hour work week is a standard set by the Fair Labor Standards Act of 1938, which established the maximum number of hours worked in a week without overtime pay. The video questions the relevance of this standard in the context of modern productivity levels and worker expectations.

💡Wage Growth

Wage growth refers to the increase in workers' earnings over time. The script discusses how wage growth has not kept pace with productivity growth since the 1970s, leading to a disconnect between what workers produce and what they are paid.

💡Job Satisfaction

Job satisfaction is the contentment and fulfillment derived from one's work. The video implies that a lack of job satisfaction, possibly due to poor work-life balance or feeling undervalued, may be a factor in the Great Resignation.

💡Work-Life Balance

Work-life balance is the equilibrium between an individual's professional and personal life. The script suggests that the pursuit of better work-life balance is a motivating factor for many individuals quitting their jobs, reflecting a shift in societal values.

💡Gig Economy

The gig economy refers to a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. The video mentions the rise of the gig economy, which has altered traditional employment structures and contributed to changes in worker expectations and job stability.

💡Mindfulness

Mindfulness is the practice of being present and aware in the moment, often used as a stress reduction technique. The script cites an MIT neurosurgeon's realization that recovery from surgeries was more successful in patients who practiced mindfulness, indicating a link between mental well-being and physical health.

💡Economic Slowdown

An economic slowdown refers to a period of reduced economic activity. The video touches on historical economic events like stagflation in the 1970s and the impact of inflation and economic policies on wage growth and job stability.

Highlights

The CEO of Squarespace suggests Gen Z job seekers should be willing to work for free and long hours, contrasting with traditional values that discourage working for free if you're good at something.

In 2021, more than half of people surveyed indicated they were looking for a new job in 2022, with 47 million people quitting their jobs, the highest on record.

2022 was dubbed the 'year of the great resignation' with over 50 million Americans quitting their jobs.

2023 saw another wave of resignations, termed 'quiet quitting,' including CEOs from major companies like YouTube, BP, and Walgreens.

In 2024, it's predicted that three in ten workers plan to quit their jobs, with most of these being Gen Z and Millennials, leading some to call it the 'year of the great resignation 2.0'.

An MIT neurosurgeon quit his job after 10 years, citing a realization that lifestyle factors like diet, exercise, and stress management were more crucial for patient recovery than surgeries.

The neurosurgeon's story highlights a systemic issue where hospitals prioritize profit over patient well-being, leading to a conflict of interest in healthcare.

Data from Microsoft and LinkedIn shows that 46% of people across 31 countries want to quit their jobs, higher than the 40% during the Great Resignation.

Surveys reveal the top reasons for quitting include low pay, lack of advancement opportunities, disrespect at work, and child care issues.

The Fair Labor Standards Act (FLSA) of 1940 changed the work week from 44 to 40 hours and established overtime pay, but wage growth has not kept pace with productivity since the 1970s.

Technological advancements have increased productivity, allowing workers to do more work in less time, but this has not translated into proportional wage growth.

Factors like the Taft-Hartley Act, investment tax credit, trade acts, and the rise of the gig economy have contributed to the decoupling of wage growth and productivity.

The pandemic acted as a catalyst for reflection, leading many to reconsider their work-life balance and priorities.

The shift from 'living to work' to 'working to live' has prompted many to reevaluate their jobs and life choices, prioritizing happiness and mental health.

A recent survey indicates that about a third of people are looking to quit their jobs, with the highest percentage being between the ages of 18 to 34.

Experts recommend having 6 months to 1 year of emergency expenses saved if considering quitting a job, and suggest that job switching can be a strategy for income growth.

Transcripts

did you guys see this article that was

floating around recently from the CEO of

Squarespace where she said gen Z job

Seekers should be willing to work for

free work long hours and willing to do

anything now back in my day that was

called volunteering because I was always

taught that if you're ever good at

something you should never do it for

free which is why I never made money as

a magician that's why I do it for free

here on YouTube but here's what's

interesting do you remember a couple

years ago there was this massive wave of

resignations more than half of the

people surveyed in 2021 for example said

that they'd be looking for a new job in

2022 and a lot of those people actually

kept their promise because data shows

that in 2021 as many as 47 million

people quit their jobs which was the

highest year on record until 2022 which

became known as the year of the great

resignation when over 50 million

Americans quit their job then in 2023 we

got another wave of quitting which

became known as quiet quitting and it

wasn't just regular people quitting

their jobs but it was also the SE CEOs

even though the average paycheck of a

CEO was

$16.7 million a year CEOs from companies

like YouTube BP Walgreens also quit

their positions and that brings me to

2024 which some people are starting to

call the year of the great resignation

2.0 because three in 10 workers are

planning to quit their job this year and

most of those quits are attributed to

gen Z and Millennials in fact quinning

has become so popular that even this guy

was forced to quit so in today's video I

want to help answer a couple interesting

questions like what the heck is going on

why have so many people quit their jobs

in the last few years and why are we

still following a law that hasn't been

changed since the 1940s about the

40-hour work week and should you quit

your job there's a lot of really

interesting data that I want to share

with you about this so with that said

let's get into it hi my name is Andre J

hope you're doing well come for the

finance and stay for the jobs now this

video was inspired by another video that

went absolutely viral about an MIT

neurosurgeon who quit his job after

working for 10 years making hundreds of

thousands of dollars working on people's

spines and brains and he's just telling

his story way up in the mountains and it

really caught my attention because I

thought how could someone quit such a

prestigious job after working so long

and making so much money and he has a

super interesting story that goes back

10 years ago when he took this oath to

become a neurosurgeon and what he found

out was that the surgeries would help

people from time to time but more often

than not the surgeries did not help most

people so he started to ask his patients

questions about their lives like what

kind of job they had whether they were

stressed or not whether they exercised

and what they ate and how long they

slept and he says that throughout all of

it he found out out something really

interesting what he found was that the

people that would be able to recover

from his surgeries all had a couple

things in common people that got better

were having a mostly plant-based diet

and they were definitely not eating

salty and they would do things that

would make them sweat like exercise

being outside hiking like this uh going

to a sauna or they live in a warm

place um they didn't

smoke they didn't drink

much usually had a good social support

like uh loved ones family members

children

friends

um like a way to socialize they would

sleep they would sleep like 8 hours

every day and they weren't stressed out

or they if they had a stressful job or

something they they they found a way

to be mindful or meditate or like just

be present

and um release the stress back into the

universe then he goes on to say that the

people that couldn't maintain their

health after the surgery were the

opposite from those people they were

people that did not get a full 8 hours

of sleep they felt stressed a lot of

times they didn't exercise much they

didn't eat healthy food and they didn't

have a lot of friends or support group

to help them get through it so surgeries

for those people would help them

temporarily but then their body would go

back to having pain again and that's

when he had his Epiphany the aha moment

of how to actually help people and he

said that realization became a huge

problem but the way that everything is

set up in the whole country it's not any

particular Hospital the way things are

set up is that the hospital needs to

make money the problem there

is that if you figure out a way to help

patients

heal and that way doesn't include a pill

or a

surgery

well then the hospital and the doctor

are in big trouble because if you figure

out a way to help people heal and you

can't charge them for

it well then you've just um worked

yourself out of a job

so once he had this realization he said

that he gained a lot of weight he became

sad and angry and he realized that he

couldn't continue working for another 20

years because he didn't think he'd live

that long so last September he quit his

job and I really resonated with his

story because I know how hard it is to

work for something for 20 years only to

realize that maybe that's not the thing

you were supposed to do so his story

really made me wonder why are people

having these epiphanies and quitting

their jobs so the first place that I

started looking at was at the data and

what I found was that more people want

to quit their job today than ever before

big Tech like Microsoft and Linkedin for

example showed that out of 31,000 people

across 31 countries 46% of them said

that they want to quit and that is a lot

more people than even during the Great

resignation when only 40% said they

wanted to quit so I put that data aside

and I wanted to look deeper at the

surveys into what actual people were

telling us why they were quitting their

jobs and according to surveys from

Statia here were the top 10 major

reasons why people are quitting their

job

today reason 10 is because employers

required a vaccine reason nine was

working too few hours number eight some

people wanted to relocate to a different

area seven some people thought they

worked too many hours where the benefits

weren't good or not enough flexibility

reason number four child care issues

number three people felt disrespected at

work number two some people felt they

had no advancement opportunities but the

biggest reason is that they thought the

pay was just too low these are all

really good reasons for anyone to quit

their job but the problem is they're not

new anyone could quit their job for any

of these reasons in any given year and

it doesn't really help me explain this

phenomena of why so many people have

quit so recently so I decided to look

back farther into the past and the

deeper I looked the more this picture

started to make sense because the real

problem started before most of us were

even born we have to go back to

1940 that's when the flsa or the fair

labor standards Act was changed from a

44-hour work week to a 40-hour work week

in order to increase productivity it was

also then when we decided for the 2-day

weekend how much someone would get paid

working overtime what it meant to be

full-time and part-time now those laws

were based on the economic conditions

and the productivity levels of that time

but here's the problem over the last 80

years we've had a huge technological

Revolution we invented automation

Computing instant communication the

exchange of information the internet Ai

and all of that meant an increase to

what's called productivity growth

meaning the same worker could now do way

more work in a shorter amount of time

and data shows that since 1947

productivity growth has skyrocketed so

here's what all that means if we take

two people one with access to 2024

technology and one with access to 1947

technology it's the person who's using

modern technology who can make on

average almost five times as much stuff

as the other person or get five times as

much work done that also means one of

two things if we can do more stuff but

we're not making more money we can maybe

work less but obviously we know that's

not the case most people are still

working 40-hour work weeks or more if

they're on a salary or there's option

two which is we make more money but

here's the data of what actually

happened not only are people working

multiple jobs today which was not the

norm in the 1940s but wage growth has

not kept up with productivity in fact it

split sometime in the early 1970s the

question is why did it split and the

answer is pretty complicated because

there's a lot of reasons so I put

together just a few of them there was

something called the Taft heartley Act

of 1947 for example which restricted the

activity and power of labor unions and

that led to the decline in Union

membership and Union power this law

stopped allowing unions from making

donations to Federal political campaigns

which meant less representation for the

workers then in 1962 there was the

investment tax credit which encouraged

businesses to invest in new machinery

and technology which increased the

development of Automation and efficiency

then we got 1974 and the trade Act of

1974 which encouraged companies to

relocate their manufacturing overseas

and Manufacturing overseas meant more

jobs went overseas which also lowered

wage growth here in the United States

then in the 1970s there was the oil

shock which led to high inflation and an

economic slowdown that created something

called stagflation which slowed the wage

growth and decoupled it from

productivity even more then there was

even more inflation thanks to Nixon's

wage and price controls and in

1978 there was the airline deregulation

act which increased competition in the

industry and lowered job security and

benefits for workers then there was a

huge shift towards maximizing

shareholder value and that's when

companies started to prioritize profit

making over workers and their wage

growth then in the 1980s there were the

right to work laws which allowed people

to not pay their union dues and that

made the unions less money which made

them less effective after this law some

studies show that wages dropped 1% 5

years after the law was passed and it

keeps on getting worse cuz in 1980 the

same thing that happened to the airline

industry happened to the trucking

industry with the motor carrier Act of

1980 which led to deregulation which

increased competition and lowered job

security and benefits for workers and

then we got the 1990s and the world

became more globalized the nations of

North America are ready strengthened by

the explosion of growth and trade to

recognize that there is no turning back

from the world today and tomorrow the

North American Free Trade Agreement or

NAFTA lowered trade barriers between the

US Canada and Mexico which increased

competition from lower wage countries

then in the 2000s China joined the World

Trade Organization which increased

imports from China and put a huge

pressure on American wages because of

the lower labor costs then in the 2010s

we got the rise of the gig economy we

got apps like uber and Lyft and those

apps were great in allowing people to

make more money but it also led to the

gig economy which came without the wage

protections and the standard employment

benefits combine all of that with the

crazy growth we've seen in the stock

market and in real estate due to

liquidity as a means to pay the debt

from our past and you get the world as

we know it today all in all these are

some of the reasons why workers today

can get a lot more work done but why

they get paid less for it and the

expectations for workers are higher than

they've ever been before and that has

led to burnout but I also think there's

one more thing like I said this has been

building for 80 years now and What's led

people to the edge of this burnout to

quit was the pandemic but really the

best answer that I could find that helps

explain all of it is this people have

been living to work for a very long time

and I think the pandemic brought that

moment of reflection for everyone what

do I want to do what makes my heart

sink and people are thinking if not now

then when and I think she's absolutely

right before the mentality was we should

live so that we could work so that we

can pay our bills and that was the

illusion that we all believed in as long

as the times were good back when cars

and houses were more attainable when

food was a lot cheaper when gas prices

weren't so high when utility bills were

more reasonable when restaurants didn't

ask for a tip for every single

transaction and then we got the pandemic

and the global economy was shut down and

everything was brought to a standstill

so the Government tried to bail us out

by printing trillions of dollars and

causing an excess of 20% inflation over

the last few years and that was the

moment when there was this mental shift

in how we thought not just about our

jobs but about our lives because we went

from living so that we can work to

working so that we can live because if

the jobs we work impact our mental

health which has a direct effect on the

quality of our lives and how long we

live for I think that's why people are

rethinking everything and prioritizing

and maximizing for happiness instead and

I think those are the reasons for why

these changes are taking place in the

last few years and I think you're going

to see a lot more of these stories about

more and more people want wanting to

quit their jobs a recent survey for

example noticed that out of a thousand

people pulled roughly a third said

they'd be looking to quit and start a

new job soon and the highest percentage

of those people came from people between

the ages of 18 to 34 and that makes

perfect sense to me because when you're

younger you tend to move around a lot

anyway because you're still trying to

figure it out but I also think there's

this effect that the younger generation

sees the outcome of the older generation

they look at the economy and everything

that's going on and they make the

choices that they do which isn't to say

that they're good or bad that's a

separate discussion but one thing that I

think is true is CEOs are not going to

watch this video and be like this young

man has a point here let's pay them more

and allow them to work less so I think

the only other question that I want to

help explore is should you quit your job

and the answer of course is that it

depends I actually took a quiz from The

Washington Post about my job making

videos here on social media I'll leave a

link for it down below but I consider

myself to be extremely lucky because

even though these videos take a lot of

work to make and I'm a oneman team I

don't have any editors I'm the only

person that scripts and shoots and edits

and plans for these videos and answers

the comments and everything else I think

it's extremely rewarding and I think the

thing I look forward to the most is

knowing that at least one of my videos

helped someone out there with something

I think validation goes a long long way

but so does making money which is why

experts say you should have anywhere

between 6 months to 1 year for emergency

expenses if you do decide to quit and

studies also show that switching jobs

especially early on is the fastest way

to grow your income in fact it's

actually recommended that you should

switch your job every 2 to 3 years which

is the best strategy to grow your income

and I wish I did that with my last

career but you

know I never said I was any good but I'd

love to hear your thoughts are you

staying with your job are you quitting

and if you are why and do you still

think we should be working a 40-hour

work week as always I hope you have a

wonderful rest of your day smash the

like button subscribe if you haven't

already don't forget to grab your free

stocks links are down below go track

them automatically with a spreadsheet

link Down Below in my patreon thank you

so much for watching this video I'd love

to see you back here next week I'll see

you soon bye-bye